Category: Brewery

The Impact of COVID on Beer Tourism

Cyndi
tourists having a beer taste test

By: Becky Garrison

As expected, brewery tours were among those hospitality offerings impacted by the ongoing global pandemic. While some experimented with online offerings, others simply closed shop or halted operations intermittently.

  For example, prior to COVID, Abil Bradshaw regularly gave tours of the Seattle-based Pike Brewing Company. Also, the brewery engaged Savor Seattle, a local tour provider, who gave tours daily. However, during COVID, Bradshaw moved to Spokane. Also, Savor Seattle ceased operations. While Pike remains understaffed and not in a position to offer tours, founder Charles Finkel can meet for a special tour at the brewery if given adequate notice. 

  Following are examples from a range of brewery tour operators regarding how they pivoted their operations during the past few years, as well as any plans they have for the future.

City Brew Tours, Portland, OR 

  At the end of 2019, City Brew Tours, a tour operator with operations in over 16 cities, had just taken over the operation of Brewvana Portland Brewery Tours. In this capacity, they operated the Original Portland Brew Tour and the Pacific Northwest is Best Tour, as well as private tours. Their Original Tour ran five hours long, visited four of their brewery affiliates and included a meal and beer pairing. The Pacific Northwest is Best tour is a shorter tour at  3 1/2 hours, with three stops and a craft beer pretzel snack.

  Like many other businesses in the hospitality industry, they stopped running their tours in March 2020 with no idea how long they would have to suspend operations. Also, they were unable to provide adequate employment for their beer guides and full-time staff. Chad Brodsky, the founder & CEO of CBT Group, LLC, reflects on this period of time. “There was no workaround and no safe solution to resume in-person tours during the worst of COVID-19. It took 15 months before we could slowly reopen brew tours in Portland, and even then, we had to take every precaution possible, including the limited number of guests, mask mandates, proof of vaccination and strict sanitation protocols.

  During the shuttering of their brew tours, they pivoted to virtual experiences under the brand Unboxed Experiences. Also, they repurposed Brewvana to be a beer lifestyle brand that offered a beer of the month club that explored a new beer city every month along with beer-making kits. This enabled them to bring their full-time staff back. Also, they were able to utilize some of their beer guides in leading online events, such as beer-making at home, beer and cheese pairings and ice cream float experiences.

  Since resuming operations in the summer of 2021, they’ve been able to reintroduce the two tours they were running before COVID-19. However, at times they had to temporarily suspend one or both of their Portland public tours due to the lingering issues brought about by the rise of COVID variants.

  According to Brodsky, staffing and finding reliable tour vans remain the biggest lingering challenges of COVID-19. He noted, “Our hiring process includes multiple steps and trial runs to ensure that new guides can safely lead a tour and are comfortable with the responsibility. The process takes time, and when potential hires decided it wasn’t for them, it would set us back and affect our ability to operate regular tour schedules. Plus, with a country-wide vehicle shortage, it took a long time to secure another passenger van to run more tours.”

Seattle Brewery Walking Tours, Seattle, WA

  Pre-COVID, Tim Lorang offered walking tours of breweries mostly in Seattle’s Ballard or Georgetown neighborhoods. These tours consisted of visiting three breweries for a guided beer tasting of four beers at each brewery. During this tour, he would talk about the beers and beer styles, along with the history of beers and focus on why Seattle was at the forefront of the craft brewing renaissance.

  Once COVID hit, he experienced a 69 percent reduction in his tours in 2020. Lorang experimented with designing webinars and making guides for beer tastings. However, he found this venture became problematic because he could not deliver beer samples to consumers, as he lacked the needed licenses required to send beer through the mail. Also, most breweries had a much more limited supply of beer on stock, and it proved tricky for him to come to a given brewery so he could film his segments. 

  In 2021, his numbers went up 340 percent from the previous year once breweries opened to the public. While Seattle was still not open to tourism, Lorang found that locals within the greater Seattle area booked his tours as they were desperate to go outside and socialize.

  As a number of breweries closed or changed hands, Lorang found he needed to reestablish a number of connections with breweries, hotel concierges, and other businesses that catered to the tourist trade, as many individuals were no longer working in the hospitality industry. Initially, he was limited to hosting tours outside with breweries, only allowing five people per table. Along those lines, the influx of customers wishing to explore the breweries, especially during the weekends, made it difficult at times to find space to host his tour group. During this time, proof of vaccination was a requirement to go on a tour.

  In reflecting on why he remains in business when so many other tour operators have closed shop, Lorang notes that one of the key reasons he survived is that he is a solo entrepreneur. “I don’t have a lot of overhead. I don’t have a van. I don’t have a lot of employees. I’m semi-retired. This is just a passion for me.”

Pedal Bike Tours, Portland, OR

  Since 2008, Pedal Bike Tours has combined two of Portland’s favorite activities by offering pub crawls on a bike. A typical three-hour bike tour would travel five miles and feature a tour of three breweries with a taster tray of six beers offered at each brewery. During the tour, the guide would talk about the history of the microbrewery movement in Portland.

  During COVID, they had no business in 2020, though they could resume business as usual in 2020 with only one of the breweries they frequented remaining closed. They gathered outside where there were no COVID requirements other than the occasional need to mask to go inside the brewery. Also, during this time period, they ceased doing scenic van tours in the Columbia Gorge area after losing their van. 

  At present, they are back to full operations. They do not plan on resuming van tours, choosing instead to focus on their cycling tours. Moving forward, they just added electric bikes, though the tours will not expand the distance they cover. At present, their biggest challenge remains the price of tours, as they had to raise their prices due to the cost of beer.

BeerQuest Walking Tours, Portland, OR

  Pre COVID, they offered a brewery tour and haunted pub tour and would average five to seven public tours a week. In addition, they offered private corporate tours. Once COVID hit, their sales were down by 80 percent. They had to shut down their brewery tour altogether after two of their partners went out of business. Also, those partners who remained open reduced their hours and days of operations. 

  Since COVID hit, their private tour business with corporate clients remains non-existent. Also, they struggle to find employees and remain low-staffed. At present, they offer three or four public tours per week. In particular, they could offer a lower-priced shorter version of their haunted pub tour, which appears to work better for their customers. 

Santa Rosa Beer Passport, Santa Rosa, CA

  In 2016, Visit Santa Rosa created the Santa Rosa Beer Passport as a way to explore and celebrate the world-class craft beer scene in Santa Rosa. While Sonoma County is best known for producing world-class wine, a band of brewery brothers and sisters began pioneering the production of artfully crafted local beers. As a result, this city evolved into a mecca for microbrew maniacs.

  Based on the massive popularity of Russian River Brewing Company’s annual two-week February release of Pliny the Younger, Visit Santa Rosa launched FeBREWary. This venture was a way to promote Santa Rosa’s brewing heritage, showcase artisan producers in the craft beer industry, educate the greater public and unite those who make local beer with those who love it during an otherwise slow time for tourism in Santa Rosa.

  Participation in the self-directed Beer Passport program is simple. At their leisure, craft brew lovers can take their passports to each of the participating 14 breweries and receive a stamp. After collecting at least 11 brewery stamps during the entire month of FeBREWary, participants receive a custom-designed, commemorative oversized Santa Rosa Beer Passport bottle opener medal and lanyard.

  This model proved to be a low-cost way to introduce visitors to the local brewery scene and a tool to inform potential consumers of the changing developments.

Increased Options in the Use of Yeast Strains Leads to Distilling Boom

Cyndi

By Gerald Dlubala

It’s an exciting time for craft distillers, for sure,” said Kris Wangelin, manager and distiller at Square One Brewery and Distillery in St Louis, Missouri. “When you see what’s currently happening in craft distilling, it’s easy to believe that distilling is on the cusp of some amazing breakthroughs, comparable to craft brewing a few years ago. A big part of the anticipated breakthroughs includes the ability and willingness to experiment by combining and mixing available yeast strains, then playing around with the fermentation times. As a result, the distilled spirits consumer will benefit with new choices and innovations in taste profiles that will ultimately lead the way to unique cocktail creations.”

  Wangelin tells Beverage Master Magazine that, unlike before, today’s craft distillers have a mindset that doesn’t limit the available yeast strain choices they can choose to use in their distilling process. Rather than sticking to the traditional distiller’s yeast options, more progressive-minded distillers have a mindset that revolves around the simple question of, why not? With this type of inclusive thought process comes more significant occurrences and acceptance of crossover in the yeast strains used in both brewing and distilling. For example, there’s now more intermingling of strains previously considered only distiller’s or brewer’s yeast. In addition, craft spirits producers are open to experimenting with producing new flavor profiles and combinations that feature different depths and twists from the more traditional spirit profiles that consumers recognize.

  “Yeast strains are not strictly divided into distilling and brewing anymore,” said Wangelin. “Now, it’s more about experimentation and differentiation rather than passing on a particular strain or idea because it hasn’t been done. Now we’re excited to try it to see what happens. Sometimes we succeed, sometimes it’s a fail and sometimes we find that a particular flavor profile can be a good fit for something other than initially intended. But every time we try, we hone the specifics for future distilling success. We know spirits consumers generally have a favorite, go-to spirit profile, which becomes their home point when comparing other spirits. Still, we know they are willing to venture out to see what new flavor profiles may be trending and what possibilities are out there, and ultimately, it’s the consumer that will determine if our efforts are successful.”

  “And today’s spirits consumers also want to know the distiller and the product origins more intimately and personally,” said Wangelin. “A great way to differentiate our products from competitors is to remain as locally-based as possible with ingredients, yeast-driven flavor profiles and all related suppliers. Promoting our product this way makes everything more personal for our consumers. They see us vested in the community and then feel the same level of support by drinking our products.

  Additionally, the availability of any distinctive yeast strains offers us a way to create our own niche and become known as the place to go for that unique flavor profile or mash bill. When that specificity includes being from a local market or our own grain supply, as some are doing here in the Midwest, the consumer gets to see where our spirits start, making for a great story.”

  In the future, Wangelin sees the yeast providers experimenting more with different yeast strains and combinations to offer even more unique and varied flavor profile choices. It’s becoming common for yeast suppliers to ask a distiller what flavor profile they would like to produce rather than telling the distiller what’s available. Then the yeast supplier gets to work on developing and propagating new strains to meet the distiller’s desires. Why not?

Seek Experience and Results When Choosing a Yeast Supplier

  “In the alcohol business, taste rules,” said Dr. Pat Heist, co-founder, co-owner and CSO of Ferm Solutions and Wilderness Trail Distillery. “And when talking about yeast use in distilling, we know that some yeasts remain traditionally great performers, but that doesn’t mean there’s no room for experimentation.”

  Ferm Solutions is a leading research, product development, engineering and technical service provider to the ethanol and distilled spirits industries. They offer a two-day, 16-hour functional fermentation class that focuses on different fermentation levels using the same yeast strain.

  “Using 10 flasks with the same mash, we can achieve 10 different and very distinguishable results with only minor or minimal changes in the process,” said Dr. Heist. “Evaluations on those flasks reveal the easily recognizable and different attributes and developing trends due to those minor process changes.

  The difference in aromas is very distinguishable at the fermentation level. Ferm Solutions has done an excellent job identifying and selecting those yeast strains that perform best at the beer level. Once the beer is distilled, picking out those differences becomes more challenging because they’re now more subtle and enshrouded in higher alcohol content. After aging in a barrel, it becomes even more difficult and sometimes near impossible to differentiate the individual strains, especially with using and reusing barrels that may have held different spirits or alcohols.”

  “For new or inexperienced distillers, the main thing to remember is that a quality distilling yeast will always make a good distillate, whether you’re talking whiskey, bourbon, rum or other spirits,” said Dr. Heist. “That’s the starting point. First and foremost, craft distillers must focus on making the best product they can make. As much as they may want to venture into experimentation and try out new ideas, it’s always best to stick to a traditional plan and mash bill at the onset. Then, once they get experience in producing a great product, they can look at things like fermentation times and what the yield differences are when choosing to experiment and make changes to their proven production parameters.”

  Dr. Heist tells Beverage Master Magazine that the innovation and difference a distiller is looking for in their product isn’t always just a product of a new or unique flavor profile. It can also result from being in a unique locale or having a natural geographic advantage.

  “Maybe you’re producing your spirits in a region known for a specific strain of corn or other grain,” said Dr. Heist. “Use that to your advantage in spirits production and marketing plan. You’re a local spirits producer supporting your local makers and community. It’s a win-win situation.”

  Additionally, Dr. Heist believes that a distiller should choose a yeast supplier and producer with quality experience backed by round-the-clock technical support featuring someone that will pick up the phone when you call.

“We at Ferm Solutions know that a problem needs to be addressed now, not only during standard office hours. We started a craft distillery just eight short years ago and are now the 14th largest bourbon producer in the world, so I like to think that we know what it takes to succeed in this business.”

Whether Staying Traditional Or Experimenting, Focused Yeast Management is Critical

  “Yeast is a wily customer,” said Brent Elliott, Master Distiller at Four Roses Distillery. “It will find a way to flourish under many conditions, so here at Four Roses, we are mindful of possible contaminations or mutations by remaining extremely careful in our strain storage, use and management. Any little change in that yeast strain could change your flavor profile. Even if you think the change is minimal, it’s still there.”

  Four Roses uses five main yeast strains, the same ones they’ve used from their beginnings. These strains provide flavor profiles that include delicate fruit, rich fruit, herbal notes, slight spice and floral essence. Elliott tells Beverage Master Magazine that they haven’t wavered from those strains and are never more than one step away from the original mother strain, which is kept frozen until needed for propagation and the next batch.”

  “We frequently and consistently refresh and genetically test our yeast to maintain quality and authenticity,” said Elliott. “We propagate in-house, refreshing weekly if needed. It is one of the most tedious tasks we perform, but it’s also one of the most important and demands the most focus to maintain our quality and flavor profile.”

  Elliott said that the production of yeast compounds is a vital and tedious part of distilling, whether using single or multiple strains to produce and develop different flavors for your spirits. Of course, yields are essential, but when it comes down to it, yeast strains and their use are all about the desired flavor profile.

  “As a producer, you look at all the variables, including how high of an ABV beer is produced before distilling and the different flavors produced at different temperatures,” said Elliott. “The effects become very obvious when you approach it in analytical ways. For example, taste-testing distillate after different yeast strains like ours allows you to detect each unique flavor added through that yeast strain. It’s pretty cool that you think you can taste notes of a certain flavor profile with a distilled spirit, and then through testing, analytical processes and experimentation, you actually narrow down that implied flavor to a specific strain and get definitive reasons for experiencing that flavor. For example, our floral strain produces more phenol alcohol than other yeast strains, resulting in rose oil compounds that undoubtedly give you that floral note you get when enjoying our product. There’s a direct correlation.”

  Four Roses uses White Labs out of San Diego for most of its yeast products. White Labs has an inclusive catalog from which to choose yeast strains depending on your distilling goals. For example, a distiller can choose the traditional and more predictable yeast strains that have historically been successful or decide to experiment with the non-traditional strains. Another option is for spirits producers to provide their mash bill for customized yeast strains to be developed that fit into their distilling visions.

  “There really is a whole world of possibilities when it comes to choosing and using different yeast strains,” said Elliott. “When Seagrams owned us, we had a massive research department with over 350 yeast strains, each with unique details and characteristics. Now, especially with micro-distilling, those producers have a better path and more availability to experiment, innovate and produce new flavor combinations and spirits profiles.”

How to Get a Grant to Support Your Craft Beverage Business

Cyndi
grant contract paper

By: Alyssa L. Ochs

Starting a brewery or distillery can typically cost anywhere from $250,000 to $2 million, which is a lot of money to raise if you’re starting your new endeavor from scratch. Craft beverage businesses often need money from outside sources to launch and continue operations, and one potential source to look into is grant money.

  Grants can be hard to come by in this industry, but they do exist and can be worth the time and effort of applying for a sizable sum of no-strings-attached cash. If your brewery or distillery is looking for funding to get off the ground, keep going or make an expansion, a grant may be precisely what you need to achieve your goals.

Common Needs and Financing Options

  There are many reasons a craft beverage business might seek grant money, such as upgrading a brewing or distilling system, building or expanding a taproom or increasing production capabilities. Grants can also be helpful if you are looking to hire more staff, invest in more eco-friendly approaches or save a struggling business from having to close its doors. During the COVID-19 pandemic, the food and beverage industry saw an increase in grant opportunities to help brewers and distillers stay in business despite public gathering restrictions and government-mandated closures. However, those opportunities were somewhat short-lived and not intended to sustain these types of businesses long-term.

  However, grants are just one of the many ways a brewery or distillery might support itself during challenging times. It is possible to solicit donations or loans from family and friends, tap into savings accounts, apply for a Small Business Association loan or connect with professional investors for funding. Mainvest is an example of a specialized investment platform for professional craft brewers. At the same time, crowdfunding campaigns are still popular options for businesses with good outreach skills and a solid social media following. Yet grants are a preferred source of funding in many instances because they do not require repayment but likely just a follow-up report in the future to prove that grantees are putting the funds to good use.

Examples of Craft Beverage Grant Opportunities

  Grantmakers typically make their awards in cycles that occur once or twice yearly. The opportunities are ever-changing, so it is up to brewery and distillery owners to keep up with what is available and the relevant deadlines. Some funders offer grants annually, while others are more responsive to urgent needs and step up to help during times of emergency.

  For example, the Washington Department of Agriculture Relief and Recovery Grant for Wineries, Meaderies, Breweries, Cideries and Distilleries was a response to COVID-19 and intended to support businesses disrupted by the pandemic because they primarily rely on in-person sales. The money for these $15,000 grants came from a Disaster Response Account managed by the State of Washington Office of Financial Management. Aside from government organizations, some corporations award grants in this industry as part of a commitment to the local community. Yelp recently awarded $25 million in total relief to support independent and local restaurant and nightlife businesses impacted by COVID-19, Amazon started a $5 million Neighborhood Small Business Relief Fund to help small businesses in Seattle with fewer than 50 employees or less than $7 million in annual revenue and Facebook launched its Small Business Grants Program that awarded $100 million in grants and ad credits for up to 30,000 small businesses in over 30 countries. The Restaurants Act was part of the American Rescue Plan Act of 2021 and allowed alcoholic beverage trade groups to specifically include tasting and tap rooms in the definition of establishments that were eligible for grants.

  However, one of the best grantmakers to know is the Brewers Association, which regularly awards Craft Beer Research and Service Grants with priorities that include hop and barley research, draught beer quality studies, sustainability-related projects, supply chain programs and applied research opportunities. In a recent year, the Brewers Association awarded 13 of these grants, totaling nearly $400,000. The Brewers Association also awards Diversity, Equity and Inclusion Mini-Grants to support a more well-rounded and welcoming craft beverage industry through media productions, educational trainings and special events.

  Meanwhile, breweries and distilleries may benefit from the USDA grant program that the USDA’s Agricultural Marketing Service administers and that supports research projects to improve marketing, transportation and distributed-related services. The USDA’s Value-Added Producer Grant Program is an opportunity for farmers that grow products for distilleries in rural parts of the U.S.

  Also, on the distillery side of things, there is the Spirit Hub Independent Distillery Preservation Fund that supports independent distillers and the American Distilling Institute Distilling Research Grant. The Kentucky Distillers’ Association Lifting Spirits Foundation and the Nearest & Jack Advancement Initiative offer additional spirit-related funding and resources.

  Early in 2022, the Michigan Craft Beverage Council recommended $335,000 in grant funding for 13 projects related to research and education to advance the efforts for craft beer, spirits, hard cider and wine. The council’s priorities included climate change impacts, pest and disease management, sustainable water use, wastewater discharge projects, new hop varieties and soil health. Meanwhile, Bottleshare Grant Programs has provided emergency assistance to the craft beverage industry for at least 29 breweries, six state guilds and 175 individuals. Bottle Share Inc. is a charitable organization founded by Christopher Glenn and based in Kennesaw, Georgia that supports industry workers and businesses facing adversity and hardship. Other resources to bookmark for potential funding needs in the future are the Michael Jackson Foundation for Brewing & Distilling and the Pink Boots Society New Mexico State University Course for Brewing & Distilling in Belgium and the Netherlands.

Pros and Cons of Grant Funding

  Many breweries and distilleries are unaware of grant opportunities that exist due to limited promotion and public awareness but could very well be eligible to submit an application. Yet there are benefits to seeking a grant rather than pursuing other funding avenues. First, grants do not have to be repaid, which is a significant advantage over applying for a loan. However, grant applications can be time-consuming, and eventually getting the money in hand can take a substantial amount of time. Grants don’t typically cover overhead, indirect and administrative costs, yet each opportunity is unique and may focus on a specific project or equipment upgrade. There are not nearly as many grant opportunities in the craft beverage industry compared to the nonprofit sector. But applying for grants can get your business onto the radar of major corporations and foundations, thereby boosting your networking power with local community leaders and influencers.

  Some of the biggest names to know for brewery and distillery grants are the Brewers Association, distilling associations like the American Craft Spirits Association and American Distilling Institute and the USDA. State departments of agriculture and restaurant organizations also provide grant funding for the industry, as well as private donors who have personal interests in craft beverages and major corporations with a commitment to niche philanthropy.

Applying for a Brewing or Distilling Grant

  A basic internet search can lead you to current and open grant opportunities for breweries and distilleries, although the funding pool is limited, and the competition can be tough. Craft beverage producers should consider getting involved with industry associations and subscribing to publications and mailing lists to be among the first to know about grant opportunities and deadlines.

  Aside from funding in response to disasters and emergencies, one of the biggest trends in craft beverage grantmaking is encouraging diversity. These grants often help educate and employ women, people of color and members of the LGBTQ community in this industry. Promoting sustainability and eco-friendly practices is another current funding trend among grantmakers that care about craft beer and spirits.

  Although some grants have rolling deadlines and chances to apply at any time of the year, most opportunities have a series of established dates that require applicants to pay close attention. Look into the times when grant deadlines occur before your business even needs funding, just for informational purposes, and mark deadlines on a calendar in case an unexpected need should arise.

  If your business is eligible for a grant, read the guidelines closely, including the best ways to contact the funder for follow-up after you submit your materials. As you review grant proposal guidelines, important details to pay attention to include the budget year dates, duration of funding, funding policies and submission process. Use online applications whenever possible to expedite your application, and be specific in your application concerning the project budget and how you will meet measurable goals. In many instances, it is best to introduce your business and an initial description of what you need to a funder before submitting any official paperwork, either by telephone call, general inquiry email or by scheduling an in-person meeting. And if your business is fortunate enough to secure a grant, keep up with reporting requirements in good faith to set yourself up for potential support in the future if and when you might need it.

  Grants are just one piece of the puzzle to keep a brewery or distillery operational and successful, but they are oftentimes an underutilized asset that might be just what you need to get by or take a new direction with your beverage business.

The Do’s & Don’ts of Cleaning Barrels

Cyndi
machines cleaning alcoholic barrels

By: Cheryl Gray

Knowing precisely how to clean and sanitize a barrel means avoiding certain disasters, save time and protect the product.  Cutting corners means inviting contamination, a surefire way to destroy an otherwise saleable product. By contrast, proper cleaning and sanitizing ensure a pristine, bacteria-free barrel, which means the product inside is safe from unwanted microorganisms and undesirable flavors. At the same time, the barrel enjoys a longer life. Experts say that maintaining barrels through proper cleaning and sanitizing also contributes to avoiding leaks, another costly product loss.

  Since barrels are one of the most expensive beverage production costs, it pays to know companies that understand their unique cleaning and sanitizing requirements. Among them is California-based  STEAMERICAS, whose Optima Steamer™ was born out of a unique process of reimagining old technology. Company owner Yujin Anderson touts the multiple benefits of that innovation.

  “The Optima Steamer™ was born over 15 years ago when we saw the need for a machine that generated much less waste water runoff than a typical pressure washer. We saw the hot water pressure washer market audience who had trouble with wastewater runoff and identified that dry steam machines were mostly only available in the residential or professional size or performance level that can’t keep up with continuous all-day use.

  My father, who was a marine boiler engineer, basically altered a commercial/industrial-sized pressure washer and retrofitted it with a patented dry steam boiler to give customers who asked for hot water pressure washers that are compatible with winter usage. The Optima Steamer™ is a revolutionary machine that increases water temperature beyond the 212 degrees Fahrenheit boiling point to create saturated and super-heated steam with minimal preheating time. The result is a highly effective, sanitizing methodology that destroys harmful microorganisms and reduces water usage from an average of three to four gallons a minute to 0.08 gallons without introducing any chemicals.”

  Anderson explains that people oftentimes confuse cleaning a barrel with sanitizing it. However, there is, she says, a definite difference.

  “Sanitizing and cleaning are two different processes. While you can measure cleaning results with naked eyes, you can’t with sanitizing. Hence, you may easily skip the sanitizing process. This is a big mistake. Barrels, especially, have pores, and microorganisms unaddressed can spread beyond the surface level, which is very challenging to remove.

  For sanitizing, you can introduce a choice of chemicals (including chlorine, acid and ozone) that dissolve in water and have the liquid in contact with the barrel’s interior surface. However, the recent trend is to avoid chemical treatment to avoid altering the taste and quality of the product. 

  Dry steam is undoubtedly the most effective way to control microorganisms on most materials, especially barrel staves. Steam generators can reduce both water (steam uses only one to two gallons per barrel) and energy use, and they are helpful for general cleaning in addition to barrel cleaning. Dry steam is saturated steam, where over 97 percent of the water has been converted into a gas, rather than wet steam or boiling water like plant steam.”

  Anderson describes how dry steam goes beyond the surface interior of a barrel to destroy harmful bacteria that the naked eye can’t see.

  “Dry steam penetrates into the pores of barrels to kill pathogens, like Brettanomyces, Zygosaccharomyces and other microorganisms, even those that can survive water heated to 160 degrees. For example, most brewers use sanitization of some sort, but some brewers aren’t taking advantage of implementing a dry-steam method. Instead, many use plant steam, which is unsaturated wet steam or technically a liquid. Plant steam doesn’t reach lethal temperatures to kill bacteria inside barrels. Dry steam penetrates a quarter-inch deep into wood pores. It penetrates deeper than hot water or chemicals and with better efficiency at removing sediments deposited in the pores.”    

  Anderson adds that the dry steam method deployed by the Optima Steamer™ also saves time and money.

  “Barrels can be in dry storage or wet storage. Both involve sulfur dioxide in the form of gas (dry) or diluted in water (wet). After storage, barrels should be rinsed, rehydrated (swelled), checked for leaks and drained before use. Using water, the rehydration process takes 60 gallons of water and 48-plus hours. Dry steam can shorten this process down to under 30 minutes and one to two gallons of water. Best of all, rehydration and sanitizing happen at the same time with dry steam.”

  Being in California means that STEAMERICAS is near wine country, where the company found its initial clients. Breweries and soft drink companies followed. Anderson says that dry

steam offers distinct solutions for each client.

  “The biggest selling point of dry steam may be different for each clientele. For example, for distillers and craft brewers, the main reason for dry steam is to rehydrate barrels, vats and foeders as quickly and efficiently as possible. For winemakers, controlling unwanted microorganisms, such as Brettanomyces, is the biggest reason they may introduce dry steam to their facility. For larger facilities, typically saving time while the food safety standards are met is the most important.”

  Many companies that source barrels for clients also recommend dry steam as a preferred method of sanitizing their products. One of them is Northeast Barrel Company, located in Lansdale, Pennsylvania, northwest of Philadelphia. The barrel-sourcing company has a second showroom in Salt Lake City, Utah, serving its West Coast customers. Its product line includes previously used barrels and racks, bungs, foeders, tanks and even barrels used exclusively for decor.

  While most of its wine barrels are sourced from wineries throughout California, Northeast Barrel Company travels around the globe sourcing other craft beverage barrels previously containing whiskies, tequilas, bourbons, rums, mezcals and brandies from countries that include Mexico, Nicaragua, Spain, Portugal and Jamaica, to name a few. Since the barrels have been previously used and have housed all sorts of beverages, the importance of properly cleaning and sanitizing them is tantamount to the company’s existing and prospective clients. Co-owner Pat Tramontano says that dry steam is the way to go.

  “We have a dry steam generator that we use on our barrels. The generator pressurizes the barrels with steam. This not only kills any present bacteria but allows us to check for leaks. It is an excellent tool, and I recommend it to anyone in the beverage industry with a large-scale barrel program.”

  Black Swan Cooperage is a family-owned barrel-making enterprise located in Northern

Minnesota and founded in 2009. The company creates hand-crafted barrels for distilleries, breweries and wineries across the United States. Black Swan Cooperage makes its custom barrels in a variety of sizes, ranging from five gallons to 53 gallons, with multiple charging and toasting levels. The cooperage also promotes its barrels as having staves that are the largest patented surface area of any staves currently available.

  Co-founder and owner Heidi Korb learned the business of crafting barrels from her father, Russ Karusch, a master cooper. Among those lessons is how to properly clean and sanitize barrels.

  “Ideally, if you can plan for your barrels to not ever sit empty, you will have fewer problems. However, this is likely not realistic for all. If you properly clean your barrel between uses, this will dramatically increase the life of your barrel. If a barrel is well kept, it can be used indefinitely. It will eventually no longer add flavor but will still be good to hold and age spirits. If a barrel is not properly stored and kept clean, it can go sour and start to grow mold. Once this happens, usually no amount of cleaning and sanitizing can save it.”

  In short, those who create, source, clean and sanitize barrels agree that shortcuts do not lead to a long life for one of the most expensive costs in craft beverage production. Rather, those shortcuts can destroy not only the barrel but the entire contents inside. Experts say that a clean and sanitized barrel is best achieved with dry steam, a growing industry standard used to ensure that barrels are absent from the destructive microorganisms that can escape any other cleaning and sanitizing method.

A Key Metrics Dashboard Just for Beer Wholesalers

Cyndi

At last, a key metrics dashboard, just for beer wholesalers.

Beer Business Finance and GP Analytics have combined forces to create a new software tool that takes the guesswork out of which key metrics to track to achieve your financial goals.

This new analytical tool is custom developed exclusively for beer distributors.

It provides real time data on the most important numbers of your beer business.

This tool will allow you to link key metrics from every department to top line company financial objectives. This creates alignment and synergy, so that everyone is driving the business towards the same financial outcomes.

Do You Need a Financial Metrics Dashboard for your Beer Wholesaler Business?

We are accepting a limited number of Founding Members to help us beta test and develop this new software tool.

Founding members get first access to analytical tools, may provide input to guide the future development of the dashboard tools, and a receive a Founding Member Discount off the standard price, which is good forever.

Are you interested in learning more about this new analytical tool? Email me at Kary@BeerBusinessFinance.com to book a time to talk.​

The Data Problem

Wholesaler business data lives in many different places: route accounting system, payroll software, Excel spreadsheets, etc.

It is difficult and time consuming to extract, combine and analyze the information in order to make timely business decisions.

The Data Solution

Our software solution aggregates data from multiple platforms and automatically combines it into an easy-to-read dashboard.

Track only your most important members in real time with simple dashboards. Metrics that align department KPIs to the overall company financial and operational objectives.

How it works…

The software integrates seamlessly with your other applications to aggregate data in real time.

The key metrics dashboard utilizes historical performance along with industry benchmarks to provide a 360-degree view of the financial results your business.

The beer wholesaler dashboard includes our standard set of key metrics for sales, gross profit, operating expense, and profitability, along with inventory, accounts receivable, and cash flow metrics.

You’ll get real time data for only the most important numbers of your beer business.

Ready to get started?

We are accepting a limited number of Founding Members to beta test the new wholesaler dashboard software.

Founding members get first access to analytical tools, may provide input to guide the future development of the dashboard tools, and a receive a Founding Member Discount off the standard price, which is good forever.

Tracking, measuring, and monitoring the most important numbers in your business will transform your financial results.

The Indemnification Clause: A Lease Landmine?

Cyndi
man typing lease agreement contract
Lease Renting Contract Residential Tenant Concept

By: Brian D. Kaider, Esq.

Most breweries and distilleries are built on leased property.  Negotiating the lease can be a daunting task, as these contracts are commonly over fifty pages long and full of dense legal language that can be difficult to understand.  Additionally, many landlords have “standard” leases to which they expect the tenant to agree with minimal changes.  Aside from definitions of rent and the duration of the lease, many tenants simply accept the remainder of the lease, as is.  More savvy tenants may negotiate issues such as the right to penetrate walls or ceilings for equipment ventilation, the use of outdoor space/common areas, or the state to which the premises must be restored following termination of the lease.  But, there is a section in virtually every lease that is typically ignored and has important consequences: the “indemnification clause.”

What is an Indemnification Clause?

  In the simplest terms, an indemnification clause identifies who is responsible if a third party (e.g., a customer) is injured on or around the leased property.  Most often, the injury refers to a physical injury, such as when a customer slips and falls on a wet floor.  The language of the clause typically provides that in such a case, if an injured customer sues the landlord as a result of the fall, the tenant agrees to compensate the landlord for any expense associated with the claim.  This makes sense, because the landlord cannot be expected to supervise every action of the tenant and if the tenant allows a hazardous condition, like a wet floor, to exist, the landlord should not be held responsible for the tenant’s negligence.  Of course, circumstances are often not as simple as this example and there is a lot of gray area in these clauses that may not be immediately apparent.

  After reading this article, it may be tempting to try to negotiate taking the indemnification clause out of the lease entirely.  First, it is unlikely any landlord would agree to the deletion.  Second, it would actually cause more problems that it solves.  Absent the indemnification provisions of the lease, the landlord could still file a legal claim against the tenant under a variety of legal theories to recover any damages they suffer as a result of the third-party claim.  The better course is to negotiate the terms of the indemnification clause to minimize exposure of the tenant and ensure that the terms are clear and unambiguous.

The Guts of an Indemnification Clause

  The typical indemnification clause is composed of very long sentences with multiple subparts that make it difficult to even read, much less understand.  The following is a breakdown of some of the key terms.

  Definition of the Parties – “Landlord Parties” and “Tenant Parties,” or similar terms are defined to include each respective company along with their owners, officers, directors, shareholders, affiliates, agents, employees, representatives, etc.  In other words, if an injured customer sues the owner of the landlord company, this definition includes the owner as an indemnified party, just as if the customer had sued the landlord company, itself.

  Required Actions – Every indemnification clause will use some or all of the following terms: “indemnify,” “defend,” and “hold harmless.”  While at first glance these terms would appear to mean the same thing, they are very different and which terms are used has important consequences.  In particular, “indemnify” and “hold harmless” seem similar and, in fact, the differences between them varies from state to state.  In general, “hold harmless” means that the landlord will not be held liable for any injuries or damages caused by the tenant.  In other words, if the tenant is sued by an injured customer, tenant will not blame the landlord or try to bring the landlord into the case as a separate defendant.  “Indemnify,” on the other hand, means that if the landlord is sued by the injured customer, the tenant agrees to reimburse them for costs incurred as a result of the lawsuit.  “Defend,” however, means that tenant is responsible for defending the landlord from lawsuits.  That word in the clause should then trigger other questions, such as, who chooses the counsel to defend the landlord? Does the landlord have the right to approve the proposed counsel?  And what happens if there is a conflict of interest between the landlord and tenant being represented by the same counsel?  Those issues should all be addressed in the indemnification clause.  If the word “defend” is not in the clause, though, that means the landlord is free to choose its own counsel to represent them and tenant is still responsible for the landlord’s legal fees, meaning tenant may be paying two different law firms to fight the same case.

  Scope of Covered Claims – The clause should have some description of the types of expenses that are covered.  In some cases, it is extremely broad, such as “any and all costs suffered by or claimed against landlord, directly or indirectly, based on, arising out of, or resulting from tenant’s use and occupancy of the premises or the business conducted by tenant therein.”  The description may be limited to only physical injury, death, or damage to property.  In some cases, it may refer to “reasonable claims.”  Of course, what is reasonable is a subjective question and likely to spur additional legal battles.  In some cases, the lease may require the tenant to warrant that they do not and will not infringe on another party’s trademark rights.  The tenant should always try to limit the scope of such terms to only “knowingly” infringe or infringing “known” trademark rights.  Otherwise, it would impart on the tenant an obligation to scour the earth for all trademarks that could possibly be asserted against it; an impossible task.

  Scope of Covered Property – It should be clear exactly what property is covered by the indemnification clause.  Often a lease will make a distinction between the “Premises” and the “Property.”  Premises usually refers to the actual unit that the tenant is renting, whereas Property refers to the entire parcel of real estate owned by the landlord, which may include other rented units and common areas.  Obviously, a tenant should not be required to indemnify the landlord against something done by another tenant in a separate unit.  But, common areas are much more tricky.  Often, either explicitly in the lease or by oral agreement, a landlord will permit a brewery tenant to occupy common areas, including parking lots, to serve beer and/or allow customers to eat and drink.  If someone drops a glass in the parking lot and the brewery does not clean it up promptly and a customer is cut by the broken pieces, the indemnification clause should protect the landlord if the customer sues.  But, if the landlord is responsible for snow removal in the parking lot and fails to adequately perform its obligations and a customer slips and falls when getting out of her car, the tenant will want such incidents to be outside the scope of indemnification.  If the clause is not worded carefully, that distinction may not be recognized by a court.

  Carve-Outs for Landlord’s Activity – This raises the broader issue of carve-outs in the indemnification clause for landlord’s activity that contributed to the injury.  For example, if the landlord was responsible for the build-out of the premises and was negligent in the installation of the electrical system, then if a customer is electrocuted, the tenant should not be required to indemnify the landlord against such latent defects.  Even then, the choice of wording in the clause is important.  Some leases only carve out “gross negligence,” “recklessness,” or “willful misconduct.”  In that case, if the injury is caused by landlord’s “ordinary negligence” that does not rise to the level of gross negligence, the tenant would still be required to indemnify the landlord against such claims.  It is worth noting, however, that some states hold such clauses to be against public policy, void, and unenforceable.  Those cases, however, often turn on whether the part of the property in question was under the exclusive control of the tenant.

Conclusion

  Landlords generally provide the first draft of a commercial lease and, not surprisingly, they are drafted heavily in favor of the landlord.  While a tenant’s focus may be on maximizing building improvement allowances and minimizing rent, they should review the entire lease thoroughly, and preferably with assistance from an attorney knowledgeable about the beverage industry.

Often, the landlord will be in a position with greater bargaining power than the tenant, but the law will view both parties to a commercial lease as being sophisticated enough to negotiate the terms of the agreement they consider important.  A court is unlikely to be persuaded that the tenant did not understand the terms or had no choice but to accept them.  The indemnification clause should clearly set forth the responsibilities of each party in clear and unambiguous terms, including: the covered property, the scope of covered claims, what actions the tenant is required to perform in the event of a complaint, and what landlord activity is excluded from the indemnification.

  Brian Kaider is the principal of KaiderLaw, a law firm with extensive experience in the craft beverage industry. He has represented clients from the smallest of start-up breweries to Fortune 500 corporations in the navigation of regulatory requirements, drafting and negotiating contracts, prosecuting trademark and patent applications, and complex commercial litigation.

Island Brands: Leveraging Technology for Success

Cyndi
4 beer cans soaked in ice cooler

By: Nan McCreary

  When entrepreneurs Brandon Perry and Scott Hansen launched Island Brands USA in 2016, their goal was to create a mainstream, easy-drinking beer with the highest quality ingredients. That was challenging given the hyper-competitive landscape and complexity of the three-tier system. But they were undaunted, and through ultra-strategic planning using branding and technology, they found a niche among “thrill-seekers, outdoor enthusiasts, and beer drinkers everywhere.”

  By 2020, the Charleston, South Carolina company saw combined sales of its two existing brands—Island Coastal Lager and Island Active—grow 70% to $1.9 million in sales, according to IRI data. In 2021, sales grew 99% to $4.2 million. Today, Island Brands is the fastest-growing super-premium domestic beer in the Southeast U.S. and is poised to take an even bigger bite out of the competition this year.

  For Perry and Hansen, the journey began on a “rum-soaked” trip to Cuba, where they discovered that the only beer available was of limited quality. This inspired them to make better beer more accessible to Cubans, and they began working on a recipe for an all-clean, easy-drinking brew to build a lifestyle brand. 

  “They decided from the beginning to only use the finest ingredients,” Island Brands’ Director of Operations Valerie Williams told Beverage Master Magazine. “Their first beer, Island Coastal Lager, was made with only water, malted barley, hops and yeast—no fillers, no adjuncts—to create a crisp, clean, crushable lager that had only 137 calories and an ABV of 4.5%. They contracted with a brewery in Florida to make their product, then they hit the road and started selling it.”

  Their success was immediate. “Publix Super Market, the largest and fastest-growing employee-owned supermarket chain in the United States, loved it in a big way and started putting it in every store,” Williams said. “Now we have multiple products in 1,250-1,300 stores.” 

  In 2020, Island Brands launched its second beer, Island Active, a crisp and clean premium light lager. Developed as a “Better for You” beer, Island Active is only 88 calories with an ABV of 4.2% and, like Island Coastal Lager, is made without fillers or preservatives. These flagship products quickly set Island Brands apart.

  According to Williams, Island Brands’ beers are fully pasteurized and have no fillers that could cause the beer to “go skunky,” giving them a shelf life of 365 days, as opposed to 110 for most beers.

  Riding on this wave of success, in November of 2020, Island Brands launched a crowdfunding campaign with StartEngine, where everyday people can invest and buy shares in startups and early-stage companies. Within 34 days, Island Brands raised its maximum funding goal of $1.07 million. These investors, called the Islander community, are on the front line of Island Brands’ marketing objectives. As a community, they help support the company’s brand. In turn, they receive discounts on merchandise, beer, events and travel. 

  “The key to our success has been our following,” Williams told Beverage Master Magazine. “Crowdfunding was huge in getting us started. It provided a way for folks to engage with us and support our brand to help us grow.”

  The Islander community are not just advocates for the beer: They also promote Island Brands’ lifestyle partners, including merchandise from Island Supply Company, guided Adventure Experiences and the flagship Island Cabana Bar in Charleston. This diversification is specifically designed to help reach Island Brands’ target demographic.

  Rounding out Island Brands’ marketing efforts is a partnership with Carnival Cruise Line to serve Island Coastal Lager to 14 million passengers as their ships navigate the world. The partnership is a perfect fit for Island Brands’ founders, whose approach to life includes a love of travel, the outdoors and an appreciation of high-quality beers. “Our partnership with Carnival has been enormous,” Williams said. “It makes sense to have our beers on a cruise. Passengers come off the boat and start asking for our products. When it’s available in their market, our Islanders make sure it’s kept in stock wherever they shop.” 

  While Islands Brands has built brand recognition, they have also employed data-analytics strategies to get their branded products in front of their target market. The key to this is digital technology. “Technology is the cornerstone,” Williams said. “We are a small company—there are only 18 of us—and with distribution in seven states, we have to sell by proxy. Our relationship with our middle tier, our distributors, is critical to us. To provide them with what they need and when they need it, we rely on data analysis, whether it be to evaluate market trends or determine inventory needs.” 

  According to Williams, when Perry and Hansen founded the company, part of their business plan was to use technology to collaborate with the middle tier and the consumer. For that reason, they assembled a team with over 100+ years of combined experience that includes technology, marketing and consumer packaged goods.

  “We’re all technical,” Williams said. “We have two data analysts on our team, and they’re constantly digging into data and identifying potential issues so we can address them.”

  To facilitate operations, this data—including branding and marketing tools—is shared across the board with internal teams as well as external collaborators.

  Island Brands ‘ use of data analysis has been a lifesaver in today’s market, where supply chain issues have plagued the industry. “Our biggest enemy,” Williams said, “is being out of stock. By providing data and guidance to wholesalers, we can anticipate volumes and ensure that there is no single point of failure in the supply chain. We have multiple vendors, and if one doesn’t have availability, we go to another one. If we have shipping problems, we optimize our loads or call on multiple logistics providers to potential solutions. Strategy plays a big role. You can have the best liquid in the world, but if you can’t get it on the shelves, then you’re dead.”

Island Brands’ marketing strategies have paid off. In 2021, the company sold 160,000 cases in seven states: Tennessee, Alabama, Georgia, North Carolina, South Carolina, Florida and Virginia. Beers are available at Walmart, Costco, Publix and other southeastern grocery stores. But it’s not just consumer demand that has led to this success: It’s strategic planning, with growth carefully timed and targeted. 

  “We analyze data on items that are growing or not growing in certain territories and work with our wholesalers to collaborate and strategize,” Williams said. “When we bring a product to our wholesalers, we ask them to help us grow in their territorial footprint, and, at the same time, ask how we can help them get the items they need to fill voids in their portfolios.”

  Energized by success—and demand determined via data analysis—in 2021, Island Brands introduced two new products: Island Lemonada, a balance of the finest premium beer and freshly-squeezed lemonade, and Southern Peach, a combination of sun-ripened peaches, fresh-brewed Southern tea and premium beer. Like Island’s flagship brands, these are flavorful beverages without added fillers, made for easy drinking with an ABV of 4.5%.

  In 2022, Island Brands will enter the Flavored Malt Beverage category, one of the most rapidly growing segments in the beverage industry. Created under the CRUSH brand, flavors include Lime Margarita, Strawberry Daiquiri and Tropical Punch. “These will not be super-premium beverages,” Williams told Beverage Master Magazine, “but will still be better for you than others out there, as they have natural flavorings and less sugar than competitive brands. ABV will be 10%.”

  Beyond that, Island Bands has set its sights on expanding distribution (they will add Mississippi and Louisiana in 2022), opening more Cabana Bars in the Southeast, adding another brewery for contract production, and increasing its crowdfunding goal (now at $5 million). According to Williams, the company expects to double its sales in 2022.

  The key to success, she said, is leveraging technology to keep up with the growth. “Behind all of this expansion, we have to make sure we can honor our retail commitments,” she told Beverage Master Magazine. “We will use our data to determine when we can launch, where we can launch, and how much we can launch.”

For more information on Island Brands USA, visit www.islandbrandsusa.com

10 Ways to Maximize Beverage Sales Through Every Spring & Summer Holiday

Cyndi
people drinking and celebrating

By: Raj Tulshan, Founder of Loan Mantra

The arrival of spring means sunshine, warmer temperatures, gatherings and lots of drinking. This often involves celebrating with a cold pint of beer, glass of wine or festive cocktail. Special days are a great time to attract crowds planning to connect with family and friends at area restaurants and pubs and to increase beverage sales.

  More than 335,000 gallons of tequila are consumed in the U.S. during Cinco de Mayo fiestas. An estimated 92 million Americans take their moms out for a meal for Mother’s Day, making it the most popular day for restaurant dining. People don their big hats and spring finery, while sipping Mint Juleps at Kentucky Derby-themed parties. Then it’s time to toast to dads on Father’s Day, celebrate graduations, for bachelor and bachelorette parties and bridal showers. So, how can you maximize beverage sales all throughout these warm weather celebrations? Here are 10 tips:

1.   Spring into Theme – Jump into action with some tropical themed drinks. Serve a refreshing Cherry Blossom, Tequila Honeysuckle, or a Lemon Drop for festive seasonal celebrations and, of course, don’t forget a Mint Julep for Kentucky Derby parties. Source fresh ingredients whenever possible and use fun garnishes, like edible flowers. For a Spring Fling, use sorbet as a drink ingredient, with fancy glasses and pastel cocktail napkins. Get patriotic with red, white, and blue themed drinks for Flag Day, and consider garnishing the drinks (or the tables) with cute little sparklers. Throw a tropical party and encourage employees and guests to wear Hawaiian shirts and leis, with mai tai or pina colada specials. Have a taco and tequila party for Cinco de Mayo and decorate with bright colors and a cactus or two. What about hosting an ice cream party with boozy milkshakes on a hot summer night social? The possibilities are endless, so be creative!

2.   Partner with the right vendors – Many beer, wine and liquor vendors will provide plenty of marketing materials to help restaurants and bars drive beverage sales. They’ll often give you free table tents, branded coasters, and other materials to promote their brands. Some vendors will go a step further and provide give-away items, like branded pint glasses, t-shirts, or baseball caps for customers that order their products. This is an easy way for you to boost excitement and sales – and a fun incentive for your guests to enjoy.

3.   Get your financing in order – Restaurants and bars have, understandably, had a tough two years, due to the COVID-19 pandemic. And now the COVID fallout includes a trifecta of major challenges, including soaring prices on food and beverage supplies, ongoing supply chain disruptions and continued staffing shortages. Be sure that your financing is stable enough to sustain your operations, especially amid this turbulent period and as you recover from the pandemic hardships. If you need a business loan, talk to an expert that can advise you about which path to take. There are many viable options available to help your business through the short-term or for your longer-term needs.

4.   Get the funding for your marketing needs – You might have the most amazing place that serves the best food and drinks in the area, but if people don’t know about you, you won’t maximize sales, profits and other key metrics. Elevate your marketing efforts to generate awareness and excitement and drive traffic and sales. Be sure to have a professional, easy-to-navigate website with updated menus, drink lists, and specials. Become more active on social media and buy online ads that target your priority populations. Host special events and tastings. Send out emails about upcoming events and other incentives. If your budget is strained, consider a loan to boost your marketing efforts and attract more attention.

5.   Host VIP tastings. Boost customer loyalty with VIP tastings – Valued customers will feel special to be part of an “elite” event, so make these tastings feel exclusive and important. Send out VIP invitations. If your budget allows, you can go all-out with a red carpet and champagne. Or create a different vibe with beer flights, a wine tasting or a sampling of different types of whiskey. Ask your vendors to provide experts to discuss their products and educate your guests about the types of beer, wine, or liquor they offer. Your vendors might provide VIP gift bags or other SWAG, as well.

6.   Create a comfortable atmosphere – Be certain that your guests feel comfortable at your establishment, whether that means continuing to social distance during higher COVID transmission periods or keeping plastic partitions up for a while longer. Guests want to see “proof” that your restaurant or bar is still following strict cleaning and sanitation protocols, so place hand sanitizer dispensers around the facility and continue to sanitize tables, bars and other high-touch locations frequently. Have comfortable seating that will make people want to linger and have another drink. Use appealing soft (not harsh!) lighting and play fun music. Also, consider what would appeal to your target demographics. Men will want the big game on your TVs. A bachelorette party will want a fun waitstaff that will dare them to do shots. And guests appreciate some creative decorating for the holidays, whether that’s flowers and champagne flutes for Mother’s Day, or big hats and roses for Derby Day (also called The Run for the Roses).

7.   Provide outdoor seating – One of the silver linings of the pre-vaccination landscape was that many restaurants and bars added outdoor seating, which customers loved. Now that spring is finally upon us, people will welcome the opportunity to eat, drink and celebrate outdoors. Set up tables and chairs outside. Consider adding fire pits or offering blankets on chilly evenings. Offer boozy popsicles or milkshakes to boost beverage sales when the weather gets warmer. String up pretty lights. Plant colorful flowers. Make your outdoor area feel lovely and inviting.

8.   Offer special incentives – Promote special deals around the spring holidays, like “Moms drink for free on Mother’s Day” or “Dads get a free beer for Father’s Day.” Promote specials on tacos and margaritas for Cinco de Mayo. Offer Mint Juleps and tiny sandwiches for a Kentucky Derby watch party. Offer discounts on your special spring drink menu. Consider discounts on beer buckets for the spring or 2-for-1 drink specials on a typically slow weekday.

9.   Train your staff about the drink specials – Make sure your staff are educated about your drink specials and encourage them to upsell to your guests. This is especially important when you add new seasonal cocktails to your menu or if you’re having special holiday-themed drinks. Be sure your employees know what each drink tastes like, how it’s made, and what it pairs well with. Your staff are your best ambassadors. The way they describe your menu and drink specials will matter. In fact, it will have a direct impact on your sales.

10. Be active on social – Social media can be a very effective way to incentivize your events, spotlight drink specials, and highlight fun plans and celebrations for the season. Post about what you’ll do to treat soon to be brides well for bachelorette parties (Champagne toasts! Bloody Mary specials!), so they’ll come to your establishment instead of your competitors.’ Feature different staff members raving about their favorite spring drink or talking about the upcoming events or parties that you’re hosting. Share photos of beautiful spring drinks garnished creatively. Showcase that your place is the place to be this summer, for any seasonal celebration.

  Spring is in the air and there are so many opportunities to celebrate. There are also so many opportunities to promote your establishment, drive traffic and boost your beverage sales. Try these 10 tips to increase traffic to your establishment, customer loyalty and profits.

  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

  Loan Mantra is a financial services company that helps level the playing field for small and medium businesses to gain financing by providing a one-stop portal, paperless application process and personal service. With offices in New Jersey, Charleston, SC and New York, our only success is through your success. This means that our attention, purpose and intention are all focused on you, our client. We are your ally to overcome obstacles, bringing peace through uncertain times to achieve your highest goals and aspirations. Your friendly, responsive agent will listen respectfully and service your account actively through one of three locations in. We speak your language whether it’s English, Spanish, Hindi, Bengal, Hospitality, Laundry or Manicure, let us help you today. Connect with us at www.loanmantra.com, 1.855. 700.BLUE (2583)

Trends in Beverage Packaging to Look Out For in 2022

Cyndi
beverage stack in a stall

By: Preston Geeting

Building healthy lives entails nourishing our bodies, both mentally and physically. As such, the beverage industry will continue to be an essential component in improving the health of societies across the globe for as long as we call it home. More presently, however, the products we choose to consume from brands in today’s world often reflect our own personal values.

  Packaging plays a huge role in how impactful a product is on its target audience. Much of the information regarding what is considered healthy or not is often presented on the packaging of consumable beverage products, so their packaging must clearly communicate how it reflects the values of individual consumers. This makes the packaging industry a crucial component of the beverage industry.

  According to MarketWatch, the beverage packaging industry, in particular, is expected to reach a value of $142.28 billion by 2023 at a CAGR of 4.17%, a significant growth from $111.36 billion in 2017. This growth can be credited to the constant demand for groundbreaking, trendy beverage packaging across both industry sectors of alcoholic and non-alcoholic beverages.

  Each sector serves as a quintessential example of the beverage industry’s permanent dependency on the packaging industry, fostering a crucial and long-lasting partnership between the two. Thus, companies must now shift their focus on the ever-changing trends within both industries, while simultaneously aligning with the demands of consumer markets to maintain a competitive edge.

  A product’s packaging often complements its brand image and desired messaging, empowering a brand to sell not merely a product, but a lifestyle to its target audience. In the era of 2022, with headlines abuzz with topics encompassing Web 3.0, the Metaverse, and other digital innovations, product packaging that may be deemed ‘Instagrammable’ or trend-worthy is far more appealing to consumers than those perceived as more “traditional” or mundane.

  In the beverage industry, packaged products often reflect what value the brand can add to a consumer’s life, and how that value complements or enhances their current lifestyle. What makes your product unique enough to stand out on the shelves, compared to hundreds of others, relies almost entirely on the impact of its packaging.

  Additionally, in the luxury beverage space — such as high-end alcohol brands — product packaging is the first element consumers interact with showcasing why the product is desirable. Nightclubs and bars are excellent examples of this. In these settings, the most sought-after alcohol purchased is typically the one that stands out the most and similarly emulates a high-class, sought-after, yet rarely-obtained lifestyle.

  In the case of non-alcoholic beverage packaging, the packaging must communicate why one brand is better than another. This is commonly seen with packaging for companies that sell water. Although water is rarely perceived as little more than a standard beverage, all the details of its product packaging — from visual designs and colors to its sourced location, packaging material, and more — can spell the difference between its sales stagnating or skyrocketing. Other factors listed on the product’s packaging, such as the brand’s sustainability efforts or even the sheer convenience of its packaging, likewise play a key role in targeting specific consumer markets.

  For example, plastic water bottles that have a twist-off top may be less desirable to consumers in comparison to those boasting a sports-bottle style cap. Furthermore, sustainably-packaged water, or reusable metal water bottles, might be more appealing to eco-conscious consumers.

  The trends witnessed within both the beverage and packaging industry are constantly evolving alongside a growing consumer market. These industries must continue to work harmoniously to understand what makes consumers tick. Competition is always intense in the beverage industry, and companies spend immense periods researching competitors, as well as the needs and wants of consumers, to ensure that standards are met through superior packaging.

  Packaging must serve a purpose other than simply protecting products in retail stores or back-of-house storage to be memorable and appealing. The little details are essential regarding a beverage’s packaging, and these seemingly small details can have a significant impact on sales.  With all of this in mind, here are the top ten trends in beverage packaging to look out for in 2022.

1. Biodegradable Packaging:  Biodegradable packaging comprises of biopolymers, which are often found in the cellulose of plants. Since this form of packaging comes from plants, they easily decompose naturally over time in comparison to plastic packaging. Traditional plastic packaging, unfortunately, never decomposes. Instead, it slowly breaks down into microplastics which often wind up in our oceans or, even worse, our food.

  Recently, it was found that microplastics were detected in human bloodstreams. While this hasn’t been directly tied to plastic packaging, single-use plastics — such as those frequently utilized in beverage packaging — have been a significant cause of ocean-dwelling microplastics.

  To combat this, companies like Boxed Water Is Better are taking an active stance in ensuring that their product packaging is decomposable to fight the ever-growing single-use plastic issue; an issue which has also been recognized across various consumer markets. Throughout 2022, expect more beverage companies to release (or, at least, announce) their products being packaged in a similar, more sustainable manner.

2. Internet of Packaging or Smart Packaging:  Internet of packaging, or innovative packaging, comprises the integration of QR codes, smart labels, RFID, and AR/VR into packaging technology. The industry will begin to see the next evolution of packaging personalization through technology, especially QR codes, as adoption rates have soared since the pandemic in 2020.

  An example of this is 19 Crimes, a famous Australian wine company that has become a global phenomenon that works with celebrities like Snoop Dogg to craft fine wines, with each one telling a new story. The bottles of wine are brought to life via AR integration with a mobile app. Once labels are scanned via the app, it tells consumers the tales of notorious criminals through a pop-up video. Several coffee suppliers in the Australian market have begun implementing this method to provide consumers with a story element behind the type of coffee they purchase. This informs consumers who advocate for ethical and sustainable farming practices that the product they purchased aligns with their personal values.

  For another example of this trend, imagine purchasing a bottle of wine as a gift. If the bottle has a scannable QR code, the sender can write a message, and the recipient can see the message enclosed in the app. This eliminates the need to send additional paper cards and advances the gifting process.

  From a design perspective, we will quickly begin to see more minimalistic styles as a direct result of QR codes; if brands design packaging to have a QR code containing all the written content, it eradicates the overwhelming amount of information consumers currently see on packaging. And because product information is often small, making readability an issue, QR codes could also add an element of accessibility.

3. Recyclable Packaging:  Recyclable packaging is similar to sustainable and biodegradable packaging; it helps the environment and appeals to more environmentally-conscious consumers. However, biodegradable packaging merely degrades, whereas recyclable packaging can be reused, making it more sustainable in the long run.

  One new interesting element of recyclable packaging not seen typically is referred to as circular packaging. Circular packaging is forecasted to become an industry trend, as it utilizes a single layer for the packaging, rather than multiple layers, significantly reducing waste in the process. Along with this reduction in waste, circular packaging encourages companies to optimize the materials used in their packaging, maximize and amplify supply, and protect brands while inspiring them to make a significant impact against high-waste packaging.

4. Edible Packaging:  In 2019, London marathon runners made headlines worldwide after news broke that they were provided with seaweed pouches filled with energy drinks, rather than plastic water bottles. This enabled them to consume their water and leave zero waste. While edible packaging may not yet be very common, this example highlights how such a trend can genuinely help niche industries advance and make a difference — both for the environment and consumers.

5. Custom Packaging:  Beverage brands looking to differentiate themselves from competitors are increasingly utilizing custom packaging platforms to meet their needs. These platforms eliminate the physical component of fully-stocked warehouses, offering beverage manufacturers, brand owners, and suppliers with streamlined tools that both align with their marketing initiatives, and efficiently and effectively deliver eye-catching packaging for their products. This simplified process is quickly gaining traction across the beverage industry, providing companies with a one-stop-shop for their custom packaging solutions.

6. Active Packaging:  Active packaging consists of new technological techniques that extend the shelf-life of products, especially in the food, beverage, and pharmaceutical industries. Active packaging works by interacting directly with the packaged product and is designed to eradicate residual oxygen, bringing the product to a level where there is zero-permeation. This trend could lead to increasing the shelf life for beverage products that may otherwise spoil on retail shelves or in warehouses, thus mitigating costs for companies.

7. Packaging Automation:  Packaging automation for the manufacturing of products has witnessed a significant boost through AI. When combined with platforms that can serve as a one-stop-shop for custom and stock package purchasing options, this trend shows how robotics in the packaging industry can turn companies into genuine industry titans like Amazon, which continues to lead in terms of warehouse robotics and automation. Packaging automation enables the e-commerce giant to stay ahead of the game and on top of the retail charts. The same tactics could easily apply to companies in the beverage industry.

8. NFT Integration and Utility:  Non-fungible tokens (NFTs) are one of the fastest-growing trends in 2022, and the beverage industry is leading the way. Penfolds, Glenfiddich, Hennessy, and other luxury brands are now selling NFTs that corresponded to a limited edition physical bottle; the NFT acts as a digital receipt that validates the authenticity of the wine bottles. Many start-up beverage companies, however, are finding ways to leverage this technology with their physical packaging as a marketing tool. From startup Perfy’s customized NFT soda cans, to The Bored Breakfast Club including the famous Bored Apes collection on their packaging materials, NFTs are proving to be a unique way for beverage companies to help promote their brand and acquire a larger portion of consumer markets. 

9. 3D Printing:  3D printing has become cheaper for companies to prototype their packaging designs, materials, and even manufacturing machines. 3D printing boosts packaging designs by removing the typical challenges packaging designers face. Some of these challenges tend to include the need for multiple prototypes (which generate additional waste), fewer resources and materials to source prototypes, as well as reduced costs during the packaging design stage. This evolving trend streamlines the design process, and can enable beverage manufacturers and suppliers to conduct more in-house prototyping with their packaging without the presence of a middle man.

10. Nanotechnology:  Regarding the beverage industry, nanotechnology in the form of nanocoating or nanosensors is most commonly used. Nanotechnology-enhanced packaging reduces microbial bacteria and can help improve the quality of the product, especially in water.

  Overall, each of these trends holds the potential for companies within the beverage industry to successfully outgrow their competitors, and each is deserving of careful consideration when designing packaging solutions throughout the remainder of 2022. In a market that is as ever-changing as it is necessary, it is imperative that brands stay one step ahead, understand the true importance of these trends, and implement them accordingly.

  Preston Geeting is a Co-founder of Packform. Along with Philip Weinman and Peter Williams, he recognized the opportunity to transform the antiquated packaging industry with innovative technology, creating new service levels, better customer experience, and more significant opportunities for all involved. As of 2020, Packform officially became the fastest-growing packaging company and won the gold International Stevie Business Awards for Technology Startup of the Year.

Efficient and Sustainable Hops Ensure Creative Craft Brew Hoppy-ness  

Cyndi
2 bottles of hospteiner

By: by Gerald Dlubala

Sustainability is at the forefront of brewing in general, and it’s a focus point in each specific aspect of the brewing process,” said Doug Wilson, Director of Sales and Marketing at Hopsteiner, recognized as one of the largest global vertically-integrated hop growers and distributors in the world. “The sustainability mindset naturally carries over to a brewmaster’s ingredients, including the hops they choose. Likewise, craft brewers need successful and sustainable hops to replicate their beer offerings. Fortunately, we have experienced a quick rebound in crop growth and availability as hop growers after the recent heatwaves and drought that proved harmful to many hops, malt and barley growers. That rebound, combined with the general open-mindedness of both craft brewers and craft beer drinkers, lends itself to a successful and sustainable relationship between brewers and hop growers.”

  Hopsteiner utilizes a genome breeding program that is molecular marker-assisted, identifying the key and desirable traits they want available in their hops. The hops are, in turn, bred to be stronger, more resistant, and ultimately, more efficient and sustainable. For example, Hopsteiner identified the powdery mildew resistant component in hop strains and, through selective breeding, now offers those popular hop varietals with bred-in powdery mildew resistance traits.

  “Brewers look for a couple of things in their hop provider. Usually, it centers around cost savings and sustainability. Sustainability means new agronomically superior and disease-resistant varieties requiring less spraying and fertilizing, ultimately producing higher yields with more drought resistance. By providing our own breeding technology, Hopsteiner can offer products like Salvo, derived from CO2 hop extract and predominantly containing hop essential oils and beta acids, that can be used in hot applications without adding bitterness or causing beer loss. Its use has also reportedly extended the shelf-life for hoppy-style brews,” said Wilson.

  “We see a lot of the sameness in brewing. When I say sameness, I’m talking about a combination or mix of hops used to produce a particular flavor profile. But that sameness can also bring about a hesitation by consumers to try a new beer if they see a hop flavor profile with which they are already familiar. That type of consumer behavior directly opposes the inherent purpose of a great brewpub.

  The true craft brewer wants their consumers to want to try new flavor profiles, aromas and combinations. And one of the best things we, as hop growers, can tell a brewer is, with prices of most goods going up, the costs of hops aren’t that bad right now. On top of that, there are new varieties available to the craft brewer that will produce those new formulas and beers that can lure in, excite, and satisfy the craft beer consumer.”

  Hopsteiner offers the familiar products they’ve traditionally provided. They can drive additional efficiencies into those offerings using their in-house programs, allowing craft brewers to dare to be different. For example, Hopsteiner’s Tetra-S, derived from CO2 hop extract, provides an excellent flavor profile and offers foam-enhancing abilities for an increased visual appearance on beers that typically may not show or hold a head of foam.

  “Brewers have to get out of the rut that I feel craft brewing has been in for the last couple of years,” said Wilson. “We help them do that with our breeding program. We use worldwide hop hunters that allow us to offer new genetic materials to bring out new chemical compositions that allow craft brewers to use their creativity. Additionally, by brewing sustainable beers with new flavor profiles and aromas, craft brewers can gain the upper hand in gaining and keeping valuable shelf space that is already limited.”

  Wilson told Beverage Master Magazine that craft brewers must be their own advocates and do their research regarding sourcing hops. “Don’t just take one supplier’s word for it,” said Wilson. “Work on developing a good and comfortable rapport with all your suppliers, and then have open and honest conversations with them about supplies. The market is currently flush with hops. We’ve rebounded quite well from past climate issues in all varieties, with no slowdown in the foreseeable future. As a craft brewer, you have to talk with suppliers to determine where you need to contract supply and those places where you may not need to contract. In some current instances, it can be safer and more economical to play the spot market to fill your hops needs.”

Cryo Hops Offer Sustainability, Efficiency and Savings

  Yakima Chief’s Cryo Hops are processed using cryogenic technology, separating whole hop cones into the concentrated lupulin and the bract, or leaf component. The hops are processed and individually preserved using low temperatures in a nitrogen-rich, ISO-9001 certified production facility with limited opportunities for oxidation from initial separating through the final pelleting process.

  Cryo Hops pellets are the concentrated lupulin of whole leaf hops, housing the resins and aromatic oils that provide an even more intense hop flavor and aroma to your brew. Brewmasters can use these pellets anywhere traditional whole leaf or T-90 hop pellets are used but contain nearly twice the amount of flavor and aroma producing resin content. That extra resin content allows craft brewers to efficiently dose large quantities of alpha acids and oils without introducing astringent or polyphenol flavors or unwanted vegetative material. They also increase yield by reducing brewhouse and cellar trub and offering cost savings and net revenue increases with each batch.

  The pellets are specifically designed to offer efficiency and savings and provide greater sustainability in use, packaging, shipping and storage. The leafy material of the hop cone gets removed during the production process, reducing the overall amount of plant material brought into the brewing process. This reduction further eliminates trub loss and results in increased yields (3 to 5%) and improved quality. Yakima Chief reports that water, malt, utilities and labor are utilized more efficiently for every barrel of beer gained while only requiring half the storage and shipping requirements.

  Yakima Chief’s Cryo Hops perform similar to T-90 hop pellets with comparable density and dissolving characteristics and are appropriate as a full or partial replacement for whole leaf or T-90 pellets. However, they are only dosed at 40-50% of T-90 pellets by weight because of their concentrated qualities. Additionally, they do not pose a clogging risk to heat exchangers because of their fine particle size. They should be added to the kettle late in the process to prevent boiling out the intense flavor and aroma characteristics. Introducing the pellets in the whirlpool is preferred to increase aroma and reduce trub load from significant late additions. Using them in the fermenter is another excellent way to increase aroma and reduce trub loss. Cryo Hops will settle out during standard conditioning and can be fined, filtered or centrifuged.

Creative Hop Use Helps Fuel Growth of No and Low Alcohol Craft Beer

  Once considered a less-than-desirable alternative, low alcohol or no alcohol beer is now widespread and quickly trending upward, with breweries of all sizes taking note.

  In a video address, Richard Hodges, Regional Sales Manager of Yakima Chief Hops, said that the NA and LA beer markets provide an opportunity to shine for craft brewers, allowing them to display their creativity in brewing using a variety of quality, sustainably grown hops.

  “The low and no alcohol beer markets are without a doubt the fastest moving market,” said Hodges. “The last ten years have provided improved methods and innovation in flavor and aroma, thereby enhancing more widespread acceptance of new low alcohol or no alcohol brews. The main consumer base for these markets is the 25–45-year age range with an interest in a healthier beer alternative that fits into a moderation or abstinence lifestyle. In more direct cases, some regions have adopted stricter alcohol laws that have moved beer consumers to try low or no alcohol craft beverages.”

  “The biggest challenge we see in LA and NA beers is the lack of beer complexity and character loss involved due to the absence of alcohol,” said Hodges. “As a brewer, you have the option to either mask that lack of complexity or make up for it by using essential hops and malt profiles. But, of course, we believe it’s always better to make up for any lost taste profiles rather than simply trying to mask them. And because of the continuous growth of NA and LA beer, the improved and successful methods to make up for any lost character and complexity have become available to the smaller microbrewers, allowing them to appeal to and welcome a whole new demographic of potential patrons.”

  Hodges said that bittering hops like Yakima Chief’s Warrior, Columbus, and Chinook offer ways to add the traditional solid-yet-smooth bitterness needed to complement conventional hoppy and West Coast beer styles. Other options, including their Sabro and Talus, will add the fruit and cream, vanilla or coconut flavors to give LA or NA beverages a perceived body.

  Aromas in our favorite craft beers also add complexity but can get lost in the NA brewing process. To add those aromas that get lost in low ester production, Hodges recommends Simcoe, Idaho7 or Eknanot for a sweet tropical smell and an extra layer of complexity. Crystal, Columbus and Nugget varietals will give the familiar and expected woody, green and pungent hoppy flavors that craft beer drinkers expect.

Expect The Unexpected

  New flavor profiles and chemical compositions are quickly becoming available in conjunction with more sustainable sources of hops. As these hops make their way into the hands of creative brewmasters, there’s every reason to believe that craft brewpubs can creatively challenge the patrons’ tastebuds, causing them to raise a glass to an ever-evolving menu, including the exploding no and low alcohol market.