Category: Brewery

Bringing Brewing Full Circle From Craft to Culture

Cyndi

By: Quinton Jay

van in front of graffiti wall

In the heart of Fresno, California’s Central Valley, Arthur Moye enters the doors of Full Circle Brewing Co. (FCB), the region’s oldest-running brewery. Some days, he says, he still can’t believe it’s his.

  Prior to purchasing the brewery in 2016 and taking over as its CEO, Moye spent 15 years moonlighting his passion for craft beer as a homebrewer. During the day, he ran his own CPA practice as a successful career accountant, leaning on his academic studies at San Jose State University and prior experience working for two of the nation’s “Big Four” accounting firms to refine his strategic skills with numbers and business acumen.

  But, in true entrepreneurial fashion, Moye eventually wanted more, something that allowed him to blend his technical efficacy, his longstanding passion for craft brewing, and his deeply ingrained want to do more and give back to others within and around his native Bay Area community.

  “I definitely took a leap of faith when I sold my CPA practice to buy FCB,” says Moye, “but something in me knew that it was a chance I had to take. I needed to know if I could combine my experience as an accountant and strategist with my passion for craft beer, and if I could build a business model around the two.”

  Not only did Moye manage to successfully create a business model, but in the first four years after purchasing FCB, he was able to ramp the brewery’s production by some 3,000%. This explosion in production prompted Moye to expand the facility’s older 7.5BBL brewhouse, one that only produced draft beer locally to Fresno’s Central Valley, into a brewhouse with a 15-barrel capacity that was able to package and distribute its uniquely-flavored craft products all across the US.

“Beer” + “Entertainment” = “Beertainment”

  Moye will be the first to admit that he could not have acquired FCB, nor grow it into the Central Valley powerhouse it has since become, fully on his own. Like any tried and true entrepreneur, he knew he needed to rely on two vital components for its success: an empowering vision for what it could become, and the buy-in of the local community into that vision.

  “FCB was here long before I came along,” Moye says, “and so many members of this community wanted to see it revitalized just as I did, but I knew I needed to convince them. I started brainstorming ways we could turn FCB into the heartbeat of the Central Valley’s craft beer and entertainment scene, and the phrase ‘beertainment’ popped into my head.”

  As Moye explains, he not only wanted to create a successful brewery known for its winning craft flavors, but a gathering place where others could converge to disconnect, detach, and simply be mindful in the present moment. So, Moye and his team set out to establish FCB not just as a revitalized brewery, but one that doubled as an event and entertainment venue all under one roof. With his vision now clear, Moye set out marketing FCB’s rebirth to the community in Fresno’s Central Valley, and was fortunate enough to find funding from a group of local investors.

  “I’m not sure if I would call it ‘luck’,” Moye clarifies, “because that might imply that there wasn’t all this effort we put into refining the vision for FCB or acquiring funding to actualize it, but it just made sense that the investors who aligned with the vision were all locals to this area and its community. When you think about venture capital or investments in California, most people tend to think of Silicon Valley and companies like Apple or Tesla—not a craft brewery.”

  Moye’s adherence to his vision for what FCB could become, however, ultimately paid off. In 2016, he was able to acquire the brewery in full and immediately got to work. In 2017, he began reaching out to members of the entertainment industry, making introductions, fostering relationships, and creating partnerships to manifest his vision of “beertainment” for FCB. By the time the brewery had closed its crowd equity campaign and canned its first product of craft beer in 2018, FCB had already experienced triple-digit growth.

  With his vision and business model for FCB’s rebirth now in full swing, Moye started signing agreements with distributors throughout California to get his product in front of more customers in 2019. Less than a year later, FCB’s brand was being placed on shelves at major retail stores throughout the Golden State.

  But as Moye and his team at FCB would soon find out, not all that glitters is gold; even in California. Just months after FCB’s craft beer landed on shelves throughout his home state — each can sporting his coined phrase, “beertainment” — a new threat to business emerged in the form of the COVID-19 pandemic.

Pivoting to Find Value Amidst a Pandemic

  In mid-March of 2020, the world was wracked by the WHO’s declaration of the COVID-19 virus as an official global pandemic. All across the country, businesses that weren’t deemed to be “essential” were forced to close their doors virtually overnight, leaving Moye and his team at FCB scratching their heads as to how they could keep their business (and its vision) afloat. With the threat of a pandemic looming overhead, the “entertainment” aspect of FCB’s “beertainment” draw was shut down, so Moye had to once again get creative with his strategy in order to help his fledgling business survive.

  “During the pandemic, two of the most famous venues in town closed, one of which had been open for over 50 years,” says Moye. “FCB had taken over ownership of that venue, but we had to close it during the pandemic since it had no outdoor seating. My team and I put our heads together and collectively brainstormed ways we could pivot the business.”

  Ultimately, Moye and his team at FCB managed to keep their business alive by regularly hosting virtual shows with comedians, musicians, and other artists over Zoom. At the same time, they doubled down on FCB’s packaging and distribution, getting larger amounts of their craft beers into chain stores and craft liquor stores in California and 6 other states. They also picked up another brand, Sonoma Cider, and implemented their own iteration of a D2C sales model, deemed Full Circle 2 Go (FC2G), at a time when omnichannel retailing in the beer & wine industry was taking off in the US.

   “Running a brewery is one thing,” Moye adds, “but running a brewery that doubles as an entertainment venue also requires employees who can manage things like sound and security. When the pandemic forced us to shut down, suddenly these employees had no key role, so we asked them what their other skills are in order to keep them on board. Our security guards were repurposed as delivery drivers, and our venue’s promoter became the program director for FC2G.”

  As Moye explains, in a matter of mere months, the revenue from FC2G was able to match the revenue earned from their entertainment venue. Furthermore, by being able to pivot not only his brewery’s business model, but also the roles of his employees during the height of the pandemic, Moye was able to foster greater loyalty amongst his employees with FCB’s brand while simultaneously providing value to his brewery’s community. Now, nearly two years since the pandemic began, FCB still hosts comedy shows every Sunday night and has since been able to reopen its entertainment venue to more musical artists, albeit at lessened capacity.

Do What You Love, and You’ll Want to Work Every Day of Your Life

  Despite the onset and lingering effects of the pandemic, brewing craft beer has remained a thriving industry. With an economic impact of over $9 billion in California alone, Moye remains dedicated to his original vision for FCB as a communal hub where anyone and everyone can come together to unwind, destress, and share in their mutual love for uniquely-flavored craft beer and live entertainment.

   Additionally, as a black entrepreneur, craft brewer, and business owner, Moye is grateful that he is able to allow FCB to contribute towards the 1% of black majority-owned craft breweries in the US. Though black majority-owned craft breweries are still a distinct outlier in the industry, Moye hopes to see more post-pandemic events and gatherings like Barrel & Flow fest bringing black-owned-and-operated breweries together to celebrate Black arts, artists, and creators to help foster deeper DEI initiatives within the craft beer space.

  “It’s a little funny to me whenever I mention the ‘1%’ thing,” Moye adds, “because I still get responses from people like, ‘why does it have to be a black thing?’ But it’s not just about that—it’s a craft brew thing. It’s about finding a tribe of people who support you and your vision. It’s about finding other black-owned businesses breweries that support you because you all want to see more diversity, more inclusion, more representation, and more equity in the craft beer space. When you’re able to find those feelings in what you love to do, your work doesn’t feel like work.”

  It’s rare that we are able to find ourselves in a career that allows us to blend our technical acumen, interpersonal skills, and passions. Although, perhaps this is what makes the draw of craft brewing so attractive to so many. It grants those of us with a deeply-rooted love for craft beer to build a community around our ardor and share our enthusiasm with others, regardless of who or where they are.

Vegan-Friendly Beer

Cyndi

A Growing Trend To Watch This Year

By: Natasha Dhayagude, CEO, Chinova Bioworks

beer and pizza on the side

In an industry as competitive and ever-changing in terms of new products and trends, the ingredients for developing beer are constantly evolving. One trend to watch is the plant-based movement. Whether consumers are vegan or not, many consumers are paying more attention to what is on the ingredient label before they consume their favorite foods and beverages.

  Examine most beer labels carefully and currently, you will find that many beer brands are using animal-based compounds to process alcoholic beverages. Some animal-based compounds that are widely used throughout the production process of beer and alcoholic beverages are pepsin, a foaming agent obtained from stomach enzymes of pigs; chitin, derived from lobster and crab shells; and carmine, which is found in the crushed scales of cochineal insects. Another commonly used compound is isinglass, which is a kind of gelatin obtained from fish swim bladder. These compounds are often used in the alcohol production and filtering process to make drinks appear clearer and brighter. Clearing is an aesthetic concern and stability issue; it does not only look better, but it is more stable than cloudy beer.

But what if you Live a Vegan Lifestyle? Can You Still Enjoy beer?

  Because the vegan lifestyle is grounded in plant-based products, beer manufacturers must ensure the animal add-ons are completely taken off the list during alcohol production. With new technology, leading beer makers, including Budweiser, Coors, Corona and Heineken, have already begun shifting its processing to incorporate vegan-based ingredients instead of animal-derived ones.

  Vegan brewing is a growing trend, as more consumers are looking towards environmentally sustainable, plant-based options when purchasing food and beverages. While the market for vegan, gluten-free and low-calorie beers is still somewhat small, this industry is set to begin expanding as future generations become increasingly aware about the ingredients in their food and beverages. The growing trend of vegan brewing stems from millennials who are making more conscious decisions about what they consume, even when it comes to alcoholic beverages. Vegan beverages require a series of preparation and ingredients to meet the expectations of vegan consumers. Veganism has inspired the alcoholic beverage industry to incorporate plant-based and animal cruelty-free products. For many, being vegan has gone farther than just a trend; it is a lifestyle that many live by.

  Chinova Bioworks launched a major research initiative with College Communautaire du Nouveau Brunwick’s (CCNB) INNOV centre, supported by the New Brunswick Innovation Foundation’s Voucher Fund in 2021 to develop a new fining agent for vegan-friendly beer. Fining agents are used in breweries to clarify and brighten beer. The term “fining” is used to describe the forced clarification process. It increases the brightness of the finished beer by removing suspended yeast and haze-forming proteins and polyphenols. A beer with elevated levels of haze tends to deteriorate rapidly. This process also shortens aging times by removing the excess flavor-destabilizing components from the finished beer.

  For years, CCNB’s Grand Falls campus has developed technologies around brewing and distilling. Now, our company, Chinova Bioworks, has provided CCNB with a viable product and is putting its clean-label expertise to leverage the vast depth of brewing expertise at CCNB’s campus. Through this research, Chinova Bioworks will develop a new application for its proprietary white button mushroom fiber, Chiber, as a rapid fining agent for breweries. White button mushrooms contain many health benefits. Aside from the white button mushroom improving the quality of a product, it also has a notable amount of vitamin D minerals infused within the mushroom itself.

  Chinova’s mushroom extract is also a natural solution to reducing food waste and assisting in the production of vegan-friendly alcoholic beverages. Chiber is a cost effective, sustainable and vegan-friendly solution for the brewing industry. Before being used by breweries, Chiber has also been used for plant-based meat, dairy alternatives, sauces and condiments. It is a pure fiber extracted sourced from the stems of white button mushrooms that help improve quality, freshness and shelf-life and does not contain any allergenic materials from the mushroom, which results in increased consumer satisfaction and reduced food waste. Testing is also conducted to confirm the absence of regulated allergens. Chiber is odorless and tasteless; it does not alter the taste, color or consistency of beverages.

  Early results have shown that Chiber works eight times faster at settling yeast post-fermentation and can leave residual antimicrobial benefits to the beer, which makes it stay fresh longer. Chiber is a one-for-one replacement for artificial preservatives that provides the same protection from microbial spoilage, while being a natural and clean label ingredient. Chiber holds many certifications including: vegan, kosher, halal, organic compliant, non-GMO, declared allergen-free, paleo, keto-friendly, low FODMAP, gluten-free, Whole 30, and it has no sodium contribution.

  This research initiative comes at a time when many breweries are working to shift to vegan-friendly beverages to keep up with consumer demand for more sustainable products. Chinova Bioworks’ technology would provide brewers a vegan alternative to animal-based, isinglass fining agents and synthetic polyvinylpolypyrrolidone (PVPP) that has long been used in the beverage industry as a processing aid. Because many people are searching for vegan and plant-based options in every aspect of their lifestyle, Chinova Bioworks is committed to providing sustainable solutions through our white button mushroom fiber. Our goal is to help manufacturers produce clean-label ingredients and reduce food waste. Alcoholic beverages, beers in particular, are filled with animal-derived and synthetic ingredients, so we believe Chiber can make an impact for beer brands looking to expand their offerings to consumers. With this research, producers in the beverage industry will be able to consider the opportunity to incorporate vegan-friendly and sustainable products into their own beverages using clean ingredients. This research initiative will pave the way toward more vegan-friendly and sustainable beer and alcoholic beverages.

  In 2021, Chinova Bioworks worked on the research portion of the vegan beer initiative and with early adopters for market testing, while actively seeking innovative companies to take part in this initiative. Once this research initiative phase is completed, we expect that Chiber for alcoholic beverages will become available during the first half of 2022. The future for beverage companies is exciting and new technologies like Chiber may help many expand beverage offerings to a wider range of consumers looking for a good brew.

Natasha Dhayagude

  Natasha Dhayagude, CEO and co-founder of Chinova Bioworks, a food technology company founded in 2016 to develop natural, clean-label preservatives extracted from mushrooms for the food and beverage industry. Chinova is headquartered in New Brunswick, Canada, and 90% of her team is made up of women practicing in STEM fields. Dhayaguede was named Startup Canada’s Young Entrepreneur of the Year in 2017 and Startup Canada’s Woman Entrepreneur of the Year in 2019 for her role in co-founding Chinova. Since then, she has raised $4.5 million in capital investment from major food-technology venture capitalists and has formed strategic partnerships with major multinational producers in the food-technology industry. Dhayagude earned her Bachelor of Science degree in biochemistry from the University of New Brunswick.

 For more on Chinova Bioworks, visit https://www.chinovabioworks.com

The Right Equipment for Your Brewery Startup

Cyndi

By: Gerald Dlubala

cozy brewing facility

You’ve likely had a vision of the perfect brewing location in your mind for quite some time, and finally, you’ve found it. After all of the location hunting, permit wrangling and liquor license drama, it’s time to get the essential equipment installed and get to brewing. But how do you know what equipment is necessary? And how does that translate to your brewing goals?

  “Well, that depends,” says Chris Jennings, technical writer for Glacier Tanks LLC, a retailer of stainless-steel beer tanks, mash tuns, brew kettles, pumps and parts. Jennings is well-versed in the brewery startup process, having been part of multiple startups and currently opening his brewery.

  “You know, with a brewery, location is always going to be important,” said Jennings. “But as a potential owner, you need to take into account the inherent demands of your operation to understand your needs. For example, if you want a small little local brewpub, a smaller footprint to house smaller production equipment is fine. But, do you want to stay local? Are you looking to produce a regional brew? Do you see yourself as a regional production brewery? Are your goals to become nationally distributed? Your answers reveal your goals and ultimately factor into your basic equipment needs.

  “A common path for brewery startups is to fit the brewing operation into an established and secured location, especially with the popularity of historic buildings,” said Jennings. “It’s perfectly okay if you don’t have a location set, but if you do, then you already know the building’s options and available utility choices. You’re going to have to get permits for everything, especially in historic locations, which will make you fully aware of your on-site choices. Does your location have three-phase electric, 40-amp circuits, and 220-electric? What fuel source is available for the boilers? Are we looking at electric heating options, direct fire options (natural gas or propane), or steam, which, by the way, is the most efficient option and should always be the first choice if available? And please, always involve your preferred equipment supplier as early in the process as you can, even when considering specific buildings and locations if possible. We can help with building a potential brewery layout with AutoCAD software, and then custom fabricate an entire brewhouse based on the available footprint and specifications if needed.”

  Jennings told Beverage Master Magazine that the bottom line for brewery startups is to save time, money and heartache by getting equipment to make your daily work life more manageable. During the brewery startup process, it’s imperative to associate yourself with informed people who can offer guidance and experienced purchasing information. The essential equipment to consider for brewery startups include the mash tun, a hot water source or hot liquor tank, depending on the production size, a boil kettle, heat exchanger and fermenter. Matching these essential items to your brewery’s goal-driven production needs within the allotted space goes a long way in ensuring a quality startup.

  “Other things can technically wait,” said Jennings. “But when considering equipment, I always suggest that anything else you can add to the actual production process immediately makes your brewing life more manageable. Any production process needs equipment. It’s just the way it is, so the more equipment you can have available upfront, the easier and more manageable your daily brewing life will be. Of course, I’m talking about anything and everything else, including a brite tank, filter, glycol system, applicable pumps, valves or other minor equipment. As a brewmaster, you want to focus on brewing your beer rather than losing quality time to menial or time-consuming tasks that the proper equipment or tooling can handle.

Size, space, and the Limits of Customization

  “Custom tanks like those we offer at Glacier Tanks are awesome,” said Jennings. “But even though our tanks and brewing equipment can be customized, there are not infinite options. Brewing is a science, and science determines the effectiveness, performance and size of the brewing equipment needed, including tanks.”

  But Jennings said there’s more to consider when matching projected production numbers to equipment. For example, adding additional fermenters doesn’t necessarily increase your production capability. If your boil kettle is a five-barrel capacity and you add a 20 barrel fermenter, you’ll need four brew sessions to fill it. So yes, you’ll have more beer, but you have to account for the extra time spent brewing. Adding two 10 barrel fermenters or four five-barrel fermenters may be more economical and efficient. Rather than looking at an 18- to 20-hour brew day to use a single 20 barrel fermenter efficiently, smaller capacity options allow more time between brew sessions while providing greater batch control and increased possibilities for brewing variety.

  Glacier Tanks offer stainless steel certified tanks that can adapt to any extraction process a brewer considers, including kombucha, soda, non-alcoholic products and even winemaking. The company keeps experienced brewers on staff to ensure that their systems remain industry-specific, including their turnkey brew systems that can be a two or three-vessel system, ranging from three barrels to 15 barrels requiring a 14’ x 16’ space.

  “Space is always at a premium for brewing operations, so when projecting a layout, it’s important to take every square foot into account,” said Jennings. “As for equipment, science says that the larger everything is, the larger everything needs to be. If you’re considering a three-barrel boil kettle, you’re looking at a piece of equipment just over seven feet tall and about three and a half feet wide. A three-barrel fermenter is 6’4” and three feet wide. A 10 barrel kettle will be 8’ 6” tall and 4’ 9” wide. A 10 barrel fermenter will take up 8’ 5” by 4’ 2”. A 20 barrel kettle requires a 15’ x 15’ space. Fermenters can range up to a 20’ x 8’ area required for a 100 barrel option.

  “What a brewer needs for a startup depends on the production goals. If your production is greater than five barrels, you should have an HLT just from a water conservation standpoint. To calculate the production capacity of any system, multiply the size of the system in barrels by how often a week you want to brew. Take that weekly amount and multiply by the number of weeks a year (50 is standard) you intend to brew to get your annual production number. You can also work backward to set your brewery production goals and scale the equipment and system to the necessary workload. Divide your annual production goals by the weeks you will brew to arrive at a weekly production number. The number of brew cycles needed per week then depends on the capacity of the system you install.”

The Never-ending Evolution of Brewing Technology

  While it’s true that brewing technology is constantly evolving based on needs, Jennings said that technology generally changes because of the potential of greater efficiency or measurable cost savings. One example is in the area of water conservation. “The brewing process wastes a lot of water, so there is always interest in any new technology that decreases, limits or stops wastewater and saves money. Glacier Tanks has incorporated a spud valve based on old German technology that allows a brewer to off-gas produced CO2 at a predetermined PSI setting during the fermentation process. As fermentation ramps down, the amount of CO2 released naturally lessens, allowing the brewer to capture more of their own produced CO2 to keep in the solution. It’s more efficient and can reduce the cost of purchasing CO2 after releasing all of your own. Higher efficiency plus cost savings drives successful changes.”

  “Sizing your system is the important first step in starting your brewery,” said Jennings. “Brewery equipment is scalable and should be scaled to your brewhouse so you won’t have to upgrade too rapidly. Even though saving money is important for a new brewer, penny-pinching or skimping on initial equipment purchases upfront can lead to supply and demand issues, income and product loss, and increased waste. Rather than wasting money on things you might need, spend the money on quality equipment you need. Also, don’t consider expansion only for the sake of growth. Fixing a problem due to bad planning is very expensive. Instead, make sure that the market is there and you’re prepared to expand your workday.”

When Even the Basics are too Much: Small Batch Equipment for Limited Spaces

  Quality equipment is essential, especially if you’re a small batch brewer with limited space. No one knows this better than Adam Sommer, Head Brewer and owner of Evergreen Farm Brewing in Metamora, Illinois.

  Sommer used his detail-oriented background as an electrician and mathematics enthusiast to start a small-batch, ground-to-growler brewery on a farm that’s been in his family since at least the mid-1800s. However, by choosing the old farm as his brewery location, his available brewing space was limited by the dimensions of the original farm buildings. That meant fitting a complete brewing system into a 15’ x 15’ space, and after researching his options, he found an all-in-one brewing system option from BREWHA Equipment Company. Their turnkey system allows the entire process of mashing, boiling and fermenting to occur in the same portable, conical fermenter, saving both space and time for a small-scale brewer.

  “Space was definitely an issue, but being out here in the country, we operate out of an existing well, so wastewater is an important issue as well,” said Sommer. “With the BREWHA unit, we only use two gallons of water per gallon of beer compared to four gallons that are normally needed.”

  Sommer told Beverage Master Magazine that he has been brewing beer for less than a year but estimates his production to be about 50 barrels for his first year. He plans to expand by renovating more original buildings and combining those with new structures that will feature the same aesthetics and appeal as the original structures. Sommer also has a couple of one-barrel fermenters for experimental brews and for producing different beer styles. Additionally, he uses two jacketed water chillers with a third in the works that provide a steady range of temperatures throughout the fermentation process.

  “And it’s easy to overlook at first, but you can’t forget about the small but equally important equipment and supplies that you need to serve your customers properly,” said Sommer. “We keep a supply of growlers and howlers so our patrons can take and enjoy our products at home or share with others. The amount that you’re going to need is just kind of guesswork at first, but the important thing is to have a relationship with a supplier to get your orders delivered when you need them.”

  When asked about advice for startup craft brewers, Sommer echoes the thoughts of Jennings. “Don’t skimp upfront. Instead, buy the best option to handle the capacity you need. That will allow you to make a quality product at a good price point for all involved. At the onset, the BREWHA brewing system was what I needed to get started. The price was right, and the system met my goals, needs and specifications.”

  Sommer’s ultimate goals for Evergreen Farm Brewing include becoming a destination brewery featuring event spaces with Airbnb rental options.

For more information, go to www.evergreenfarmbrewing.com

Packaging With a Purpose

Cyndi

How the Right Packaging Can Protect, Promote & Preserve Your Craft Beer

By: Cheryl Gray

beer manufacturing facility

Putting a distinctive face on a craft beer product means giving it a good chance to shine in the marketplace spotlight. However, that’s only part of the role of packaging. It should also protect craft beer from outside contamination while preserving its flavor integrity.

Equipment

  Enter the expertise of companies that shape the multiple roles of packaging for breweries. Among them is SKA Fabricating of Durango, Colorado. Founded in 2012, SKA Fabricating is the result of a demand for a can depalletizer designed by Matt Vincent, one of three partners in Durango’s award-winning SKA Brewery. SKA Fabricating now employs more than 70 people and manufactures and sells depalletizers, conveyors and packaging line equipment to businesses worldwide.

  Ska Fabricating has more than 1,000 clients in 23 countries, providing them with depalletizers and other custom packaging line equipment. Beyond the craft beer industry, the company also provides packaging line equipment to producers of food and beverages such as coffee, tea, water, kombucha, soda and orange juice. Non-beverage industries include aerosol, paint cans and spice jars.

  The size and capacity of systems built by SKA Fabricating fit virtually any brewery packaging line need. They range from a 20’ x 20’ square at 20 containers a minute to a 60’ x 60’ square running 250 CPM and above. The company is big on automated packaging line systems, touting them as more economical since automation requires less manpower. However, SKA Fabricating provides manual systems for clients who prefer them, such as start-up breweries on a tight budget. Those manual systems are available for half-height use and do require more personnel. As breweries grow and want to advance to automatic packaging systems, SKA Fabricating can help with the transition. 

Filling

  Another part of packaging is filling the cans and bottles that craft brewers use as containers for their products. XpressFill offers multiple fillers for the craft brewing industries. Rod Silver spearheads marketing and sales for the company.

  “XpressFill’s filling equipment is suitable for breweries that are not ready to invest in a full-blown production line. Our artisan brewers can realize significant savings in their efforts to grow their markets before making such a significant investment.”

  Since XpressFill offers fillers specifically with start-ups and smaller craft brewers in mind, the company promotes its products as the gateway to an opportunity for artisan brewers to run efficient, cost-saving packaging production lines. The company cites its products as top industry choices when it comes to being affordable, compact, user friendly and easy to maintain.

  Silver added that customer support is an important key to client satisfaction and that XpressFill has products for production brewing lines, large and small. He described how brewery clients are already benefitting from the range of products that his company has on the market, all designed to optimize productivity.

  “We offer counter-pressure fillers for both bottles and cans. We also offer an open filler that will fill both bottles and cans,” Silver said. “The XF4500C is a counter pressure system for cans capable of filling 200 12 ounce cans per hour. The XF2200 (two-spout) and XF4400 (four-spout) are open fill systems for cans capable of filling 300 to 600 cans per hour. The XF2200 and XF4400 can also be adapted to open fill bottles. The XF2500 (two-spout) and XF4500 (four-spout) are counter pressure systems for bottles capable of filling 200 to 400 12 ounce bottles per hour.”

  Silver laid out the pros and cons of manual versus automated production lines. “The most obvious distinction is production capacity and cost. The XpressFill systems are affordable for start-up breweries, ranging from $2,500 to $6,500. Automated systems are, at a minimum order of magnitudes, more expensive. Often, brewpubs will provide cans or bottles to be sold at the pub in limited quantities. Brewers getting started in retailing their brews will want to start in a deliberate manner to test the market. Larger breweries will also use our fillers for small batch or specialized runs that do not require start-up of larger production facilities or mobile operators.”

  Silver described how XpressFill works to protect the integrity of the beer inside any container. “All of our fillers have a pre-fill CO2 purge cycle to minimize the oxygen in the container prior to the fill cycle. Our can-fillers also have a post-fill top-off function to ensure an adequate layer of foam on which to place the lid. The counter pressure systems require a minimal air compressor to operate the pneumatic actuators. Our fillers operate at 110 volts, although they can be provided at 220 volts for our international customers.”

  Ease of use is also important. Silver said that his company prides itself on the simple operation of its products.“XpressFill can-fillers can easily be operated by a single user. Weighing under 40 pounds, they are intended to be used on a tabletop for portability. A few test runs are required to dial in the settings and bring the equipment to temperature for best results. Our fillers will purge and fill the cans, and a separate seamer is required. To maximize the production and efficiency, many of our customers use a second operator for the seaming function.”

  Silver said that XpressFill products have state-of-the-art safety features, compliant with industry-standard safety measures, including all applicable electrical and mechanical requirements. All materials in the flow path are food grade and meet the standards set by the National Sanitation Foundation.

  Fillmore Packaging Solutions is another company focused on small craft brewers. Its history highlights how owner Tony Saballa, a craft brewer in his own right, founded the company because he couldn’t find products on the market catering to the needs of small breweries like his.

  Based in St. Louis, Missouri, Fillmore Packaging Solutions provides its clients with options for automated can filling machines that utilize an automatic shutoff feature. This prevents cans from overfilling, a costly and time-consuming production line mishap. The product’s four-head can-filler is designed to fit into small spaces and accommodate small budgets. The product features double pre-evacuation counter-pressure filling, designed as an effective method of reducing dissolved oxygen during beer packaging. It can fill 12 to 16 cans per minute. Standard features on the product include under lid gassing, automatic lid placement and seaming. Additional features such as tank and CO2  pressure sensing and temperature monitoring with onscreen readout help to enhance the product’s ease of use. 

  The firm has also created two- and four-head filler machines for bottles. The machines operate on 110v/220v and compressed air. Fill rates for the two-head machine range from six to eight bottles per minute. The four-head machine fills at a rate of 12 to 16 bottles per minute. Features for both include automatic filling and self-leveling to correct fill height. The four-head model has a feature that pushes bottles onto the production line’s packing table. The models are operator-controlled from start to stop, loading and unloading bottles and loading crowns onto crown heads for capping. Fillmore also created a keg washing machine featuring a 25-gallon detergent reservoir with heater and a 25-gallon sanitizer reservoir.

Labeling

  When it comes to the aesthetics of packaging craft beer, labeling is the star. Colorado-based Lightning Labels has provided clients with custom-designed labeling for nearly twenty years. The company uses HP Indigo digital printing technology, which combines the best features of traditional offset printing with digital techniques. This hybrid delivers top-notch quality whether the client’s order is large or small. 

  Lightning Labels prides itself on the vibrancy of its color palettes, produced in high-resolution and designed to be water-resistant. Labels can be affixed to bottles, cans, growlers and kegs in a wide range of finishes, using high gloss, matte or textured paper. There are separate front and back label options, or clients may opt for one large wrap-around. Lightning Labels touts that its print quality allows listing custom beer ingredients in a crisp, readable font. Bottle labels are available in paper,  vinyl and eco-friendly options as well as more durable alternatives. As the name implies, Lightning Labels touts a quick turnaround on product orders.

  Blue Label Packaging Company specializes in labels for beer cans. Headquartered in Lancaster, Ohio, the company also uses HP Indigo printing, offering its customers an array of materials and substrates, such as foil, film and paper cut and stack labels. Product finishes and decorative techniques aimed at creating high impact include hot foil stamping, die-cutting and embossing. 

  Cost, creativity, and careful planning matter when it comes to packaging for craft breweries. The combination results in products that distinguish themselves on store shelves and meet the benchmarks of industry standards and food safety requirements.

If It’s Premium & Luxury, We’re Drinking It

Cyndi

By: Hanifa Sekandi

bartender mixing alcohol

Maybe we have been home too long? Could it be sheer curiosity leading us to develop a sophisticated spirits palate? It is true that when your life is busy, you tend to give very little thought to what goes into the cocktail you are drinking. You may know you like gin, bourbon, whiskey or tequila but, unless you are a spirits connoisseur, the quality of liquor you drink may evade you. Now that you have graduated from junior bartender to an award-winning at-home mixologist, drinking just anything does not cut it. You want premium and luxury spirits that are high quality and arouse the palate. You desire a tequila on the rocks that is as smooth to sip as it is when poured for a single shot. Your bar cart is the a la carte experience that your neighbors dream of; they sure do envy it in the community group chat. It is time to expand your horizons to premium and luxury spirits from around the world.

  You may not be able to travel to a far-off land, but you can feel its energy, the ingredients, the rich soils, and the minerals that make up the alcohol in each bottle. Alas, you can feel the African rhythm, the tranquility of India, the heat of Mexico when you savor one of their premium spirits. It is the road less traveled that leads one to incredible experiences. During this time, our hearts and minds come alive and begin to dream again. Until then, the road will be through the liquid poured and made with pure heart by people who want you to discover their lands and what makes them unique.

The Heat of Mexico: Tequila

  It is not that people were not drinking tequila in years past; they certainly were. As with all things great, it takes time for people to appreciate what has always been good. Tequila traces its beginning to Jalisco, Mexico. Travelers to this sunny destination learn very quickly that tequila is one of the essential elements of experiencing Mexican culture. Yes, there is more to Mexican culture than this ancient craft spirit, but there is no denying its pulsating effects. There is the ad-age that you may have heard, “tequila makes babies,” meaning that it goes down so smooth and keeps the party going, you most likely will not remember what happened the night before. With each sip, the heat rises, the party becomes passionate and livelier. What has changed? Why has tequila gained popularity in recent years? What seems like a newfound love for tequila is due to education. Premium tequila brands are going a step further by partnering with brand ambassa-dors, bartenders with in-depth knowledge about tequila and a deep understanding of how tequila is made and what makes a brand luxury.

  For some, tequila is a waist-friendly, craft-spirit-alternative that sips well. It is the alcohol of choice when mixed with low-caloric pre-made drinks. This trend might have been ushered in with popular diet-savvy cocktails, like the skinny margarita, since pared-down emphasizes the quality of tequila used.

  Premium tequila contains 100% de agave. Lower-quality tequila, called mixto, consists of other alcohols and less than 51% agave-derived alcohol. It is most likely what you tried years ago at your local bar before they upped their alcohol repertoire due to the patron’s elevation of tastes.

  If tequila is the main event for burgeoning spirit enthusiasts delving into premium alcohol, skip-ping the frills and enjoying it “just as” seems appropriate. A familiar mid-level premium brand is Clase Azul Reposado. Due to the white ceramic bottle with beautiful blue hand-painted details, it is a recognizable brand. Although this mid-range tequila only ages for 8-months in American oak barrels, it boasts a rich flavor profile. It is not unusual to find this bottle perched on the shelves of travelers who have visited Mexico and needed to take a piece of tequila splendor home with them. Another noteworthy premium tequila made with agave from the highlands of Jalisco and aged for five years is Tears of Llorona Extra Añejo Tequila.

  Word travels fast with the premium brands recognizing that tequila education increases aware-ness and demand. Hence the prevalence of tequila tastings has become a common occurrence not just in Mexico but in bars across the globe that showcase premium tequila as the main event.

Feel the African Spirit: Brandy

  South Africa is known for its Winelands but, for those who know, there is something rhythmical-ly beautiful about African-crafted spirits. Each country on this rich continent has homegrown spirits that keep the symphony of well-made liquor loud enough to entice explorers far and wide. It is not surprising that as the premiumization of this sector flourishes, South African spirits are found on the top shelf right next to the best American-made bourbon in town. Although South Africa is known for its brandy, there is a diverse array of spirits that never fail to impress. A standout spirit is a blue-hued botanical gin by Six Dogs that gets its color from a blue pea flower. The magic of this gin is apparent as it changes to a lovely pink when mixed with tonic.

  On the world stage, South African brandy has received prestigious accolades. KWV Centenary Limited Edition Brandy, made in the Paarl region of South Africa, has a premium price tag that will send chills down your spine. Its namesake and distiller is Ko-operatieve Wijnbouwers Vereniging van Zuid Afrika, a distillery that has been making brandy for over 100 years.

  The word brandy derives from the Dutch word ‘brandewijn,’ meaning burnt wine. Brandy’s long legacy dates back to the 17th century with Dutch settlers. This is apparent with the breathtaking gardens and Dutch farmhouses where spirits are still made. South African brandy is described as having a velvety texture with robust citrus and floral notes along with an enchanting aroma. A standout attribute is that distillers maintain traditional brandy-making practices. Although they have pivoted with the times, honoring the tested and true techniques produces a premium amber spirit.

  What brandy distilleries in this country have maintained is crafting beautifully aged batches with copper pot stills as the first stage. They follow this by further aging it in oak barrels. Batches un-dergo this process for at least three years before a brandy with an alcohol content of 38-43% is ready to be bottled.

  South African brandy is composed of Colombar and Chenin blanc grape varietals, fermented to make this chest-warming spirit. For those who love wine but turn their nose up at this deep-colored, rich, alcoholic beverage, the two are close relatives that share the same roots, often liter-ally.

  When sourcing authentic South African premium brandy, keep in mind that the rules are strict for brandy distillers. Therefore the real deal is only made from grapes endemic to the South Afri-can Winelands and distilled, aged, and bottled there.

The Tranquility of Spirits in India: Whiskey

  When most people think of India, they imagine themselves in an ashram meditating and doing yoga. India is a country where people travel to find what is missing within and, for some, to simply find what is yet to be seen. It is a land that is full of beauty and undiscovered treasures. It is not surprising that premium spirits are made in a country rich and diverse with indigenous plants. The climate is ideal for growing and harvesting; therefore, making unique premium whis-key was inevitable. 

  For Hermes Distillery, a premium spirit distillery founded in 2018, producing homegrown pre-mium whiskey was a necessary endeavor. Founder Amit Kore recognized that India could pro-duce top-shelf liquor just like America and Europe. The Rockdove premium label whiskey made by this nouveau distillery bouts all the luxuries that an avid whiskey drinker desires: A rich and deep-colored whiskey, light-bodied and smooth like scotch.

  The 100-year old technique used by Hermes Distillery at their Tomsa plant, the first in India, is from Spain, and it is the same technology used by familiar brands Crown Royal and Johnnie Walker. Moving at a pace that would take most distilleries decades, Hermes is opening the door for Indian-made premium liquor to join prestigious distilleries as a top-shelf selection.

  Drinking premium or luxury is not about social class. It is about quality. A survey conducted by Bacardi found that 75% of the people value cocktails made with high-quality spirits. For those looking to experience more than a night out with any old cocktail, premium spirits allow them to enjoy the moment with ease and appreciation. It is better to stretch your wallet just a little bit to drink the real deal. In the case of tequila, 100% de agave is a must! And wouldn’t you like your botanical gin to contain ingredients sourced from the lush gardens of South Africa? Seeing the meticulous effort that goes into an Indian-made whiskey, you must recognize that there are no shortcuts for luxury. So, as we usher in a new year, let’s take the long road down luxury lane, slowly sipping one premium spirit at a time.

“SHOW ME THE MONEY”

Cyndi

After Friends and Family, Where Do I Get Growth Capital?

By: Quinton Jay

dollar bills flying

Like most entrepreneurs, founders and owners of smaller craft breweries and distilleries often find themselves having to wear many hats. You need to be aware of your internal operations and external logistical factors in your business’s supply chain, as well as understand how to best market and sell your brand’s products.

  Arguably one of the most important hats you will have to wear that is not obvious is the one that reads “finance.” Without having a finger on the pulse of your business’s finances, you’re setting yourself up for inevitable failure. Running out of cash is the number 1 killer of businesses within the first two years.

  When your finances start leaning towards the red, or you know your business requires an additional injection of capital to grow successfully, it can be easy to feel frustrated and discouraged. But this is simply another part of business; you can’t expect to reap the benefits without having to face and overcome the hurdles and challenges you’re bound to encounter.

  If you — like many other small business owners — were able to obtain at least a portion of your original capital through friends, family, or other investors, this may not be a possibility further down the road. This is where that “finance” hat comes into play once more. In order to emerge from uncertainty with a brewery or distillery that is ready to continue growing, you as a founder or owner are required to find alternative means of raising funds, especially if your overarching aim or goal is to land an eventual, profitable exit. But where do you start?

  Here are some ways that you can use as means of obtaining additional growth capital for your small brewery or distillery business when reaching back out to friends and family is no longer an option.

Understand the Realm of Private Equity Investments

  As the Managing Director of Bacchus Consulting Group and its capital management fund, I have more than twenty years of experience managing, consulting for, and investing in more than a handful of small, independently-owned brewery and distillery businesses. I have helped dozens of businesses in the industry understand their options when it comes to raising growth capital through VC investments, the separate stages of fundraising, and the impact that each fundraising option has on those businesses.

Private Equity Funding

  When the time comes to look into raising growth capital for your small brewery or distillery business, the most prominent option you will run into is private equity (PE). To put it simply, PE involves investing in companies using capital that has been sourced from individual or institutional investors, as opposed to investing in companies using capital sourced from public equity markets like the NASDAQ or New York Stock Exchange.

  For the sake of insight, the general thesis of any PE investment is three-fold. A PE investment is made to: firstly, purchase a company (or portion of a company) using significant leverage and a minimal amount of equity; secondly, utilize the industry expertise and synergies of the PE investor(s) in order to maximize the growth and efficiency of the acquisition or investment made, and; thirdly, to sell that acquisition in an approximate period of 3-7 years based on the company’s improved metrics and lowered levels of debt.

  A common misconception with PE funding is that giving away equity in return for capital is “free,” but this could not be further from the truth. Selling equity for capital is simply a means of delaying payment. With PE funding, there’s no true cap on what you can give away in return for the growth capital you want or need. If you believe in your business, you’re better off acquiring debt rather than selling a portion of your equity. When you give away equity, you’re giving away infinite returns in perpetuity.

Alternative Lenders (Non-Bank Financing)

  Some sources of alternative financing include:

●    Merchant Cash Advances (e.g., Quickbooks capital, Shopify capital, AMEX Merchant Finance, etc.);

●    2nd Lien Lenders (similar to a 2nd lien on a home mortgage)  and;

●    Unitraunche Lenders: a hybrid lending model that combines multiple different loans — sometimes from multiple lending parties — into one, with a blended interest rate that tends to average those of the lowest and highest rates of the individual loans lent.

  As their name states, these are each an alternative form of financing available for businesses looking for access to growth capital. However, these forms of financing for businesses tend to be riskier on the part of the lender, hence why they charge more for these sources of growth capital.

Traditional Lenders (Bank Financing)

  Financing for growth capital through bank loans is another available option for small businesses. This avenue tends to come with lower interest rates than most sources of alternative financing but is usually much more difficult to acquire.

  Financing can also be done through debt, rather than its equity, but again: if your small brewery or distillery business is already deep in debt, it may not be the most beneficial option available to you. Although, when acquiring bank debt, or any debt instrument (as opposed to equity via PE financing), there’s always a cap on how much you can pay for the use of those funds received.

Finding the Right Investor for Your Brewery or Distillery Business

  Regardless of which financing option you choose to go with when searching for additional growth capital, the most important factor to keep in mind is to find the specific investor, fund, or lending institution that compliments your business and its goals. If your aim is to grow your brewery or distillery into a business that can be acquired by a larger parent company in a multi-million dollar deal, then PE financing is likely your best option. Similarly, if your business has a higher amount of debt, finding an investor that can provide you with acceptable terms for a second lien may be the avenue you wish to pursue.

  Whatever type of growth capital investment you wish to see for your business, be sure to ask yourself questions regarding the synergies your investor has with your business. Some examples of these might include:

●   Does this investor have good chemistry with me and my core leadership team?

●   Does the investor have a willingness to help and mentor me and my team on how to best successfully grow our business in line with our goals?

●   Does this investor believe in me, my team, and our ideas for our business?

●   Do they have relevant experience and connections we can utilize for additional investment opportunities now and/or in the future?

●   Does this investor have the domain and expertise — along with the capital — necessary to help carry our business forward through periods of growth we want to achieve?

  If your answer to any one of these questions falls into the realm of anything other than “yes,” then chances are high that they are not the right investor to bestow you and your business with growth capital. Additionally, if you or your core team are not ready or willing to accept mentorship from an investor, then don’t waste their time (or yours) trying to receive an injection of capital for growth solely for the sake of having more cash to fuel your business’s runway. Too many businesses — even smaller breweries and distilleries — land themselves in hot water this way. Don’t become one of them.

Showing What Investors Want to See in Your Business

  Before any investor, fund, or firm will agree to make an investment of growth capital in your business, they are going to scrutinize your business from every perceivable angle. Throughout their vetting process, you can (and should) expect any potential investor to analyze no less than the following aspects of your company:

●   Business Model: How does your brewery or distillery make money? What are your key business metrics such as revenue and gross margin, operating profit, and EBITDA? Is your current model scalable or does it need to be reworked if your business wishes to continue growing?

●   The Team: Does your business’s core team (including you) possess the knowledge, skills, and ability to carry the company through periods of growth? If not, which employee(s) need to be let go and replaced? Is the team able to collectively address and resolve issues?

●   Structure and Governance: How is your company structured and led? Is there transparency and accountability across its departments? Does your business have a succession and/or key man insurance plan in place? If so, what does it look like?

●   Exit Plan: Does your company have an exit strategy in place? If not, then why not? If so, what does this plan look like, and is it reasonably sound?

  All of these factors will play a vital role in your business’s ability to land growth capital. From my own experience as an investor/financier, I am looking for specific reasons not to invest in or finance a company; anyone can fall in love with thier own deals and each deal must stand on its own merits. This means that you, as the founder or owner of your business, will need to know both your company and its market viability inside and out if you wish to gain an investment of capital necessary to grow it in a way that meets your goals.

  If you are able to show investors and financiers that you are credible and trustworthy, that your business has shown the capacity to make sales of quality products and grow from its revenue and profits to date, and that it has the potential to continue growing in its existing market or into new markets, then your chances of landing an investment of capital required for growth are much higher.

GETTING CRAFTY: How the Beverage Industry Can Secure Business Funding

Cyndi

By: Raj Tulshan, Founder of Loan Mantra

hand holding dollar sign

According to the Independent Craft Brewers Association, the Craft Brewing Industry was responsible for over 400,000 jobs and contributed $62.1 billion to the U.S. economy last year.  As with other industry segments like restaurants and retail, COVID-19 had a devastating impact on sales.  Craft beer retail sales decreased 22%, to $22.2 billion, and now accounts for just under 24% of the $94 billion U.S. beer market (previously $116 billion)*.

  At the same time, craft brewers and brewpubs may have found themselves left out of the American Rescue Plan, which offered $100 million in grants for eligible organizations during the COVID–19 pandemic. And for those companies that could take advantage of government programs like the  PPP (Paycheck Protection Program), records indicate that more than half of the funding proposed to help smaller shops and owners, actually went to larger corporations.

  When it comes to funding your business, you have many financing options. If you’ve decided that borrowing money from a lender needs to be a part of your funding plan, there are many things you can do to increase your chances of getting the best possible loan, including different kinds of research, some careful planning, or actions you can take. 43% of small businesses applied for a loan last year, and only 48% of those small businesses get their financing needs met.

  Banks lent over $644 billion to small businesses in 2019, but lending slowed in the wake of the pandemic in 2020. With lenders feeling more optimistic in 2021, there will be more options for small businesses looking to rebound. For businesses still struggling after more than a year of unprecedented disruption due to the COVID-19 pandemic and working tirelessly to recover, not all hope is lost. Consider the case of  Trubble Brewing Company.  Trubble Brewing received loans to expand from one location to three in the Ft. Wayne, Indiana area just before the pandemic began in 2019.  From 2019 through today, the company enjoys huge success.  

  To best position you to apply for a loan, there are some steps you can take, from figuring out if you can qualify to prepping all the documents you’ll need. Here are some tips to think about when financing:

  Research loan products: Understanding the type of loan that are available is critical. Applying for a loan, when what is actually needed is a line of credit, will slow down the process and possibly end in a loan denial. Experts from Loan Mantra can help you pinpoint exactly what type of funding is needed and help guide businesses through the application process step-by-step.

  Structure the deal:  Working with an expert can help you structure the loan so that your approval is fast and successful.  For instance, know what specific things associated with the business that a lender will grant you funding for and structure the loan accordingly.  For instance, borrowing money for expansion, real estate, machinery and buildings may be very amenable for a lender.

  Make a name:  Now is not the time to scale back marketing efforts or forget to update the website.  Market your craft brew, register a website domain address and update your online profiles. Get a professional logo.  Be active on social media and online.  Stake your claim in the industry and make the craft beer name stand out.  Register with search engines and on multiple platforms so that banks and other lending institutions can find and get a feel for the company.

  Realize it takes time:  One of the biggest factors in determining whether a loan is approved or not is the length of time a brewery has been in business.  Lenders want to know if a business has stability and the longevity to keep up with the business in the near and long term so that their funds will be re-paid.  In addition, the ability to provide receipts and prove profitability are very important even if a business is fairly new.  The lender is determining if a company has credibility – does a business invoice and collect payments on time, maintain records and conduct its processes in a professional manner.   

  Organize and compile your documents:  Applying for a loan requires financial transparency, so make sure your financial, accounting and tax records are accurate, organized, and updated. You’ll likely be required to submit numerous documents, including three years of business and personal tax returns, a loan application that permits a personal credit report for all owners, business debt schedule (BDS), personal financial statement (PFS), interim financials, AR and AP aging reports, entity documents, and purchase agreements. Organizing and compiling these items ahead of time makes the process much easier and less stressful. The Loan Mantra portal allows you to upload and securely store your financial documents so you’re prepared to apply for funding as you prefer.

  Maintain credit worthiness: Pay your bills on time, have the best credit possible, and know your credit score. Avoid foreclosures, bankruptcies, and late payments. While different lenders have different credit requirements, good credit is important regardless of the loan you’re pursuing. Lenders often require a credit report that can mildly impact your credit, knocking a few points off your credit score each time you pull the information.  Therefore, applying for too many loans simultaneously may undermine your credit score, so start by applying for a loan that you have the best chance for securing. Loan Mantra’s financial technology, BLUE (borrower lender underwriting environment), uses decision-tree logic, meaning it can help you determine the best loan product for your needs. Also, Loan Mantra experts can help you determine the most prudent options for financing–from a conventional loan to MCA–based on your borrowing needs.

  Be prepared:  Now is not the time to scale back marketing efforts or forget to update the website.  Market your craft brew, register a website domain address and update your online profiles. Get a professional logo.  Be active on social media and online.  Stake your claim in the industry and make the craft beer name stand out.  Register with search engines and on multiple platforms so that banks and other lending institutions can find and get a feel for the company.

  Sustain and remain:  What part of the brewery: growing, product, mechanism, process, water usage, energy consumption, etc. is sustainable?  Does the brand resonate with the community and do you know the future goals for sustainability in the areas where the business is located?  This can make a direct impact both now and in the future.

  Keep records safe:  Providing and producing documents for the loan process can be time consuming and frustrating for both borrower and lender alike.  Working with companies that have an online portal to streamline this process to keep this information safe and secure for use anytime can save time, headaches and money.  Fortunately, Loan Mantra offers this service that is free to all business owners.  Simply upload your documents to a secure portal at loanmantra.com.  You don’t even have to be a client or customer to use the service.  

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About the Author

  Neeraj (Raj) Tulshan is the Founder and Managing Member of Loan Mantra, a financial advisory firm with best-in-class and proprietary fintech, BLUE (“Borrower Lender Underwriting Environment”). Loan Mantra, Powered by BLUE, is next-level finance: a one-stop-shop for business borrowers to secure traditional, SBA or MCA financing from trusted lenders in a secure, collaborative and transparent platform.

  After graduating from Ithaca College in Finance, Tulshan began his banking career at Merrill Lynch in New York City. He spent more than a decade in the Currencies, Commodities and Investments Group where he also worked with global asset-backed securities, structured products and principal investments. Here, he also originated and underwrote deals valuated near $25 million and structured Series A and B financing.

  When the market crashed in 2008, Raj saw a significant opportunity to fix the fractured lending ecosystem. Soon thereafter, he sought after and completed an MBA from the Said School at Oxford University and began developing Loan Mantra. His goal was to remove the silos that exist between lender and borrower using secure financial technology. Though Tulshan continues to be iterative with his fintech, meeting current demands of both market and borrower, his professional mission and good- natured approach with clients remain the same. In this, Loan Mantra displays its founder ’s proud partnership between best-in-class fintech and top-marks human experts. Time-and-again, 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

  Loan Mantra is a financial services company designed to serve small and medium businesses with offices in New Jersey, Charleston, SC and New York. At Loan Mantra your success is our 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 the US.  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 or 1.855.700.BLUE (2583)

BREWERY AS A BUSINESS: Important Points to Consider

Cyndi

By: Jess Perkins

man writing on paper

As an experienced brewery owner or manager, you will agree that starting a brewery is easy; running one is not. There are many different things to consider and plan for when running a brewery, and many of those things only become immediately apparent once you are running a brewery. This article will discuss the major issues that any brewery needs to consider. They are not all equally important; some may even be seen as trivial, but each case has been a stumbling block for at least one brewery in the past.

Staffing

  Employees of a brewery are so crucial to the success or failure of a brewery. There are several points to consider when hiring employees for your brewery. You will want people who are motivated, responsible, professional, and of course, good at their job.

  It’s important to remember that if you have a small number of employees, you must compromise on at least one of these positions because there aren’t enough people out there with the skills of a great brewer, accountant, salesperson, and bar-tender all rolled into one. It’s not unusual for a brewery to have several business partners who take on different business roles, but this leaves some positions understaffed or unfilled.

  An important point to consider when hiring is that not all employees want to work full-time hours. You need to be able to offer flexible schedules and part-time positions as well as full-time ones. Employee scheduling and planning for business needs/periods throughout the year is a difficult skill and something that requires good time management.

  Employee training is crucial in the brewing business. It is expensive and time-consuming to train new employees, so you want to ensure that the person you hire will be successful. You don’t generally find people willing to work for free, so training costs do fall on the brewery. The more money you invest in your employees, the better they will perform their jobs — it’s as simple as that.

Labor Laws

  It would be wise to familiarize yourself with labor laws in your geographical location, country, and even state/province (if applicable). The U.S., for example, has very different laws in each state, resulting in a complex web of labor laws that can be difficult to navigate through. There are also different laws for different types of employees, e.g., full-time vs. part-time or salaried vs. hourly.

 Breweries that hire non-exempt employees (i.e., those who get overtime pay) should become familiar with the Fair Labor Standards Act (FLSA), which outlines the rules and regulations relative to paying overtime, minimum wage, and child labor.

  Breweries that hire exempt employees (i.e., those who do not get overtime pay) should become familiar with the Internal Revenue Service’s guidelines of what qualifies an employee for “exempt” status. For example, managers may be eligible as exempt under some circumstances, but it is wise to consult with a tax professional if you are unsure.

Pricing

  There are many different ways to price your beer. There is a powerful perception in the craft brewing industry that all breweries sell their product for “too cheap,” and part of the job of a brewery is to educate consumers on what good beer costs. In fact, some brewers go as far as saying that if you can’t afford their beer, you probably can’t afford craft beer.

  There are many factors to consider when deciding on a price for your product, not the least of which is competing in your market. Price too high and no one will buy your beer, price too low and you may lose money or have to discount the beer very frequently to move it off the shelf — another challenge altogether.

  In addition to that, you have to take into account other factors such as overheads costs (keg size, pour size). You should also understand the difference between pricing off-premise and on-premise bottles and cans. At Untappd, there’s a beer pricing guide that is worth a read for future reference.

  Regardless of how you price your beer, it is a fact that the craft brewing industry is a volume or “spread” business. Very few breweries make money, but those that sell beer to enough people make a decent income at a good spread. If you look at the National Brewers Association’s list of the top 50 craft breweries in the U.S., it becomes apparent that volume is king. Very few of these breweries make significant profits, but they are still thriving because the spread between their production costs and retail prices is greater than most other beer manufacturers.

Branding

  Branding is an essential aspect of running a brewery that includes everything from your logo and beer labels to where you sell your beer. It also involves how you market, advertise and promote yourself. An excellent way to think about it is the total image or “face” of your business. Breweries also have to think about consistency in their branding across multiple locations.

  There is a lot of money and effort involved in making sure that all your beers, logos, labels, and promotional materials are consistent from location to location. If you own more than one brewery, it is almost impossible to create a consistent image between them.

  Craft brewing is an industry that has been growing exponentially for several years. While it is a great time to open a brewery, staying relevant and growing your business can be equally challenging. Many challenges have come along with the current craft beer explosion, not the least of which is keeping up with demand. It’s no secret that many breweries find themselves struggling to meet the demand for their product.

Taxes

  Breweries have a general misconception that they don’t have to pay taxes on top of the price increases they charge for their beers when in fact, they do. You can avoid paying taxes somehow, but it is not advisable, and the penalties are severe if you don’t follow proper procedures by filing quarterly estimated tax returns.

  Brewers must also pay close attention to the Alcohol and Tobacco Tax and Trade Bureau (TTB).

  Once a brewery has sold its first keg of beer, it will need to get Brewer’s Notice required for breweries to sell beer. The TTB also requires brewers who produce more than 100,000 barrels per year to file an annual report and pay a fee.

Tax rebates for breweries are rare, but there are some. The primary way breweries can reduce their taxes is through tax credits usually applied to capital expenditures or new equipment. These credits are offered by the federal government yearly, and every brewery should apply for them.

Competition

  Brewery owners should always think about how they can differentiate themselves from other breweries in their local market. The more you know about the competition, the easier it is to compete with them. You will need to consider your price points, your unique selling proposition, and what makes your brewery stand out from others. To do this, you’ll want to collect as much information as you can about your competition. It doesn’t end there. Once you have a large enough customer base, you’ll notice that many of them will want to know how your beer is made, especially if they are true connoisseurs.  

  Brewery owners should also be aware of what their competitors are doing and what the market will bear. You have to know when to compete with other breweries and when you should let them fight amongst themselves while you keep your focus on growing your customer base. Brewery owners who are too aggressive in competing against other breweries may alienate customers and create bad press for their company.

Growth and Expansion

  Growth is vital for breweries, but it shouldn’t be the only focus. You need to think about how you can grow your brand and maintain your current customer base while still maintaining product quality and consistency and avoiding the depletion of raw materials as much as possible. Successful brewery owners know that growth is not always good and that some microbreweries have been forced to close their doors because they grew too fast.

  Brewery owners should think about the total market for craft beer and how it is evolving, not just your little bubble of sales. They need to be aware of what the current trends are and stay ahead of them. As new breweries pop up, you’ll want to ensure that your brand is strong enough to stay relevant in your local craft beer scene. Making sure that you are always ahead of the curve will help your brewery grow and look forward into the future rather than behind at all of the things you used to do

  Brewery owners and managers can’t just rest on their laurels and expect success to keep coming. They have to engage in the marketplace actively and stay ahead of trends or be one step behind them. You also need to try new things that you think will work despite what your competition is doing. Most importantly: never lose sight of your goals and vision and stay consistent with it. No plan will be perfect, but that shouldn’t stop you from trying your best to get there.

Assessing the State of Craft and Specialty Beer Distribution Post-Covid

Cyndi

By: Becky Garrison

man carrying stack of beer on his shoulder

According to the Brewers Association, overall U.S. beer volume sales were down 3% in 2020, while craft brewer volume sales declined 9%, lowering small and independent brewers’ share of the U.S. beer market by volume to 12.3%. Retail dollar sales of craft decreased 22% to $22.2 billion and now account for just under 24% of the $94 billion U.S. beer market (previously $116 billion).

  According to their analysis, the primary reason for this overall sales decline was the shift in beer volume from bars and restaurants to packaged sales. Given this shift, how did craft beer distribution change during this ongoing global pandemic?

Half Time Beverage

  Half Time Beverage features over 4,000 craft beers and ciders from over 800 breweries across 50 countries. They sell via two New York based retail stores and their online business, a convenience that helped them during the worst of the pandemic.

  “The fact that we were able to deliver the best in craft beer to people’s doorsteps result-ed in an increased amount of purchases from both existing and new customers who ordered from Half Time during Covid,” said Jason Daniels, Half Time Beverage’s Chief Operating Officer.

  During Covid, Half Time had less availability in terms of seasonal releases such as Pumpkin Beer. “We had a lot of challenges in getting seasonal products this year as craft beer manufacturers are focused on making and distributing their core product releases,” Daniels said.

  Moving forward, Daniels does not foresee any changes to their marketing strategies, adding that Covid changed buying behaviors, specifically with a significant increase in online shopping. “We anticipate this will continue as things open up. The high availability of online goods and shopping amplified everyone’s ability to shop in different ways successfully.”

Tavour

  Tavour, a Seattle-based craft beer distributor, gets its beers directly from craft breweries. Once these products arrive at their facility in Washington State, they market and ship them to their members across the United States.

  During Covid, they implemented major safety modifications, including creating social distancing measures and increased sanitation for workers and the beers they distribute.

  Throughout the pandemic, Tavour ended up increasing its sales threefold. They attribute this growth to their SEO status increasing significantly, leading the company to be listed in the top five searches for craft beer delivery.

  They also observed that since people could not attend breweries or beer festivals in person, they were looking for new ways to try craft beer. Tavour filled this need with accurate tasting notes for all their offerings, capitalizing on their bevy of product samples and quality taste testers. These notes enabled their customers to have a better idea of what they were buying, even though they could not sample the beers themselves.

  While Tavour does not have any firm dates regarding when in-person events can happen again, they hope to resume them in 2022. Currently, they are working to help put on the Barrel and Flow Festival, a Pittsburgh-based celebration of black arts and artists.

Localized Craft Beer Distribution

  As the owner and sole proprietor of Packmule Beverage, Brian Balland buys from breweries that self distribute in Washington State and Oregon and then sells these beers directly to consumers. He delivers the orders to select breweries throughout Washington State, where customers can then go pick them up.

  He developed this niche, direct-to-consumer service for Pacific Northwest craft beer aficionados who want to sample beers from smaller breweries that only have these offerings available at their brewery but are too remote for them to visit on a regular basis. 

  Initially, Balland began this service by working with brewers within his circle. Later he expanded to include requests from customers for specific breweries.

  While he launched Packmule in September 2020, Balland conceived of this service pre-Covid. However, he said, “Covid made it easier to try new things and made consumers a little more malleable to trying new ideas rather than doing things the old way.”

  Since launching this service, Balland estimated he has pivoted twenty times, trying to figure out what will work best for the consumer. Moving forward, Balland plans to con-tinue offering Packmule’s services for consumers in the Seattle and Portland area.

DIY Beer Distribution

  Given that both owners of StormBreaker Brewing in Portland, Oregon, have experience working for a distributor or a logistics company, they chose to apply these skills in assessing how to distribute their award-winning craft beer during the global pandemic. After researching the cost benefits of various distribution models, they concluded that a self-distribution model worked best for them. So, they launched their self delivery ser-vice on March 17, 2020, right after Oregon issued a stay-at-home order, forcing bars and restaurants to close statewide.

  StormBreaker already had an active website for customers to order their beer and mer-chandise online, so they did not incur many logistical issues when launching their delivery service. They set up the ordering platform, and within days they were delivering to customers’ homes and establishments that remained open.

  According to co-founder Dan Malech, “The biggest advantage we have is complete con-trol of our product from inception to delivery. We have an amazing range of flexibility of what we sell, where we sell and when we sell.”

  This DIY model allowed them to deliver beer to their customers with very little notice. Malech cites an example where, during a bad snow and ice storm, the brewpubs around town that remained open were running out of beer. No one else was delivering.

  “We received a ton of calls, hopped in our vehicles, and made many new and lasting customers. I mean, we’re called StormBreaker!”

  While StormBreaker’s beers can be found in retail and grocery stores such as Whole Foods, New Seasons, Market of Choice and most regional bottle shops, some retailers won’t work with them. Also, they cannot approach certain parts of the United States without a distributor.

  “There were too many advantages to self distribution for a company of our size to ig-nore,” Malech said.

  Currently, Stormbreaker has dedicated staff to fulfill and deliver their online orders Mondays through Saturdays. They offer home delivery to the Greater Portland area, with their sales team doing periodic drops to Bend, Oregon and Seattle, Washington. Also, they can ship beers via UPS to those states that permit online sales. For all other out-of-state and greater Oregon sales, they partner with Bevv, Packmule, Drizzly and Tavour, which allows them to have a larger reach both regionally and throughout the country.

Merchant du Vin: Specialty Beer Importer

  Seattle based Merchant du Vin noticed that the distribution of their specialty beers increased in retail stores due to more consumers drinking beers at home during the pandemic, causing their overall sales to increase.

  On the other hand, bar and restaurants sales decreased when these establishments were closed due to Covid-19 restrictions. For example, Orval Trappist Ale is one of the most popular imported specialty beers Merchant du Vin represents in the U.S. While this beer is available in select stores, the bulk of its sales come from bars and restaurants that carry a small but carefully curated craft beer list.

  In addition, with the closing of on premise sales, there were huge losses of keg sales across the U.S. According to Craig Hartinger, Merchant du Vin’s marketing manager, “We actually fared better than some suppliers, but there were hundreds of kegs that we couldn’t sell.”

  Merchant du Vin also lost their ability for their beer representatives to present beers in person to potential outlets, as well as opportunities for in-person consumer tastings. “It took a while to get our online meetings up to speed,” Hartinger said.

  When regions open up, Merchant du Vin plans on continuing their online connections, resuming in person visits and reducing their keg options. Once events can be held in-person, they plan on exhibiting their wares as applicable, such as their Samuel Smith ciders, which they featured at Seattle Ciderfest pre-Covid.

Types of New Software & Technology in the Beverage Industry

Cyndi

By: Alyssa L. Ochs

statistics appearing on iphone

Everything is going high-tech these days, and the craft beverage industry is no exception. If you work in this industry, staying updated on the newest technology will help you make smart decisions for your business. Not all forms of technology make sense for every beverage business, but the benefits of familiarizing yourself with what’s on the market will pay off in the long term.

How Technology Can Improve Beverage Production

  Although the processes of making beer and spirits haven’t changed much over the years, many smart technology options are available to help with everything from product-tracking to label-making to helping consumers connect with brands interactively. Whether you’re looking for help with beverage planning, supply purchasing, production assistance or quality control, there’s likely a tech-savvy solution.

  In the front of the house, technology makes it possible for customers to order drinks via touchscreen rather than through a human server. Behind the scenes, it allows tracking and data management for traceability and knowing what’s in demand. Breweries and distilleries may be interested in learning how to print 3D materials, such as creative artwork for glasses. Blockchain technology can improve trackability across the supply chain and assist producers in better adhering to regulations. Many companies use software platforms to ensure they meet compliance standards.

  Many breweries and distilleries would benefit from upgrading their data management systems to eliminate time-consuming and error-prone spreadsheets. A sound data management system can help producers with sales, distribution, production metrics and demand analytics to better understand what and when to order. Cloud-based software is often preferred by breweries and distilleries because the data can be accessed from anywhere, regularly updated by a vendor and maintained by a professional IT team. Pieces of technology should work together with existing task management apps, such as Trello, and communication apps, like Slack, that your team uses.

  Another use of technology in the industry involves mobile apps to integrate different data points, such as diagnostics, GPS, electronic logs and temperature controls. Artificial intelligence data can develop new flavors based on predictions of what consumers want. AI is also being used to improve quality control through the use of sensors and cameras.

In today’s era of staffing shortages, technology can be utilized to train staff, retain the workforce and recruit new talent when resources are strained. Beverage-makers may also use technology to expand where they sell products to lessen their dependence on traditional distribution channels.

Technology Spotlight: Refractometers

  Based in Solon, Ohio, MISCO designs and commercializes digital handheld and inline process refractometers for industries requiring quantitative determination of fluid concentration and quality. MISCO has been in the refractometer field for four decades and is the only U.S. manufacturer of digital handheld refractometers. It is actively developing new technologies to bring even greater usefulness of refractometry to its markets.

  Mark Keck, Chief Commercial Officer for MISCO, told Beverage Master Magazine that MISCO digital handheld units are ideal for generating immediate results anywhere in the operation. He said they can be programmed with up to five measurement scales from an extensive scale library to provide customers with a device tailored to their exact testing requirements.

  “This feature is especially useful for operations that produce a range of products, eliminating the need for multiple units with a single readout capability,” Keck said.

  Meanwhile, inline process refractometers are best for larger operations and give continuous readings that can be output to any data capture system.

  “For breweries, MISCO has developed a set of measurement scales that were scientifically derived from a complex sugar profile specific to wort,” Keck said. “Other refractometers base their readings on sucrose, which is why using a correction factor is required when using these units. MISCO Pro-Brewing Scales account for the wort’s complex sugar profile, which includes maltose, maltotriose, dextrose, fructose, sucrose and other materials, eliminating the need for correction factors and providing more accurate results.”

  Recently, there have been advances and innovations in refractometry that breweries and distilleries may find helpful.

  “Because every operation has unique testing requirements, MISCO has developed a build-your-own tool on its website to allow customers to easily design and order digital handheld refractometers with programming they select from our large measurement scale library,” said Keck. “In addition, we are developing new refractometers that utilize technologies that are part of the Industry 4.0 paradigm for improvements in operations, automation and communication.”

  Even when beverage-related technology looks and sounds intriguing and exciting on the surface, there is little benefit to trying it just for the sake of novelty. Keck told Beverage Master Magazine that “spyglass-style” analog refractometers are still commonly used in the industry, but these devices have numerous limitations compared to digital units, such as reading subjectivity, precision and durability.

  “When upgrading to a digital refractometer, or even considering a different digital unit, customers would want a unit that is easy to use, employs quality materials, is durable, has automatic temperature compensation, is easy to calibrate and provides readings that match the fluid testing requirements of the operation,” Keck said. “Lastly, product support should also be considered – where the unit would be serviced for routine maintenance and calibration certification.”

  Whether refractometers or any other technology, learn about the products and choose those that set themselves apart from the competition. Depending on the device, this could be related to durability, level of precision or ease of use.

  “Our optics utilize sapphire prisms for high precision, improved temperature equilibration and durability,” Keck said. “Signal detection is achieved with high-definition detectors that provide up to eight times the resolution of other handheld units. Lastly, our commitment to Lean Manufacturing principles and adoption of ISO guidelines ensures that the quality of our products is second to none.”

Benefits of Trying New Software and Technology

  Even with practical considerations in mind, producers benefit from having a forward-thinking approach to brewing and distilling and an open-mindedness about technology solutions that may help your business. Technology can help you be more flexible with production, consume less energy for an eco-friendly operation and make the quality of beer and spirits better.

  Certain pieces of software and technology help integrate functions and manage assets more efficiently, optimize production lines for greater control over processes and attract the attention of tech-savvy consumers. When used correctly, technology can help breweries and distilleries be competitive in an oversaturated market. A good technology solution exists for every brewer and distiller, whether that involves on-premise software, cloud-based software, mobile applications or specialized devices, such as refractometers.

Choosing the Right Tech Upgrades for Your Business

  It’s not always practical to take on multiple types of new technology simultaneously, but a few innovations are worth looking into further. For example, there are some excellent platforms for brewery and distillery management software, and food-ordering software for establishments serving food and drinks. Online restaurant POS systems accept instant payments and provide food traceability solutions for inventory and beverage distribution management solutions. Beverage warehouse and logistics management systems, as well as “Internet of Things” solutions to keep track of food safety recalls and shelf-life management, can be addressed with the latest and greatest technology available to the industry.

  “Tools are available or in development that can impact productivity, improve product quality and consistency and result in greater operational efficiency,” said Keck. “MISCO is integrating many of these technologies into our refractometer to allow our customers to do what they do better.”