Category: Brewery

Mixology Meets Technology: Delivering Value Through Flavor Innovation

Cyndi

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

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

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

Premiumization Through Exciting Flavors

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

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

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

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

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

Leveraging Flavor Science to Deliver Value in Alcoholic Beverages

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

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

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

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

Lighter Libations: A Healthier Approach to Drinking

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

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

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

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

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

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

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

RTDs and Hard Seltzers – the Epicenter of Flavor Innovation

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

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

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

Abita Brewing: Louisiana Life, in a Can

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

By: Gerald Dlubala

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

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

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

Local Ingredients, Artesian Spring Water and Community Involvement Are Key

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Abita’s Future Is Exciting, Innovative & Tasty

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

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

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

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

Abita Brewing Company

21084 Hwy 36 • Covington, LA. 70433

(985) 893-3143 • www.abita.com

Keg Washing: Working Smarter to Conquer an Essential Brewery Task

Cyndi
kegs on conveyor belt going through wash machine

By: Cheryl Gray

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Uncorking Accessibility:  Ensuring Your Website Complies with the ADA

Cyndi

By: Vanessa Ing, Farella Braun + Martel

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

Why is web accessibility important?

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

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

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

Is your beverage company a “public accommodation” business?

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

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

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

What are some website accessibility barriers?

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

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

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

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

Who can sue beverage companies?

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

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

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

What are the rules for website accessibility?

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

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

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

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

Looking Ahead

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

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

Vannesa Ing headshot

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

Financial Literacy Training

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By: Kary at Beerbusinessfinance.com

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

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

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

Here’s how our financial literacy training works:

Quarterly financial meetings

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

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

Library of wholesaler financial training courses

Access over a dozen wholesaler financial training courses.

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

Weekly beer wholesaler financial newsletter

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

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

Beer wholesaler webinars, workshops and podcasts

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

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

Planning templates, models, and spreadsheets

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

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

Yours in financial literacy,

Kary

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

Forecasting Business Plans in Uncertain Times

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How to Plan for the Fiscal Future in 2024

a robot hand and a human hand both pointing to a dollar sign

By: Raj Tulshan, Loan Mantra

Over the past few years, small business owners have seen dramatic changes in the financial landscape, with an array of challenges and an uncertain future. Several years of global disruption have left small businesses on a rollercoaster ride, facing a global pandemic, supply chain disruptions and ongoing labor shortages. Recently, despite rising inflation and bank failures, small businesses experienced some good news, with cryptocurrency going mainstream, an increase in diverse small business owners, a rise of Artificial Intelligence (AI) in the workplace and more. As we welcome 2024, let’s review a few highlights of 2023.

In 2023 small businesses reported becoming more optimistic, predicted a growth in revenue and planned to hire more staff in the coming year.  They anticipated making higher investments in their companies moving forward. What’s more, we saw an increase in diversity among small business owners, and a rise in the number of small businesses across the country, which account for an impressive 99.9% of the businesses in the U.S. 

While the economic outlook improved in 2023, there are no guarantees that 2024 will be the same. And, as the new year begins, many businesses remain hesitant about the road ahead. It’s human nature to want to predict the future – and in the business world, vital for owners to have a plan to move forward. The one constant is change. Financial service professionals can help business owners and leaders manage these economic and cultural shifts to stay adaptive and resilient during the coming year and for years to come. While no financial expert has a crystal ball, there are key factors that impact the fiscal future. Here are financial considerations for making business plans and strategies that will work today and tomorrow.

The Rise of Artificial Intelligence (AI) and Machine Learning (ML)

AI and ML technologies are already being used in fraud detection and investment research in the Fintech industry. ChatGPT is a new tool that is generating interest in average consumers who have interacted with it out of curiosity. Chatbots are already augmenting customer-facing service roles, increasing speed and simplifying complex transactions. Personal finance, budgeting, operations and management apps are becoming integral for business owners who want to use business data to take control of revenue and meet financial goals. Adoption of these technologies and resulting changes present large business opportunities – and a quantum shift for the business over the long term.

Digital Payments and the Blockchain

As was seen during the pandemic, the shift to digital payments continues to accelerate. Further declines in cash usage will be seen with an upsurge in alternative payment methods, including cryptocurrencies. In 2023 we saw cryptocurrencies go mainstream as patrons used crypto to purchase goods and services, real estate and more. At the same time, governments worldwide are exploring cryptocurrency regulations.  In 2024, expect to see clearer guidelines and potentially greater acceptance of cryptocurrencies in mainstream finance. In addition, the standardization of one central currency may appear called the Central Bank Digital Currency or CBDC.

The CBDC has become a highly charged issue as adoption of it would be controlled by a central entity with likely ties to a social credit system for consumers. Consumer advocates warn that the use of this would put unfettered power and control in the hands of those controlling it. The World Economic Forum states that a CBDC would forever change the relationship between the public and their money with an end to private accounts and choice over what is purchased by individuals.  The WEF states their plans are to monitor every purchase made and eventually restrict what a person could spend their money on and when. This means proposing limitations on travel, dictating how much protein is consumed per week or even collecting carbon taxes directly from accounts without personal choices of the account holders. A CBDC account could be turned on and off at will, restricted based on that individual’s social behaviors, political leanings, religious belief systems and health choices (imposing mandatory experimental vaccines, for instance) and penalize those that don’t go along with centralized dictates.

Interest Rates and Inflation

High interest rates and inflation have a direct impact on those that seek commercial loans and how much funding is available. With an economic constriction, the availability of credit opportunities for business will lessen. As challenges mount, it will be more important to have a financial education. Financial literacy is gaining recognition as a crucial life skill. In 2024, there will be a growing emphasis on financial education, with schools, organizations and governments working to enhance people’s understanding of money management.

Redefining Retirement

The concept of retirement is evolving.  More individuals are opting for phased retirement or exploring flexible work options.  This trend will continue in 2024 as people seek purposeful post-retirement activities and income streams. People will also seek more control over their money in the coming year with the use of personal financial apps becoming integral for money management.  In 2024, expect these apps to offer more sophisticated features, from AI-driven budgeting to customized investment advice, empowering users to take control of their finances.

It’s also vital to note that in the wake of the upcoming election, social security and Medicare reform will be at the bottom of the United States government’s political to-do list. Alternatively, on October 31 2023, the White House announced a Retirement Security Rule, which legally protects consumers seeking financial guidance.

Sustainable investing is also gaining momentum.  Investors are seeking opportunities that align with their values, focusing on companies making a positive environmental and societal impact. In 2024, this trend will continue to grow as investors emphasize responsible investment choices.

Hitting the Debt Ceiling.

As the past year saw banks collapse, new debt ceiling highs and potential interruptions of government created anxiety and lack of confidence in political leaders. These actions will give rise to new bank systems, options and alternatives to banking. Decentralized Finance (defi) is also reshaping traditional banking and finance.  In 2024, we can anticipate more DeFi projects and platforms emerging, offering decentralized lending, borrowing and trading options.

Economists Predict Soft Landing

According to J.P. Morgan Wealth Management, Looking into 2024, strategists now expect that while the U.S. economy is likely to slow, it should avoid recession. The lower likelihood of a painful economic crash should help with financial decision making going into the new year. Other economists are skeptical that the U.S. can maintain economic growth with interest rates so high. The Conference Board predicts slow GDP growth slowing means a “shallow recession” in the first half of the year. The nonprofit research group said wage growth is slowing, pandemic savings are declining, and U.S. household debt is spiking.

At the same time the labor market is resilient heading into the new year. The unemployment rate has risen to just 3.8%, and the economy has averaged more than 250,000 jobs created per month over the past three months. The Federal Open Market Committee projects the U.S. unemployment rate will average a healthy 4.1% in 2024, still well below its long-term average of around 5.7%. The firm said softening consumption, coupled with rising interest rates, will also weigh on U.S. business investment in early 2024.

With these points in mind, plan for the coming year knowing that the ability to be flexible, adaptable and agile will be of significant benefit.

Raj Tulshan is founder and managing partner at www.loanmantra.com. Reach him via Linked-in at https://www.linkedin.com/in/tulshan/.

How to Disrupt the Beverage Industry with New Marketing Strategies

Cyndi
Jorge Olson headshot

By Jorge Olson — Co-founder & CMO of Hempacco and Green Globe International, Author of “Build Your Beverage Empire”

The beverage industry is growing rapidly, with innovators entering the space year after year touting the next big idea. The global beverages market is expected to grow from $3.56 trillion in 2023 to $4.39 trillion by 2028 at a CAGR of 4.26%, allowing room for disruptors to enter the space, especially considering two of the largest growing categories in the beverage industry are hemp beverages and mushroom beverages.

If you are set on being one of those disruptive entities in the beverage industry, you will want to devise some novel marketing strategies that will set them apart from the competition. Those entering the beverage industry or seeking to retool their marketing approach need to consider several factors, including budget, target audience, and branding.

Entering today’s beverage industry

The beverage industry comprises a litany of products, from ales and liquors to flavored seltzers, hard teas and lemonades, and more. As consumer demand grows, innovators in the beverage space churn out an abundance of ever-expanding options, and as markets continue to grow, more opportunities arise for beverage companies to get a foothold.

With over 2,000 beverage companies in the United States alone, effective marketing is more important than ever before. Marketing builds awareness of your brand and is especially integral to launching and growing new businesses within the beverage space.

The cost of launching and scaling a new business — especially one tied to a physical product — can be high. If you are seeking to disrupt a long-standing industry with a new product idea, you must be savvy about your marketing budget to have the greatest impact and bang for your buck.

Every marketing strategy begins with a great idea that should be formed with consideration to what consumers are seeking but not finding in the current market. The beverage’s formula should be consistent before being unleashed onto the market, and the opinions of experts and stakeholders should also be considered. Being thoughtful about your actions before launching can help you avoid costly (or embarrassing) mistakes.

The beverage industry is incredibly competitive, but with the right product and the right marketing strategies, your product can make considerable waves.

Innovative marketing approaches

In an industry that can be as crowded as the beverage space, new businesses will be required to think outside of the box concerning marketing approaches. The old standard marketing strategies will not likely garner enough engagement to disrupt such a massive industry.

Savvy marketing can also help consumers create an emotional connection to your brand. Many beverages can be connected to moments or memories for consumers — that bottle of Coca-Cola they shared with their dad on a fishing trip or their very first beer when they turned 21. Tapping into these emotional markers can help elevate a brand and solidify the brand’s story within the current culture.

There are several innovative marketing strategies that your beverage company can leverage, but your chosen strategy (or strategies) should depend on the market you are targeting, your specific product, location, budget, and several other factors. The thoughtful pre-planning discussed in the previous section will help determine the right strategy to meet their goals.

Social media marketing

Social media marketing is nothing new, but it is constantly changing. It seems that with every introduction of a new platform or a change in an algorithm, the goalposts for marketers are moved.

Today’s approach to social media marketing utilizes a variety of platforms for a diversified strategy. TikTok is still going strong as the platform of choice for many Gen Zers, but older generations may still prefer Facebook or Instagram. This means you can capture a larger slice of your target demographic by splitting marketing among the various popular platforms.

Social media is still suitable for quickly sharing content with a large number of people and is still the best way to create a personal connection with your target market. By engaging with people across the platforms, answering questions, and sharing content they want to see, you can grow your social media following and brand recognition.

Even though social media is not a new marketing tactic, it is constantly changing and creating new hurdles for business owners. Remaining aware of changes and best practices will allow you to get the most out of social media use.

AI and new technology

It seems like everywhere you look; artificial intelligence (AI) is taking over. For marketers who know how to harness its power with predictive analytics, AI could revolutionize how products are created specifically for consumers. Through AI technology, consumer products like beverages can be designed to exactly what customers want and marketed to the market at large based on what they want or need.

Through AI-enabled packaging creation, specific segments of a market can be targeted and catered to. Branding, ingredients, feel, and culture can be considered — allowing businesses to elevate their new product above other products in the market.

AI also allows companies to gather data on consumer reactions to marketing campaigns quickly and accurately. With this data, businesses can quickly assess whether a campaign is working — or if they need to shift focus.

High-quality content marketing

The best brands are not just products on a shelf. They are entities with which people develop connections.

To help foster those meaningful connections, businesses should focus on creating high-quality content around their brand. This can include blog content that shares brand-related stories or learning opportunities. It can also include video content showing behind-the-scenes making your beverage product or people enjoying it in real-life scenarios.

The focus of your content marketing should be quality and engagement, so take a look at what your competitors do with their own content marketing and strive to do something different. Quality content marketing can drive new sales, create new customers, and help you unveil new products.

Paid advertising

Like social media, paid advertising is not a new approach but is being approached in new ways. As we enter the new year, video is still ruling the internet, so incorporating video content into your paid online ads will allow your ad to stand out over the ads that feature only static images or simple copy.

When approached correctly — and with your target market always in mind — paid ads can be incredibly effective. In fact, recent studies show that paid YouTube ads are 84% more likely to capture viewer attention than traditional TV ads, which can be far more expensive.

The way people consume media is always changing. Targeting the most viewed platforms with your paid advertisements will ensure better reach and engagement.

Seize the season

It’s an oft-repeated marketing myth that the Coca-Cola company owns the “rights” to Santa Claus. While that is not true, the company did have a hand in creating some of Santa’s most recognizable features for a 1931 marketing campaign. The white beard, the rosy cheeks, and twinkling eyes combined with Coca-Cola’s red and white branding became solidified in the cultural zeitgeist, forever connecting Coca-Cola and Christmas.

Beverage companies are positioned well to seize seasonal marketing opportunities. The dog days of summer go well with a crisp lemonade, while the dead of winter leaves many craving a hot cocoa or hot toddy.

Beverages are a part of gatherings, milestone moments, and seasonal celebrations, no matter the time of year. By connecting emotion with brand recognition, marketers can use seasonal positioning to further their reach.

Brand partnerships

With our hyper-connected world, forging brand partnerships is easier than ever before. Beverage companies have created some famous brand partnerships over time, such as GoPro and Red Bull, or Bonne Bell and Dr. Pepper.

With a brand partnership, a mutually beneficial collaboration is formed. New products can leverage the popularity of the established brand, and the partner company can have something novel to share with its audience. Brand partnerships can also allow a beverage company to create exciting new taste combinations or product ideas.

If you are interested in finding another company for a brand partnership, consider their target audience and brand identity. That potential partner’s goals should match your own to forge a successful collaboration.

Engaging events

When a beverage hits the scene, the creators often host a launch event to introduce the beverage to the market. This marketing strategy is still valid, but beverage creators seeking to disrupt the status quo should put a lot of time and effort into making their event stand out among the competition.

Knowing your audience lets you know who to invite to your event to get your new beverage in front of the right people. The proper venue and the right theme can also help elevate your event from just a simple launch to a night no one will soon forget. However, hosting elaborate launch events can be pricey, so an ROI analysis should be performed before you go all-in on the “event of the century.”

The goal of any marketing campaign is to increase visibility and engagement surrounding your new product. If you aim to disrupt an industry as long-standing and — let’s face it — crowded as the beverage industry, your marketing approach will need to be thoughtful, well-researched, and novel if you wish for it to make the intended impact.

By considering emerging marketing approaches and developing new takes on old marketing standards, a new beverage business with a great product idea can thrive.

Barrel Storage Tips for Breweries and Distilleries

Cyndi
stack of barrels in a warehouse

By Alyssa L. Ochs

Breweries and distilleries use barrels for aging, to achieve oxidation and charring and to add distinctive flavors to their products. But an important factor to remember is how you store the barrels because storage can affect flavors, textures and the length of the brewing or distilling process.

To learn more about this issue and how modern producers approach barrel storage, we connected with a few brewers and distillers to discuss common challenges, best practices and expert advice.

Where to Store Barrels

One common place to store barrels is a racked warehouse, also known as a rickhouse or rackhouse. With this method, craft beverage companies typically hold barrels horizontally on racks with room for air to circulate around the sides and ends. Racked warehouse buildings are made from brick, wood, tin or concrete and may be subject to seasonal fluctuations due to a lack of climate control.

Barrels on lower racks have more consistent yearly temperatures, and the racks are usually six to nine barrels high per floor in a multi-story structure. Getting the barrels in and out of the racks can be labor-intensive. So, some producers use single-story or rickhouses up to four stories tall instead for greater ease and more consistent aging.

Another option for beverage producers is palletized warehouses, where employees place barrels on large, wooden pallets, usually four to six barrels per pallet. Employees can store them vertically with pallets on top of each other to save space and labor. Then, they can move multiple barrels on pallets at a time with a forklift, usually six high per floor. Since restricted airflow may alter the aging process, companies may need to install large fans in the area. This method works best in cool and humid climates without extreme temperature changes. However, there is a greater chance of leaks with pallets stacked on top of each other in a palletized warehouse.

Meanwhile, dunnage warehouses are a well-established form of barrel storage tied to old Scottish traditions. A dunnage warehouse is a single-floor warehouse that offers a beautiful display and consistent maturation over many years. This method is commonly used for old and rare whiskies. The warehouse walls are typically made from stone or brick to prevent large temperature swings that could affect the flavors.

The Importance of Barrel Storage

It is helpful to understand the various methods of barrel storage so that your business can improve flavor profiles and add in flavors like oak, vanilla and fruit. Part of the barrel cleaning and maintenance process also involves checking and cleaning the inside and outside of barrels received, checking for leaks, making repairs and using heat or chemicals to treat them before the first fill. For example, staff members can light a sulfur burner inside a barrel to preserve it and ensure no mold growth, but not if the barrel previously aged spirits. You’ll need to close the bunghole quickly, avoid breathing in the toxic sulfur dioxide and then store the barrels in a cool and dry place, checking them occasionally because gas tends to escape within a few months.

Alternatively, producers can use a citric acid solution to protect barrels from microbial growth for six months or longer to keep the barrels moist. Another vital thing to remember is that storage racks and warehouses must be built with noncombustible materials, such as reinforced concrete, masonry or fireproof steel. Also, electrical systems should be at least five feet above the top of the highest storage level for safety purposes.

What Works for Distillers and Brewers

Matt Cunningham, founder and proprietor of Old Glory Distilling Co. in Clarksville, Tennessee, told Beverage Master that his company palletizes all of its barrels. Old Glory Distilling opened in 2016 and specializes in small-batch Tennessee whiskey and bourbon.

“We use four barrel pallets designed specifically for the storage of barrels to be able to stack them six high in columns,” Cunningham said. “We use a system in our warehouse of rows and columns for organization and safety. We have used some racks before where barrels are laid down, but the amount of space those racks took up and the difficulty handling them didn’t make sense when we built our 10,000-barrel barrel house and made plans for a second one.”

Cunningham said that they plan to take a similar approach to their second barrel house. He also said that the most important thing to keep in mind about barrel storage for spirits is ensuring airflow around the barrels and not enclosing them in a space that does not have any airflow.

“As those barrels are breathing, you don’t want them to become stagnant,” Cunningham said. “This is something we found out and paid heed to some people who used storage containers in the past because they were cheap and readily available. While you can store barrels in them, just make sure they are ventilated and not sealed up. If you are going to use those and your jurisdiction allows for it, you need to ensure good air flow.”

Bryan Smith, the master distiller and owner of Hard Truth Distilling Co. in Nashville, Indiana, told Beverage Master that his company also stores barrels in a palletized barrel warehouse. Hard Truth Distilling began distilling spirits in 2015. It produces over 20 premium spirits and quickly outgrew its original production facility. In 2017, Hard Truth moved into its current 50,000-square-foot building with a state-of-the-art Vendome Copper & Brass distilling system. Its wooded, 325-acre destination campus in Brown County, Indiana also serves as an artist colony and tourist destination surrounded by natural beauty.

“Storing the barrels vertically and on pallets makes our ability to pull barrels for sampling and for blends far more efficient and safe,” Smith said. “Safety is the first consideration, followed by environmental conditions favorable to shape the whiskey to the flavor profile. While monitoring temperature and humidity, for us, a one-story barrel warehouse gives us more consistency over time.”

Many breweries around the U.S. also use barrels and must plan ahead for their storage needs. One example is Alpha Michigan Brewing Company, located in the smallest village in America with a brewery: Alpha, Michigan, which had a population of 126 at the time of the 2020 census. Alpha Brewery prioritizes community involvement and brews to support local organizations, hosting fundraisers and sourcing ingredients from local farmers.

Mike Bjork from Alpha Michigan Brewing Company told us, “We store full barrels in our walk-in cooler and empty, clean barrels in the office with limited space.” He said the most important thing to remember about barrel storage is to “keep the clean and dirty barrels separated.”

The Biggest Issue with Barrel Storage

The biggest challenge that Old Glory Distillery has faced with barrel storage relates to space concerns and a lack of storage space.

“When you start off, you have a designated space where you’re going to store your barrels, but next thing you know, it’s full,” Cunningham from Old Glory Distilling said. “Make sure storage is in excess of what you need because it’s going to fill up.”

Space has also been an issue for Hard Truth Distilling in recent years.

“Our biggest challenge has been our rate of expansion and being able to keep up with our storage needs,” Smith from Hard Truth said.

On the brewery side, Bjork from Alpha Michigan Brewery shared with Beverage Master that space has been his brewery’s biggest challenge, as well.

Advice About Barrel Storage

Brewers and distillers may be interested to learn about companies offering barrel storage solutions, such as B.R. Distilling Company, which provides bonded warehouse storage on four-barrel pallets and charges a monthly storage rate, plus handling fees. Some barrel storage specialty companies offer additional services, including lab analysis, logistics, sampling and TIB registrations.

Some interesting trends in barrel storage are happening now, such as distilleries moving away from traditional rickhouses and using palletized storage instead. This approach generally makes it easier for employees to move barrels and check on the aging process. Also, the industry has increased awareness about how metal roofs and thin walls can make flavors change when seasons change. Craft beverage companies may consider storage-saving designs in which a rack can be compressed into a stack when empty. Meanwhile, barrel storage walls at distilleries can serve decorative purposes by providing attractive photo backdrops and conversation pieces for guests.

One major piece of advice for brewers and distillers is always to keep the barrel storage warehouse clean and dry. Our experts provide additional tips and advice to guide new businesses and those amid operational transitions.

Cunningham from Old Glory Distilling shared with Beverage Master that his advice is to “allow for more space than what you initially need because you’ll eventually need it later.” He also advised,” You don’t need a bung in the staves if you are going to palletize them, as it creates a possibility for those barrels to leak.”

From Hard Truth Distilling, Smith advised, “Do plenty of research on safety and regulatory requirements in your area, first and foremost. Take into consideration your planned operational space and ability to be able to access barrels, as well as the time you plan to age and the flavor profile that you were targeting. And finally, make sure to build more capacity than you think you might need.”

Bjork from Alpha Michigan Brewing Company’s advice to breweries is similar and follows a common theme throughout the industry. He simply advises new and growing breweries, “Ensure you have sufficient space for all barrel storage.”

High Performance Counts

Cyndi

Experts Supply Craft Brewers and Distillers with Pumps That Set Products in Motion

two men working on pumps outside of a distillery tank

By: Cheryl Gray

Choosing pumps for breweries and distilleries requires consideration of several factors, perhaps none more important than technology. That technology is what propels the liquids that create a successful product for the beer and spirits industries.

When it comes to the ever-changing line-up of products, advanced pump technology is taking the lead in which products find their way into brewery and distillery production lines.

Ampco Pumps Company is one of the manufacturers providing state-of-the-art technology in its pump products. An ISO 9001:2015 Registered Company, Ampco is a spin-off from the original firm, founded in 1914 and headquartered in suburban Milwaukee, Wisconsin, where it manufactures products. Ampco has regional offices throughout the United States and also an international sales, assembly and light fabrication plant in Germany. Additionally, as part of The Krones Group, Ampco Pumps Company has leveraged its position as a member of a global team serving the food and beverage industries.

Ampco Pumps Company has been providing quality centrifugal pumps and positive displacement pumps worldwide for more than 70 years. It is committed to manufacturing quality products, providing excellent customer service and competitive pricing to its customers. It has become the preferred pump provider for some of the most recognized companies across the globe.

For breweries, Ampco says it focuses on maximizing efficiency and portability by engineering pumps that have been incorporated into Ampco carts. The company explains how its carts are tailored to each customer’s specifications and can accommodate any Ampco centrifugal pump, positive displacement pump or blender. It also boasts a wide variety of products to meet the challenges of small and mid-sized craft breweries.

Bob Garner is the engineering manager for Ampco. With more than 30 years of engineering experience with C Series and centrifugal pumps, Garner is very familiar with the challenges that craft breweries face.

“Ampco was hearing from craft brewers about a common leaky pump issue when pumping hot wort,” he said. “They were all using a standard C Series, and it did not matter the brand of pump. So, I looked into the issue closely to find a solution. The result was the development of the CB+ Craft Brew pump, which solved the problem.”

Garner describes why Ampco’s CB+ is so popular among its craft brewery clients.

“It was designed to solve a problem that no one else in the industry was working on,” he said. “The CB+ solution reduces lost product, is easy to maintain and has proven to have longer seal life than a standard C Series, which saves money in the long run. There are also conversion kits available to convert standard C Series to the CB+. The response from customers has been overwhelmingly positive.”

Ampco touts its high priority on pre- and post-sale customer service for its clients. Garner adds that the company’s reputation in this area plays an important role in its growth.

“Providing superior customer service is part of our mission,” he said. “Quick response times from knowledgeable representatives and trained engineers in real time is part of the advantage of working with Ampco. It has been an important part of what put us on the map and how we continue to grow.”

Many of Ampco’s products can be customized to ensure accuracy when it comes to mixing and blending applications. One of those products is the ZPI Positive Displacement Pump. While the product is manufactured to meet the needs of wineries, the company touts it as tough enough for the demands of breweries, including spent yeast with hop material. The ZPI can also handle product handling for harvesting yeast, propagation skids, feeding a centrifuge and cone-to-cone transfer.

FLUX Pumps is another industry leader. FLUX Pumps made its mark when the first electric pump was introduced to the marketplace in 1950, and the name bore the moniker FLUX. Soon after, the company launched the first explosion-proof drum pump for use in hazardous areas. In the decades since, FLUX Pumps has paved the way as one of the frontrunners in drum and container pumping technology.

The company has its headquarters and manufacturing plant in Germany. It has global ties that include six subsidiaries and a comprehensive roster of distribution centers that give FLUX the ability to service clients in more than 100 countries. FLUX Pumps also operates corporate offices in the United States, Belgium, India, Thailand, the United Kingdom and France.

Glenn Mulligan is the president of FLUX Pumps North America. He explains how pump performance helps keep production lines running efficiently. He says his product advice is the same for all craft breweries. Product longevity and performance play important roles because the duo increases productivity by shifting tasks that used to be done by hand to automation.

Recent product releases by FLUX Pumps include the VISCOPOWER product line. These pumps phased out the company’s F550 and F560 pump models.

The newer design was created for easier assembly and dismantling, a change that reduces cleaning and maintenance while simplifying the pump design. VISCOPOWER pumps are designed with a modular configuration that allows for streamlined spare parts, while at the same time, offering a customizable pump design.

FLUX Pumps also offers flow meters and control panels, which can turn a standard drum or tote pump into a one-touch batching/metering system. This technology eliminates the guesswork of dispensing the right amount of product. As Mulligan explains, adding just a few components to a pump can help FLUX Pumps customers come away with an accurate, repeatable dosing product that saves clients time and money by reducing costly mistakes. 

Distillers have some of the same challenges as brewers when it comes to choosing the right pumps to get the job done. Todd Thrasher is the founder and owner of Potomac Distilling Company, located in Washington, D.C.’s waterfront District Wharf. In business since 2018, the industrial distillery is the headquarters for Thrasher’s signature Thrasher’s Rum, which is sold in island-inspired flavor profiles, such as white, spiced, coconut, green spiced and gold.

Thrasher knows a thing or two about what pumps and accessories he needs to create his products, while at the same time ensuring a work environment that is both safe and productive.   For transferring high-proof spirits, Thrasher’s Potomac Distilling Company prefers the SimpleSpirits 49 Air Diaphragm Ethanol Transfer Pump.

“I purchased this pump first because I knew it would handle high ethanol spirits,” he said. “It has been a great piece of equipment in the distillery. I made this specific selection upon research and other industry recommendations.”

The pump is manufactured by Versamatic, headquartered in Mansfield, Ohio. One of Versamatic’s key suppliers is TCW Equipment, which is in California’s Sonoma Valley. In business since 1966, TCW Equipment is a supplier to multiple areas of the beverage industry, including breweries and distilleries.

The SimpleSpirits 49 pumps are ATEX-rated, which means that, when used as instructed, they comply with all safety regulations that govern atmosphere explosive devices. The pumps are equipped with EPDM diaphragms, which are durable and compatible with ethyl alcohol. In addition, the pumps run entirely on compressed air, therefore reducing the threat of static discharge from electrical equipment that could cause fires when encountering flammable vapors. Finally, the pumps can be connected to a ground source in the distillery, ensuring that any naturally occurring static build-up is discharged into the ground.

For low-proof spirits, Thrasher looks to McFinn Technologies out of Kenosha, Wisconsin for its 22060, a self-priming, multiple-speed and reversible-flow direction pump with a standard wireless remote control. 

“This pump was purchased shortly after Potomac Distilling Company opened as I realized that another pump was needed – this is made to move wash that isn’t overproof,” he said. “And it gets used before spirit runs to move the fermentations over to the still.”

The pump’s three-horsepower version features a 1750 TEFC motor and NEMA 4 VFD with a standard stainless-steel cart. This model also features voltage options. Additional pump models by McFinn Technologies include the 20035, 20035CC and the 30080.

There are multiple choices for distilleries and breweries when it comes to choosing pump products and accessories. The decision-making comes down to price, productivity and safety protection in the workspace. Expert companies with years of engineering and scientific knowledge can help. Combining that knowledge with years of experience working with clients in the production of spirits and beer can go a long way toward helping breweries and distilleries make the right moves to move their products to the market.

Flavored Malt Beverages: Origins and Applicable Federal Regulations

Cyndi
6 bottles of different beers lined up on a table

By: Brad Berkman and Louis Terminello, Greenspoon Marder

There is a strange concoction that lurks within the bowels of the brewer’s tank. It is formed with malt, but is not beer, it is something other whose mere mention may frighten beer aficionados to the essence of their being. This mysterious liquid soon slithers through tubes and to the bottling line where 12oz bottles are filled with this ethereal liquid. The bottles make their way to the grocery shelf where it is soon removed from its cold box perch to the refrigerators of eager consumers. There the potion rests until its top is popped and it’s brought to the lips of the drinker. A first sip and this bottled creature metamorphizes to a glorious nectar, causing a love affair that is reflected in astounding Nielsen numbers. To the disappointment of any beer geeks, the flavored malt beverage or FMB is a darling of the brewing industry, not for its purist nature but for the sound of jingling coin that comes from the brewer’s pocketbook after each batch is made and sold and drank and asked for more of. The FMB is a clear consumer favorite.

  The FMB as a category, has an Alcohol and Tobacco Tax and Trade Bureau (TTB), codified definition. Before we get there, however, the reader should be aware that the style of drink isn’t a new phenomenon. The drink made its way first on to the shelves of certain European countries in the late 1990’s, among other places, and caused quite a bit of controversy for its generally sweet flavor profile, small bottle size, and perceived target audience.

Of course, it bears refreshing the memory that these drinks were and are offered as beer alternatives. They are meant to be, in most iterations, a light, flavorful alternative to traditional beers. Initially, they were referred to as alcopops, and now are more commonly called Ready-to Drinks or RTD’s (there are many drinks formulas that fall into the RTD category, including spirits based and non-malt based (see hard seltzer), but certainly FMB’s are a leader in that general category. Another publication reports that beer RTD’s “make up the vast majority of overall RTD’s sales with 42.7% of RTD dollar sales coming from FMB’s.  

  Some early precursors to contemporary FMB’s, the reader may recall, were Smirnoff Ice, WKD and Hoopers Hooch. In fact, this writer recalls from his prior career in “the industry”, travelling to the UK and witnessing the small cold-boxes stationed below virtually every back bar and thinking that the English will drink anything and wondering how long it will take before these drinks make their way across the Atlantic to the shores of the United Sates. Woe is me, if I only had bought stock.

  Well, the answer to the above question is, arguably 1993 with the introduction of Zima by the Coors Brewing Company. Buffs of the history of the drink will clearly remember Zima, (and the pun is intended), as the first clear, citrus-like malt-based beverage to make its way onto the beer shelf. Offered as a light alternative to beer, it had a modicum of success at introduction, but its popularity faded quickly (it was in fact re-introduced in 2017 but sales quickly sputtered out).

  The origins of RTD’s likely stemmed from restrictions on the activities permitted on the brewing premises by federal law. Creative brewers looked to unique formulations using permitted brewers’ ingredients only. A driving force behind limiting ingredients and production processes at a brewery is to ensure that tax revenue generation is not jeopardized. As the reader likely knows, malt is taxed at a different rate than wine which is taxed at a different rate than spirits and never shall the thrice be combined.  I point the reader to the following section of the Internal Revenue Code (the IRC):

26 USC 5411:

  The brewery shall be used under regulations prescribed… for the purpose of producing, packaging, and storing beer, cereal beverages containing less than one-half of 1 percent of alcohol by volume, vitamins, ice, malt, malt sirup, and other byproducts and of soft drinks; for the purpose of processing spent grain, carbon dioxide, and yeast… and for such other purposes as the Secretary by regulation may find will not jeopardize the revenue.

  As we see from the above the purpose of the brewery premises is limited to the production of beer and storing certain brewing materials. Also, the code section below has arguably a more profound limiting effect on the materials permitted on the premises. But here, I caution the reader to pay careful attention to subpart (b) of the following and different code section. It is here that lays the codified origin of the FMB.

 § 25.15 Materials for the Production of Beer

(a) Beer must be brewed from malt or from substitutes for malt. Only rice, grain of any kind, bran, glucose, sugar, and molasses are substitutes for malt. In addition, you may also use the following materials as adjuncts in fermenting beer: honey, fruit, fruit juice, fruit concentrate, herbs, spices, and other food materials.

(b) You may use flavors and other nonbeverage ingredients containing alcohol in producing beer. Flavors and other nonbeverage ingredients containing alcohol may contribute no more than 49% of the overall alcohol content of the finished beer. For example, a finished beer that contains 5.0% alcohol by volume must derive a minimum of 2.55% alcohol by volume from the fermentation of ingredients at the brewery and may derive not more than 2.45% alcohol by volume from the addition of flavors and other nonbeverage ingredients containing alcohol. In the case of beer with an alcohol content of more than 6% by volume, no more than 1.5% of the volume of the beer may consist of alcohol derived from added flavors and other nonbeverage ingredients containing alcohol.

  The above code section limited the amount of alcohol from flavors and nonbeverage ingredients containing alcohol to 49% but that didn’t stop brewers and drinks makers from creating unique products with malt base and taxed at the beer rate, making for a competitively priced product on the beer shelf. In fact, TTB permits the use of mixed cocktail names such as Margarita or Moscow Mule on malt-based products that resemble these cocktails. Many brewers have done a fine job of emulating these mixed drinks flavors under the FMB rubric. Of course, that hasn’t stopped consumers from bringing civil actions against producers arguing that these drinks have been mislabeled and are untruthful but that is a topic for another days.

  I’m sure it’s obvious to the reader that the hard seltzer craze finds its origins in the FMB category, many of which, but not all are malt based. The bottom line here is that this category of malt beverage finds its roots in three factors; consumer demand for variety of taste profiles, the brewer’s ability to create these brews within the confines of government tax revenue regulations and using ingredients that do not jeopardize revenue collection w maintaining the desired shelf price. This writer for one looks forward to watching how consumer demand for unique flavors pushes brewers to come up with creative FMB formulas which surely will lead to greater excitement in the category.