Category: Cider

Turning Market Lemons into Tax Lemonade

Cyndi

How tax-loss harvesting can help business owners lower their tax burden.

a woman serving lemonade from a booth called turning market lemons into tax lemonade

By Sarah Hite, MBA, Northwestern Mutual Wealth Management Company

Running a business means you’re constantly juggling decisions: hiring, cash flow, taxes, growth plans, and the occasional existential crisis over payroll week. Somewhere in that chaos sits your investment portfolio—often quietly doing its thing in the background. But when markets get choppy, those investments can do more than just make you nervous. They can actually help reduce your tax burden overall.

  Enter one of the more underappreciated tools in the tax-planning toolbox: tax-loss harvesting.

  Before you picture someone wandering through an orchard picking sad-looking apples, let’s talk about what this strategy actually means—and how it can benefit business owners both personally and, in some cases, indirectly through their businesses.

What Is Tax-Loss Harvesting?

  Tax-loss harvesting is the practice of selling investments that have declined in value in order to realize a capital loss for tax purposes. That loss can then be used to offset capital gains elsewhere in your portfolio.

  In plain English: if you’ve made money on one investment but lost money on another, the loss can help reduce the taxes owed on the gain.

For example:

•     You sell stock in Company A and realize a $50,000 gain.

•     You sell stock in Company B that has dropped in value and realize a $30,000 loss.

  Your taxable gain becomes $20,000 instead of $50,000.

  That difference can translate into meaningful tax savings, especially for high-earning business owners who may already be in higher tax brackets. This could mean the difference between paying the IRS 12% or 22%, 22% or 24%, 24% or 32%, etc.

  But here’s where it gets interesting: the benefits don’t stop with offsetting gains.

Losses Can Offset More Than Gains

  If your realized capital losses exceed your capital gains for the year, the tax code still gives you a break.

  You can use up to $3,000 per year to offset ordinary income.

  For a business owner reporting substantial income from their company—whether through a salary, K-1 distributions, or pass-through income—that can be useful.

Even better: unused losses carry forward indefinitely.

  Think of it like building a tax shield you can deploy in future years. If you sell your business down the road, those accumulated losses might offset gains from that transaction (if you haven’t read it, check out my article in the Feb/Mar ‘26 edition to learn more about exit planning).

  Not a bad “insurance policy” to have sitting on the shelf!

Why Business Owners Should Pay Attention

  Business owners often have complex tax pictures. Income may flow through multiple channels:

•     Salary or guaranteed payments

•     Profit distributions

•     Capital gains from

       investments

•     Real estate income

•     Other business interests

  Because of that complexity, small tax efficiencies can compound quickly.

  Here are a few situations where tax-loss harvesting can be especially valuable for entrepreneurs.

1.    Offsetting Investment Gains During Good Years:  When business is thriving, owners often invest excess cash into brokerage accounts. Over time, those portfolios may generate gains from stock sales, mutual fund distributions, or portfolio rebalancing. Harvesting losses in underperforming investments can offset those gains and help keep the tax bill under control.

2.   Managing Taxes During Liquidity Events:  If you sell a piece of real estate, a side investment, or even a portion of your business, capital gains taxes can be significant. Strategically harvesting losses beforehand can reduce the taxable impact. This doesn’t eliminate taxes entirely, but it can soften the blow.

3.   Creating Future Tax Flexibility:  Some business owners accumulate losses over time and carry them forward for future years. This can become incredibly valuable when selling a business, selling highly appreciated investments, and diversifying a concentrated stock position. In those moments, previously harvested losses can reduce the tax cost of making big financial moves.

Tax-Loss Harvesting Isn’t Just “Selling the Losers”

  One of the biggest misconceptions about tax-loss harvesting is that it means abandoning your investment strategy. That’s not how professionals approach it.

  Instead, the process often looks more like this:

1.  Identify an investment currently trading below its purchase price

2.  Sell the position to realize the tax loss

3.  Reinvest the proceeds into a similar (but not identical) investment to maintain market exposure

  The goal is to capture the tax benefit without drastically changing your portfolio allocation. In other words, you’re adjusting the plumbing—not demolishing the house. But this is where things can get tricky.

  The Wash Sale Rule: The Buzzkill of Tax Planning

  The IRS anticipated that investors might try to game the system, so it created something called the wash sale rule. The rule states that if you sell an investment at a loss and then buy the same or a “substantially identical” security within 30 days before or after the sale, the loss is disallowed. Yes, the IRS really did create a 61-day window specifically designed to ruin lazy tax strategies.

Here’s a simple example:

  You sell shares of a stock for a loss on December 1. If you buy that same stock back before December 31, the IRS says the loss doesn’t count. Instead, the loss gets added to the cost basis of the new purchase, delaying the tax benefit.

  For investors who don’t track these rules carefully, it’s surprisingly easy to accidentally trigger a wash sale—especially if the investment appears in multiple accounts.

For example:

•     A brokerage account

•     A spouse’s account

•     An automatic dividend reinvestment plan

•     A retirement account

  Yes, even activity in an IRA can trigger wash sale complications, which is why this strategy should never be done casually.

Why Business

Owners Should

Involve Their

Financial Advisor

  Tax-loss harvesting sounds simple on paper but executing it properly requires coordination. A knowledgeable financial advisor can help ensure the strategy is used effectively by:

1.    Monitoring portfolios for harvesting opportunities:  Markets fluctuate constantly. Professional advisors track portfolios throughout the year to identify losses that can be harvested strategically.

2.   Avoiding wash sale traps:  Experienced advisors know how to maintain investment exposure while avoiding “substantially identical” securities.

3.   Coordinating with your broader tax picture:  For business owners, taxes rarely exist in isolation. Advisors often work alongside CPAs to understand expected income for the year, business profitability, planned asset sales, and other capital gains events. This allows harvesting to be done intentionally, rather than reactively.

4.  Integrating the strategy into long-term investment planning:  Tax savings are valuable, but they should never derail the bigger financial picture. A professional advisor keeps the portfolio aligned with your goals while still capturing available tax benefits.

A Word of Caution: Don’t Let the Tax Tail Wag the Investment Dog

  One of the biggest mistakes investors make is selling strong long-term investments purely for tax reasons. Taxes matter—but they shouldn’t drive every investment decision. The goal of tax-loss harvesting isn’t to chase losses or time the market. It’s simply to take advantage of declines that already exist. Think of it as financial recycling. Markets go up. Markets go down. If something temporarily dips below its purchase price, harvesting that loss can turn an otherwise frustrating moment into a small tax win.

  The Bigger Picture for Business Owners:  Entrepreneurs spend an enormous amount of time thinking about how to generate income. But building wealth also depends on how efficiently that income is managed and taxed – it’s not only about sufficient money, but also, efficient money. Strategies like tax-loss harvesting are rarely flashy. They don’t make headlines or dominate cocktail party conversations. But over time, they can quietly save thousands—or even tens of thousands—of dollars in taxes. And for business owners who already juggle complex financial lives, those efficiencies can make a meaningful difference.

Now What?

  Tax-loss harvesting isn’t a loophole or a gimmick. It’s a legitimate strategy built into the tax code that allows investors to offset gains and manage taxable income more efficiently. For business owners, the potential benefits can extend beyond a single year, creating flexibility for future investment decisions or major financial events like exit strategies or expansion.

  However, it’s also a strategy filled with technical details—particularly when it comes to the wash sale rule and maintaining proper portfolio allocation. That’s why the smartest approach isn’t trying to DIY your way through the tax code. Instead, work with an experienced financial advisor who understands how tax-loss harvesting fits into the broader picture of your investments, your business income, and your long-term financial plan. Because when markets inevitably throw a few lemons your way, it’s nice to know someone is there to help turn them into lemonade.

Better Than the Cool Kids

Cyndi

Becoming a noteworthy brand isn’t about fitting in with the cool kids

a man at a bar with a glass of whiskey and behind him are 4 people taking a selfie

By Hanifa Sekandi

Your problem isn’t that your brand isn’t viable. Your problem isn’t that your beverage isn’t good. It is probably great. Your problem is that your goal is to be better than the cool kids, the cool beverages in town, that is. Remember in high school when everyone wanted to be friends with the cool kids? Is the idea of fitting in constantly on your mind? Where are the cool kids now? Who’s talking about them in 2026? As much as we love the cool flashy brands, we do. It is important to understand that becoming a noteworthy brand isn’t about fitting in with the cool kids. Some of your favorite brands were once outliers, something people often forget when a beverage brand becomes mainstream.

  When you try to fit in, you tend to lean into inauthenticity. It’s like wearing a trendy hairstyle that doesn’t fit your face shape or getting a perm because everyone else is doing it. Oh, the eighties! It becomes a struggle to convince yourself every day when you look in the mirror that you feel good. You may fit in more, likely blend in, but you feel out of place. Imagine if a beverage, a bottle of bourbon or whiskey, could speak? We are in the AI animation era, so anything is possible. What would your beverage say to you? Our senses ignite our soul, and sipping your beverage should provide the information you need. How does this beverage want to show up in the world and on liquor shelves? How does it present itself to you? What does it trigger in you? Beyond igniting the desire for revelry.

The Odd Brand Out

  Unbelievably, being the odd brand out is a good thing, the underdog if you will. You have no one to impress but yourself. You can focus on what feels right to you and your marketing team. Draw on raw, authentic vision and emotion. The same energy that drove legacy brands when they began. It’s that grassroots grit mentality, that there is nothing like this on the market. That you are indeed better than the rest. No competition needed, because when you view your brand as a timeless winner, you don’t compete; you simply show up and exist in a league of your own.

  You’re the team that no one sees coming, but when they do, they admire you. They respect your beverage hustle, the product is stellar, and the marketing is bar none. Your goal should be to become an inspiration more than a competitor. Races eventually end. Every track athlete understands this. They do not spend their training season watching other runners run. Instead, they train, reflect, and continue. Understanding that self-reflection is the biggest hurdle to great outcomes. A hard feat to accomplish with social media. A medium that legacy brands did not have to contend with was a full view of what other beverage brands were doing in real time or at rapid-fire speed. They had to learn to stand behind and live with their marketing decisions. An effort that required continuous follow-through and promotion.

a man and woman looking in a book surrounded by oils and spices

Be Bold Without Hesitation

  So where do you start? Be bold. When you were in your youth, you were not limited by the constraints that plague you as an adult. You existed in a world of your own; it was okay to be bold and fun. You had a curiosity about life and the world. This is the energy your team needs to exude to become bold marketers. Marketers who do not strive to be boxed in and placed on a shelf, trying to blend in, hoping a beverage enthusiast will spot them. Your goal is to be chosen. Understanding buyers’ choices and what compels them to purchase a beverage they have never heard of or tried is essential.

  What do you look for in a beverage? Be objective when ideating ways to boost your brand’s image. Also, what makes the cool kids cool? What would you do differently? View yourself as a leader in your industry. Remember, you are not competing; you are co-existing in an industry that needs variety. Your brand is the cherry on top of the whipped cream on an ice cream sundae. Two ingredients that add a burst of flavor. Your beverage adds that missing ingredient to a perfectly crafted cocktail. It’s the showpiece on the bar cart; a can never be without lager on a hot summer’s day.

  It’s about being more than an afterthought. It’s about being the missing beverage, that something your consumer has been looking for. To achieve this, you must be bold in every way. The kind of bold that doesn’t go out of fashion, this isn’t about trends. The kind of bold that belongs in a league of your own, that is the first beverage that comes to mind in your beverage category. Your next question is most likely, ” How do you go about this? Just do it anyway is the answer. That wild idea of a futuristic campaign or one that takes consumers back in time, a beverage time traveller. This is the beverage marketing mindset to live by. Does your brand sparkle with color? Is it sleek and sophisticated? What story are you telling your consumer?

  You must believe in what you are selling more than the person buying it with unequivocal confidence. Are you the punk rock of all beverages? Or giving luxury a run for its money? Be outlandish, but sensible. It isn’t about controversy; it’s about the conversation that your brand evokes and the feeling it enlivens.

You’ve Got to Have Faith

  If you don’t believe in what your brand stands for, no one will. When you encounter opposition from other brands that want to push you out, how will you measure up? How will you manage the criticism from beverage aficionados? All that noise doesn’t matter. Drown it out, and just be, just exist, and have faith in your product. Put love into each bottle distilled, never compromise on quality ingredients, never dull your product to make a profit. Once you are firm about what your beverage brand stands for, all the turbulent times that this unpredictable industry throws at you won’t rock your foundation.

  This is the secret that the best bourbon and ale makers discovered early on. Hence, they have outlasted many hopeful brands that thought it was a competition. Beyond the fun, each beverage is steeped in culture and history. It is this that topshelf brands hold onto firmly. Beverage brands built on struggle, triumph, and faith. Whether it’s the story of a family, a town, or a monastery, these beverages travel many roads, some lasting 200 years. So, are you in? Are you ready to join the legacy, or would you rather sit with the cool kids?

Adaptive Employee Skills Training Unlocks Competitive Advantage

Cyndi
A WOMAN AND A MAN STANDING IN FRONT OF A STILL IN A DISTILLERY

By Jorge Izquierdo, Vice President of Market Development for PMMI

As workforce woes persist, investing in training, technology, and pertinent partner outreach is the best way forward.

  Labor issues continue to be a production stumbling block for craft beer and spirit manufacturers, but solutions, such as artificial intelligence (AI), automated systems, and targeted training, can help increase efficiency and overcome workforce problems, according to “State of the Industry 2025,” a business intelligence report from PMMI, The Association for Packaging and Processing Technologies.

  Attaining and maintaining a qualified workforce continues to be one of the most demanding challenges facing the industry and is characterized by the shortage of skilled tradespeople, technician burnout, and limited internal capacity to meet customer demand.

  Rising labor costs are reshaping brewery strategies, according to a recent study entitled Craft Beer Production in the US Market Research Report (2015-2030) from IBISWorld.

  Breweries are paying more to attract talent and keep pace with inflation, but this puts a real squeeze on already-thin profits and forces innovative staffing and retention tactics, the report states.

  Technological advancements in brewing techniques and supply chain management are resulting in better quality and more creative flavors, helping the market to grow, according to a study called Craft Beer Market (2024 – 2030) from Grand View Research. 

  At the same time, research from the Manufacturing Institute (MI) suggests that there is no one-size-fits-all approach for manufacturers seeking to revamp their manufacturing and training programs. In other words, manufacturers need to tailor their labor upskilling strategies to realize transformative operational benefits fully.

  In fact, MI’s study concluded that manufacturing organizations that emphasize the development of adaptive skills are more likely to unlock a competitive advantage, accelerate their transformation, and directly address the manufacturing skills gap. The research also demonstrated that adaptive skills represent the critical translation point necessary for reskilling the current workforce and for rebranding, attracting, and retaining talent.

  Many savvy manufacturers are considering automation not only to address production issues but also to alleviate the challenges of labor shortages. At PMMI’s 2025 Top to Top meeting, a report entitled 2025 Performance Optimization: Insights for Packaging Line Readiness concluded that three distinct, yet interconnected, phases create an environment of operational readiness. These phases are vertical startups (productivity), operator training (workforce), and IT-OT integration (automation).

  The operator training phase focuses on ensuring that operators have the necessary knowledge and resources to perform their roles effectively. This phase emphasizes the importance of designing training programs around the needs of the workforce and adopting a people-centric approach. Key themes include using technology to improve training, enhancing the skills of trainers, and regular and hands-on training.

  Technology to support training and improve information retention should include videos, interactive manuals, augmented reality, and tablet-based instructions. In addition, beverage manufacturers should request that original equipment manufacturers (OEMs) simplify machinery design and provide user-friendly and intuitive human-machine interfaces to accommodate operators with varying skill levels.

AI Provides Increased Efficiency

  One tool for workforce development is AI. According to PMMI’s 2024 study, The AI Advantage in Equipment: Boosting Performance and Bridging Skills Gaps, AI is not at the level yet where tasks can be completed solely by the technology, so a human is still required to make final decisions. The key impacts that currently available AI solutions can have on the packaging industry are increased staff productivity, better machine performance and OEE, and the mitigation of skills gaps and labor issues.

several employees in a distillery looking at a computer screen titled ai fermentation

  AI technology, particularly AI assistants, has the most potential to improve staff efficiency and productivity. Time-consuming tasks, such as data entry and coding, can now be completed with the help of these assistants. This increases the speed at which projects can be completed, freeing up additional time for staff members to focus on other tasks.

  With a high turnover of staff positions (particularly among maintenance staff and machine operators), optimized training can ensure that employees are receiving the highest-quality training available. AI assistants and generative AI predictive maintenance solutions enable users to ask questions about any issues they encounter, further allowing staff to upskill independently and reduce the risk of human error.

More Solutions Are Available

  PMMI’s OpX Leadership Network explores common industry challenges and develops new work products through special task forces and solutions groups. The entire OpX library of solutions is free for all to use.

  Recently, OpX has focused its efforts on bridging the workforce divide characterized by seasoned operators with decades of institutional knowledge leaving the industry, while a new, tech-savvy workforce comes in with a fresh perspective on learning, relevance, and impact. This generational shift demands not just replacement, but a reinvention of how work is performed.

  To aid in this process, OpX has launched two industry-led solutions: Operator Training Standardization (OTS) and Data Management Standardization (DMS). Built collaboratively by OEMs and consumer packaged goods firms, these work products can help close the gap between experience and execution — accelerating onboarding, strengthening data practices, and elevating performance across entire operations.

  Another tool, PMMI’s Mechatronics Certification program, provides technical credentials to employees through a series of tests based on industry-developed skill standards. The PMMI Mechatronics Certification program:

•     Helps employers assess workers for core skills.

•     Guides schools in developing curricula to prepare students for the manufacturing workforce.

•     Provides a career pathway for students looking for rewarding careers in advanced manufacturing.

The Struggle to Stay Ahead in the Face of Constant Change

  At the same time they’re adapting to new technologies and operational models, beverage producers are facing economic pressures, labor shortages, and regulatory changes, according to Ernst & Young LLP’s Trends in the Beverage Industry: Navigating Change and Innovation report.

  Industry success requires innovation and optimized supply chains, as well as social media- and data-driven marketing strategies, even as market fragmentation complicates the landscape.

  While many craft beverage manufacturers tend to focus on practical applications that can help solve real problems on the plant floor, one clear way to improve efficiency is by increasing corporate investment in workforce development programs.

The Big Beautiful Bill on Your Beverage Business

Cyndi

There is plenty of debate from stakeholders across finance, labor, and industry groups.

a group of men and woman sitting around a table on a brewery production floor discussing the new tax bill

By Raj Tulshan, Founder & Managing Partner, Loan Mantra

Welcome to the bright start of a new year! 2026 brings new laws and legislation that will impact the beverage business industry. At the forefront of industry news is the One Big Beautiful Bill Act, often called the Big Beautiful Bill. So how does the Big Beautiful Bill affect beverage businesses like breweries, distilleries, bars, restaurants, distributors? Let’s take a look.

  As with any major legislative proposal, there is plenty of debate from stakeholders across finance, labor, and industry groups. Now that the statute is moving from draft language to enactment, beverage businesses can start planning around what’s actually in effect.

Tax Relief Extension

  The Big Beautiful Bill enables beverage business owners to better predict revenue and outcomes because it extends corporate and individual tax rates from the 2017 Tax Cuts and Jobs Act. The Act, which was scheduled to expire at the end of 2025, helps owners avoid large tax increases. For beverage business owners, especially small producers, distributors, and related service providers, it provides a level of certainty and security for strategic plans. For business owners operating as pass-through entities such as LLCs, S-corps and partnerships, the Qualified Business Income (QBI) deduction, which is usually up to 20% of profits, is extended. This should help owners of pass-through beverage businesses lower their taxable income if they qualify.

Larger, Immediate Expense Limits

  The Big Beautiful Bill increases expensing limits to $2.5M for qualified property and allows for immediate expensing (100% bonus depreciation) so businesses can deduct even bigger asset purchases immediately, rather than depreciating them over many years. This can be a great incentive to invest in production equipment, brewing systems, delivery vehicles, taproom upgrades, or refrigeration and storage that is needed now and reduce taxes sooner rather than later. But some production-related tax perks (like Qualified Production Property) have specific eligibility rules. This means if your beverage business’s facility doesn’t qualify under the IRS’s definitions, you won’t receive bonus depreciation for portions of the property used for sales or tasting rooms. Check with your financial or tax advisor to confirm eligibility.

To make these deductions easier to support, keep clean documentation: a formal written statement from vendors, an itemized list of assets purchased, and invoices showing the purchase price. This will can substantiate the deduction and any later claim.

Expanded Deductions

Interest on Loans:  The Big Beautiful Bill reinstates a more generous calculation to deduct business interest on commercial loans. Beverage businesses can again add back depreciation, amortization and depletion when calculating adjusted taxable income. This change allows capital-intensive businesses, which carry heavy debt loads and have high depreciation expenses (such as those operating large vehicle fleets), to potentially deduct more of their interest expenses and reduce their overall tax liability. It also allows for expanding beverage business owners to take greater deductions paid on commercial loan interest to help finance future goals like buying a new facility or refrigerated box trucks. Check with a loan advisor to ensure all qualifications are met.

  From an operational standpoint, many beverage businesses will want tighter visibility into payables, receivables, and loan accounts—especially when interest expense is a key lever in financial workflows.

Research and Development:  As beverage business owners push for innovation by developing new drinks and products, domestic research and development expenses can once again be fully deducted in the year they are incurred. This is significant even for small businesses that are innovating with products, processes, or software. Beverage Research & Development (R&D) is crucial for driving innovation through the creation of new beverages, enhancing existing formulas, and catering to the evolving consumer demands for health, taste, and sustainability. This has financial impacts on concept development, ingredient sourcing, prototyping, sensory testing, regulatory compliance, or even scaling up manufacturing to remain competitive. Key areas of focus include functional ingredients, plant-based options, low-sugar alternatives, and sustainable packaging, which require market research, flavor science, and process optimization.

  If you’re capturing R&D time, lab supplies, or pilot-batch inputs, using financial automation software (or an expense management app tied to your accounting system) can help track costs in real time and keep supporting documentation consistent across your finance team.

No Tax on Tips

  One of the biggest changes created in the Big Beautiful Bill is the new “No Tax on Tips” requirement. This temporary provision was put in place to be effective for tax years 2025 through 2028. It allows qualified tips to be income-tax-free of up to $25,000 for federal taxes only. All wages, including tips must still be reported and recorded by both employer and employee. What is important to note is that Social Security and Medicare taxes still apply on tips — the deduction affects only income tax. In addition, some states may not conform to this deduction, so tips could still be taxed at the state level. Employers must report tip income on W-2s or similar forms for employees to claim the deduction.

  It’s also important to know who qualifies for this tax benefit. The rule applies to workers in occupations that “customarily and regularly receive tips”, as recognized by the Internal Revenue Service. Good examples from the beverage industry include staff such as: Bartenders, servers/waitstaff, cocktail servers, barbacks, tipped food runners, sommeliers/wine stewards, or counter service staff who receive tips. If your business handles or hold events this could also include Food/Beverage delivery drivers, catering service staff, event bartenders, valet attendants and beverage service staff. There are gray areas of this line item. If tipping is customary, regular, and documented then brewery taproom staff, tasting room hosts, coffee baristas, food truck operators (employees, not owners) and tour guides (brewery/distillery tours) may also benefit. Those who are NOT eligible are: Owners and partners, salaried managers (even if they receive tip-outs) and back-of-house staff unless tips are truly customary.

  To protect the business and employees, an owner should keep records separating true tips from service charges and other charges and ensure tip reporting ties back to POS/payroll. Clear facts and documentation matter, especially if an owner or employee must ever support a claim under state law or payroll records.

  The Big Beautiful Bill brings significant changes to the beverage industry, offering what is intended to be financial incentives for business owners. With extensions on tax relief, increased expensing limits, and expanded deductions, beverage businesses are better positioned to invest in growth and innovation. The act’s provision for tax-free tips provides additional support for frontline workers, offering a temporary financial boost.

  As the beverage industry continues to evolve, the Big Beautiful Bill ensures that businesses have the tools and flexibility to adapt to changing market demands. Whether you’re a small brewery experimenting with new flavors or a large distributor expanding your fleet, these legislative changes offer numerous opportunities to enhance operations and drive success.

  Business owners should remain informed and consult with financial advisors to fully leverage these benefits while navigating any specific eligibility requirements. The Big Beautiful Bill marks a positive step forward, reinforcing the industry’s foundation and encouraging a vibrant, innovative future.

The Tipping Point

  Who qualifies for the new “no tax on tips” benefit? *

YES, RULE APPLIES:

If tips are customary, customer-provided and reported, these workers generally qualify.

•     Bartenders

•     Servers / waitstaff

•     Cocktail servers

•     Barbacks

•     Tipped food runners

•     Sommeliers / wine stewards

•     Counter service staff who receive tips

      •Food delivery drivers

•     Catering service staff

•     Event bartenders

•     Valet attendants

MAYBE RULE APPLIES:

Certain positions may qualify if tipping is regular and documented. If customers routinely tip and tips are tracked through payroll/POS, the role likely qualifies.

•     Brewery taproom staff

•     Tasting room hosts

•     Coffee baristas

•     Food truck operators (employees, not owners)

•     Tour guides (brewery/distillery tours)

NO RULE APPLIES:

•     Owners and partners

•     Salaried managers (even if they receive tip-outs)

•     Back-of-house staff unless tips are truly customary

•     Any role where “tips” are really bonuses or service charges

Important:  Mandatory service charges are NOT tips under IRS rules and do not qualify.

*This is just a general guideline. Visit the irs.gov page for complete guidance and clarification on this topic.

  Raj Tulshan is founder and managing partner of Loan Mantra, connect at Raj@loanmantra.com or on Linked-in at https://www.linkedin.com/in/tulshan/.

Bar vs. Restaurant: The Difference is in the Details

Cyndi

What owners need to know when opening a liquor-focused concept

photo of Still Barrel bourbon bar in phoenix az

By Eric Butrull, Knife and Fork Media Group

Across the country, the hospitality industry continues to be a major economic powerhouse. As 2025 came to a close, the National Restaurant Association reported that restaurants alone added 150,000 jobs in 2025, and eating and drinking places added a net 27,200 in December (on a seasonally-adjusted basis, per the Bureau of Labor Statistics).

  Most hospitality personnel — from owners to staff — know that operating a business in this industry is not for the faint of heart. Whether a bar, brewery or distillery, the hours can be long, fast-paced, stressful and exhausting. However, owning and operating a bar or restaurant can also be extremely fulfilling and rewarding.

  Repeat customers of these types of establishments are often extremely loyal, finding solace and a “home away from home” at their favorite neighborhood bar or brewery. But there are some rather distinct differences in owning and operating a food service establishment and a bar, brewery or distillery, where liquor is the focus of sales.

  Dennis Shaw, owner of Phoenix City Grille, a successful restaurant in Phoenix, Arizona, since 1997, and co-founder of the soon-to-be-opened Still & Barrel bourbon bar in Phoenix, Arizona, offers some insight, based on his more than four decades in the hospitality industry, working across restaurant and bar operations, in leadership and ownership positions.

  “A liquor-focused bar is much more about curation, education and experience than volume. With a restaurant, food drives the visit; with a bourbon bar, the spirit selection and the story behind it are the draw,” said Shaw. “Inventory management is more complex, pricing strategy is critical and staff knowledge has to go much deeper. Every bottle has a purpose, and every pour should feel intentional.” Intention is key in any business, of course. However, Shaw notes that when it comes to bar businesses in particular, patience and relationships matter more than anything.

  “Whether it’s securing rare bottles, navigating licensing or building the right team, nothing happens overnight,” he said. “I’ve also learned that guests today want authenticity — they want to know why a bottle is on the shelf and what makes it special.”

  Still & Barrel’s General Manager Cliff Cragg, who has been in the hospitality industry for more than 20 years, echoed those sentiments.

  When it comes to his takeaway while building Still & Barrel, he said: “I have learned that patience and relationships matter more than speed. Building a strong spirits program takes time, trust and consistency. There are no shortcuts.”

  Prior to helping open Still & Barrel, Cragg previously operated a concept where he built the whiskey program from the ground up, which was recognized as one of the top whiskey programs in the United States by the time he left. Over the last few years, he has focused on building and managing spirits-forward beverage programs, barrel selections, and restaurant and bar operations.

  One crucial factor to keep in mind is that today’s customers are knowledgeable and yet thirsty for more. Rather than simply ordering a fine spirit or rare wine, customers want to feel connected — to the establishment, to their experience and to the spirit itself. Providing them with knowledge or history about what the bottle holds can provide value for guests beyond what’s in the glass.

bottle of straight bourbon whiskey from Gallery

  When opening a bar in today’s market, Cragg emphasized the importance of having a clear vision from the start — and remaining disciplined.

  “Understand your costs and invest in your staff,” he said. “A great bottle does not mean much if the service and execution are not there.”

  Knapp followed that advice up with his own: “Educate yourself relentlessly, invest in your staff’s knowledge and understand your market before you buy a single bottle. And be prepared: capital requirements, licensing timelines and inventory costs are often underestimated.”

It is of the utmost importance to ensure proper liquor licensing and air-tight insurance policies. Most knowledgeable, highly credible insurance brokers will advise bar and restaurant owners to work closely with an agent that is well-versed specifically in the language, the inclusions and more importantly, the exclusions that are often written into policies for establishments that serve alcohol.

  One of the key differences that surprised Knapp during the process of opening Still & Barrel is how complex and restrictive liquor licensing and insurance can be, especially when dealing with high-value inventory.

  “People are also surprised by how much capital is tied up on the shelves,” he said. “Some bottles sit for months or years, but they’re essential to the identity of the bar.”

  Knapp encourages new bar owners not to chase trends but rather build a point of view. Upon developing the concept and the inventory for Still & Barrel, for example, Knapp said he largely relied on Cragg’s extensive knowledge of whiskey to build the brand’s inventory around balance — allocated and rare bourbons alongside exceptional everyday pours.

  “We focused on producers with strong heritage, craftsmanship and consistency,” he said. “Some of the bottles we’re most proud of are those that are nearly impossible to find on-premise, paired with staff who can explain why they’re special, not just expensive.”

  This explanation of importance or rarity, rather than price, further adds value to the product being sold and gives more meaning to the drinker.

  For Cragg, that meant building the bar list at Still & Barrel with balance in mind, including approachable pours, premium options and a small number of truly special bottles.

  “The ones I am most proud of are our private barrel selections because we tasted and chose them ourselves,” he said, adding, “They reflect what we actually like to drink.”

  Offering rare and hard-to-find bottles gives a bar an edge. Offering something that not everyone has on their bar list makes it feel exclusive, even if the environment is as casual and welcoming as any other neighborhood bar on the block. Creating the proper connections in order to obtain those special pours is a key part of the business.

  “Sourcing rare bottles is mostly relationship-driven. Allocations are earned through long-term support and trust with distributors and suppliers,” said Cragg. “Private barrels take time, travel and a lot of tasting before the right one is selected.”

  Knapp agreed that long-term distributor relationships, purchase history and trust are essential.

  “Allocations aren’t something you can buy your way into overnight — you earn them over time,” he said. “We stay engaged with distilleries, tastings and industry events, which helps us identify unique opportunities before they hit the broader market.”

  This goes back to the idea of intention.

  “In a liquor-focused concept, the bar is the point, not the support,” Cragg said. “The selection is tighter and more intentional. With fewer options, consistency and attention to detail matter even more than they do in a traditional restaurant.”

  Ultimately, there are nuances with each individual establishment. However, overall success comes with putting hospitality first.

  “Great bars and restaurants aren’t built on menus or bottles alone,” said Knapp. They’re built on people, consistency and attention to detail. If you get those things right, everything else follows.”

  Cragg added, “I have learned that consistency and honesty go a long way. Trends change, but good hospitality, a well-run bar and a team that cares will always matter.”

  Dennis Shaw took ownership of Phoenix City Grille (PCG), continuing the legacy that founder Sheldon Knapp built when he opened the restaurant in 1997, while elevating the guest experience through food, service and beverage programs. Shaw co-owns Still & Barrel with Knapp. He calls the opening a natural extension of that journey—taking everything they have learned at PCG and applying it to a more focused, spirit-driven concept.

  Cliff Cragg is the general manager of Still & Barrel. He has more than 20 years of hospitality experience, previously operating a concept where he built the whiskey program from the ground up, which was recognized as one of the top whiskey programs in the United States by the time he left.

What’s Your Brews Resolution

Cyndi

Another year, another resolution.

two beer mugs clinking together in front of a clock about to turn midnight on New Years Eve

By Hanifa Sekandi

What are your brand’s goals this year? What do you want to achieve? Did you meet your goals last year? When most people think about a New Year’s resolution, they think about personal goals and solutions to improve their lives. Your brand is always looking for fresh solutions. It may be a complete revolution—an overhaul of what once was for something new and inspiring.

  The beauty of this time of year is that it forces everyone to dig a little deeper and think critically about what kind of impact they would like to have. Seeing your brand as a movement, a cultural wave that people desire to be a part of, will allow you to see your consumers authentically. Understanding how your beverage fits in their lifestyle, their personal brand ethos, particularly for those who imbibe mindfully.

  As you draft this year’s creative brief and refine your band guidelines, change your approach. As a team, come together and create a resolution board. A visual tool that will allow you to dream up ways to be an industry disruptor in the best way possible. Think big and be bold. Include places around the world that inspire you, food, culture, fashion, and every facet of life that will help your beverage become more than just another drink, but a lifestyle brand.

  This allows you to see your brand in motion. Perched on a table at a cafe by the beach or poured while dining on a gourmet meal at a high-end restaurant in Paris. While you create this vision, do not think about trends. You are the trend; you are the movement. When you visualize your brand this way, you will not get lost in the race because you will focus on who is running next to you. Also, remember, having a community of other beverage brands is important. Do not compete, disrupt.

The Shift is Possible

  It is easy to believe that, as a brand, you are stuck. The notion that you need to move full steam ahead with the way things are and have always been. Why would you purposely implement a brand shake-up? What about all the time, money, and effort spent on past initiatives? Should you abandon them? Remember, you are always stacking your brand wheel. Even during a brand revolution, you keep elements that have worked for your brand. It is not a complete elimination of everything.

  A good example is when you decide to embark on a wellness journey. Yes, you are shedding parts of yourself, but the good parts remain intact. It also allows the best parts of you to shine. We often hide the best parts of ourselves beneath the things we do not like. Brands do this when they refuse to change. They refuse to make bold moves that, eventually, will prove to be beneficial. Do not change identifying markers that make you unique. Instead, think of ways to take the good and make it impactful.

  So how do you get started? How do you make the shift? Look at your product performance. Review campaigns that had a great ROI. Then analyze areas where you missed the mark. Your answers are always found in the steps you have already made. You do not need to hire an agency or consultant to tell you this. A vision board will help you visualize this. This is a visual anchor to remind you of where you want to be or plan to go in the next 5 to 10 years. If you decide to hire someone to help you bolster this vision, you will avoid those who don’t see it and try to convince you to go in another direction.

  Not all experts are gold stars. Even great advice can be bad advice. So many people had great ideas but then were steered away from them because they trusted someone else’s vision. Your vision was planted in your heart for a reason. So, remain clear and steadfast. Stay the course, like the best of the best who were beverage innovators of their time.

You’re Not Stuck

a chalkboard showing the steps from vision to mission to strategy to action plan

  Once you have decided to make the shift and start devising a plan to make your beverage stand out, do not limit your possibilities. You are never stuck; you are just afraid. People often confuse fear with being stuck. With limited budgets or teams, it can appear this way. Fortunately, we live in a world where communication is at your fingertips. Your entry into the market is made easier, and barriers can be overcome.

  Did you know that the founders of Airbnb first started their business by renting air mattresses to pay their rent? Or that John Schnatter, the founder of Papa John’s, started with rented equipment in a broom closet, his goal was to make enough money to date? You could be the next Ben Weiss, who launched his beverage brand Bai in his basement. His brand was acquired for $ 1.7 billion. When there’s money, there’s a way, of course, but when there is a WILL, there is a way.

  The problem most people face is that they are not running their own race. Competition will always exist. Consumers will always have choices. Spending your time worrying about this will set you back. Look ahead and be thankful that the market exists. Imagine a world where only one beverage existed. Only one flavor by one brand. Life would be quite boring. Like nature, a forest full of trees is a forest full of trees, each with a unique story and distinct markings. Your beverage is a tree in that forest, and the people going on a hike through it will see you. They want to know what your story is and how you contribute to the beverage ecosystem.

Start the Beverage Revolution

the people's brew and beer revolusion poster

  It is exciting to think that there is a founder somewhere crafting a new beverage idea from their kitchen. It is exciting to know that there are beverage brands that are bold enough to try something new, to be the rebels of the beverage industry. What do you have to lose? There is so much to gain if you approach this with a fearless mindset. There are so many reasons why you should not start. If you ever ask someone in the beverage industry, they will often tell you all the reasons why it is a bad idea.

  Isn’t it funny that someone who is doing something you desire deters you? You can see this as an opportunity to propel yourself forward into the unknown and write your own beverage brand story or give up. Look back and realize the what ifs you had control of.

What if you tried? What if you did things a little differently? What if their story is not your own?

  No one will know unless you try. What is in a world-class beverage brand is the person who believed in their product. That never doubted that theirs is nothing like the others, just one sip, taste buds enlivened, and an industry transformed by you and your beverage.

Minding Your Beverage Business Mantra

Cyndi

The power of manifestation through positive affirmation

human head with a symbol of bright light and intersecting curves and shapes

By Raj Tulshan, Founder & Managing Partner, Loan Mantra

New year, new you! A new year brings the opportunity for a business refresh and positive change. Many Americans turn the calendar and plan New Year’s resolutions as rite of passage each year.  But planning and keeping these resolutions is often easier said than done. However, a Quickbooks survey indicates that business owners may carry higher levels of ambition than those with no entrepreneurial interest. Business owners are more likely to make (and stick to) financial goals than the average consumer—65% say they tend to keep their financial resolutions.1 

  Interestingly, new data also shows that what’s on the mind of business owners in 2026 is different than in year’s past. New Year’s Resolutions made for 2026 reveal notable shifts in how business owners view the current business climate and what priorities matter when compared to resolutions that were made in previous years.

  Prior to 2026, we see resolutions centered on increasing sales, improving marketing efforts, cutting costs and boosting efficiency. In contrast, 2026 New Year’s Resolutions are more future focused with long-term thinking in mind. Goals for 2026 focus on building financial resilience, accelerating adoption of smart tools and technology, strengthening digital presence, sustainability and investing in workplace culture and people says findings from a Bank of America Study. The research further reveals that 74% of small and midsize business owners anticipate revenue growth in 2026 with over half, (60%) planning to expand their operations.2 

  So, what is the key takeaway? A renewed focus on the positive in the business landscape.

A Positive Focus

  Focusing on the positive, re-enforcing and repeating positive statements, or affirmations can have a powerful effect. Studies indicate that affirmative self-talk can re-wire critical neurotransmitters that fuse connections together in the brain. Writing down these affirmations further engages the reward and self-processing areas of the mind, enhancing concentration, improving performance under stress. Positive affirmations don’t just feel good—there’s research to back up their many benefits. Whether it’s improving mental well-being, shaping attention toward success-oriented actions, or aligning with a deeper purpose, the benefits are real and the impact is measurable.

A Mindful Purpose

  Developing a mantra is one way to use positively focused affirmations with intention. The word mantra originated in India and was derived from combining the Sanskrit, root word man- “to think” and -tra meaning, “tool”, together to mean “instrument of thought” or tool for the mind. Hinduism, Buddhism and Jainism use mantras as part of sacred ancient practices to harness spiritual power and alter consciousness. Sikhism, Zoroastrianism, Islam and Christianity also use a similar idea of repeating words, either a prayer or phrase to bring enlightenment or as way to worship.

  In the secular space, mantras serve a variety of functions and are especially popular as aids to help mindfulness, deepen concentration and increase awareness. In business, a mantra is a future-focused statement that defines your business as you want it to be. Clarity of your business purpose is not only important to business owners, employees, and shareholders, but clients and potential customers too. Research by McKinsey shows that 82% of respondents say purpose statements are important in business, and 72% believe purpose should outweigh profit.3

  Mantras help shape what we notice and focus on collectively in a positive direction. Psychologists call this confirmation bias. This means your brain starts noticing and signaling opportunities that align with your desired outcome. Practicing and repeating mantras helps replace negative thoughts with positive ones, encouraging optimism, resilience, and growth. In a study done with U.S. Veterans, mantra repetition was associated with greater reductions in post-traumatic stress disorder (PTSD) symptoms and anger and helped improve mental health.

Team Alignment for Successful Outcomes

  Mantras are part of our company culture and belief systems – so much so, that we use this practice daily. We are convinced of the power of positive suggestion and manifestation, which have made a big impact on our growth. When creating our mantra, we wanted to convey how our human expertise, secure technology, and painless platform allow borrowers, lenders, and partners to fund loans easily and efficiently anytime and anywhere. With this in mind, we created the mantra: Democratized lending for all.

  Business owners and leaders are discovering the performance secrets that elite athletes already know.5 Intentional thoughts or minding your mantra, repetition, and focusing on the desired outcome can help manifest your dreams in personal and professional life, leading you on the road to victory and long-term value.

How to Create Your Own business Mantra

  Ready to develop a business mantra that reflects your company? The first step is to write a few short powerful phrases that capture the essence of your business. Ask yourself (and maybe grab partners, customers or associates to help) — why does your business exist, who do you serve, what sets you apart and what feeling you deliver. Think beyond the obvious answers. To create a compelling business mantra, follow these steps:

1.  Craft Short, Powerful Phrases:  Begin by capturing the essence of your business in just 2-5 words. Reflect on your core purpose, the audience you serve, and the impact you wish to make. Keep in mind that a mantra is more than a tagline—it’s an expression of your business’s truth.

2.  Clarify Your Why: Articulate the true impact of your business in 1-2 concise sentences. For instance, you might say, “We help small businesses feel confident managing their finances.” This step requires you to dig deep into the real reason your business exists and the difference it makes.

3.  Define Your Audience and Impact: Specify who your audience is and what you offer them. Consider the transformation or change your brand brings to your customers. An example statement could be, “We turn confusion into clarity.” This ensures that your mantra is aligned with the needs and experiences of your audience.

4. Describe Your Actions:

     Use strong, active language to describe what your business does. Choose words that are bold and human. Examples of action-oriented phrases include Inspire Confidence, Simplify Growth, or Empower Every Client. These should reflect the dynamic actions your business takes to achieve its goals.

5.  Choose the True Mantra: Gather feedback from your team or customers to ensure your chosen mantra resonates well with them and aligns with your brand values. This collaborative step helps in fine-tuning your mantra to reflect the collective vision of your business.

6. Test, Trial and Use Your Mantra: Say your mantra aloud to confirm it energizes and motivates you. Integrate it into your internal materials and use it as a guide in decision-making processes. Consistently reinforce it within your company culture and marketing efforts to ensure it becomes an integral part of your business identity.

  For more information contact Raj Tulshan the author, visit loanmantra.com or https://www.linkedin.com/in/tulshan/.

Sources:

1.    QuickBooks. “Entrepreneurship in 2025: The Trends and Insights You Need to Know | QuickBooks.” Intuit.com, 17 Dec. 2024, quickbooks.intuit.com/r/small-business-data/entrepreneurship-in-2025/#resolutions. Accessed 20 Nov. 2025.

2.   “BofA Report: 74% of Small and Mid-Sized Business Owners Expect Revenue to Increase in the next Year.” Bank of America, 2025, newsroom.bankofamerica.com/content/newsroom/press-releases/2025/11/bofa-report–74–of-small-and-mid-sized-business-owners-expect-r.html. Accessed 20 Nov. 2025.

3.   Mckinsey. “Corporate Purpose: Shifting from Why to How | McKinsey.” Www.mckinsey.com, 22 Apr. 2020, www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/purpose-shifting-from-why-to-how.

4.   Malaktaris A, McLean CL, Mallavarapu S, Herbert MS, Kelsven S, Bormann JE, Lang AJ. Higher frequency of mantram repetition practice is associated with enhanced clinical benefits among United States Veterans with post-traumatic stress disorder. Eur J Psychotraumatol. 2022 Jun 10;13(1):2078564. doi: 10.1080/20008198.2022.2078564. PMID: 35713599; PMCID: PMC9196752.

5.         Hatzigeorgiadis, A., Zourbanos, N., Galanis, E., & Theodorakis, Y. (2011). Self-Talk and Sports Performance: A Meta-Analysis. Perspectives on Psychological Science, 6(4), 348-356. https://doi.org/10.1177/1745691611413136 (Original work published 2011)

Stop Playing Safe!

Cyndi

What a frozen herb brand can teach beverage makers about standing out

stop playing it stafe start standing out

By Jake Ahles, Morel Creative

Too often, beverage brands play it safe. Scroll through social feeds or flip through trade publications and you will see the same creative patterns on repeat: a glistening bottle, a slow pour, a moody cocktail in soft window light. It’s beautiful, but predictable.

  And predictability rarely builds momentum.

  That’s why one of the most inspiring campaigns I have seen recently didn’t come from a distillery or brewery — it came from a frozen herb brand.

The Safe Trap

  In the craft beverage world, “good creative” often means “safe creative.” Founders and marketers play by invisible rules meant to fit the category:

•     Use lifestyle photography, not humor.

•     Talk about the process, not the people.

•     Highlight the ingredients, not the impact.

  But safe creative doesn’t drive sales. It preserves comfort.

  When everyone’s following the same playbook, the brands that win are the ones bold enough to break patterns – not by being loud, but by being real.

That’s what Dorot Gardens did. And it is exactly what beverage makers can learn from.

The Dorot Story: From Freezer Aisle to Brand Momentum

  Dorot Gardens makes pre-portioned frozen herbs and vegetables. A category that’s functional, not sexy. A product people love when they try it but often forget exists.

  When our team collaborated on their new campaign, the goal wasn’t to invent a new story — it was to reignite an old one with clarity and energy.

  The concept was simple: “Make a Note to Grab Dorot.”

  Instead of over-romanticizing fresh herbs or focusing on ingredients, we leaned into honesty and self-awareness. The campaign admitted exactly what it was — a reminder. A wink to the shopper who forgets until they’re already in the store.

  The tone was fresh, fun, and confident. The visuals were bright and intentional. Every shot, every tagline, every frame was designed to make you smile and remember.

  The result wasn’t just a clever ad — it became an organizing idea that unified the brand’s story across packaging, digital, retail, and trade.

Why It Worked (and Why Beverage Brands Should Take Note))

  Dorot’s success came down to three core principles that apply just as much to spirits, beer, and RTDs as they do to frozen garlic cubes.

1.    Energy is Contagious:

      When a brand expresses joy and confidence, it changes how people engage with it.

      Too many beverage campaigns feel restrained — technically beautiful, but emotionally flat. Dorot took the opposite route: every frame buzzed with energy.

      That vibrancy doesn’t just appeal to consumers; it gives your sales team and distributor reps something to rally around. It makes people proud to represent the brand.

      Because internal energy translates to external momentum.

2.   Clarity Wins Over Cleverness:

      Dorot’s story was clear enough for anyone — a retail buyer, a merchandiser, a busy parent — to get instantly.

      No over-explaining. No long ingredient lists. Just: Here’s what we do. Here’s why it matters.

      In the beverage world, clarity can be the difference between staying regional and scaling nationally. If your buyer deck or sales call requires explanation after explanation, the story’s not clear enough yet.

      A great brand story can be told in one breath — by anyone, anywhere.

3.   Consistency Builds Belief:

      Every element of Dorot’s campaign worked together: social clips, POS, packaging, and internal sales tools all spoke the same visual and verbal language.

      That consistency built trust – not just with consumers, but with retailers and investors too.

  In the craft beverage world, fragmentation kills belief. When your Instagram looks one way, your sell sheet another, and your distributors are saying something completely different, buyers lose confidence.

  The strongest brands build creative systems, not just campaigns.

Lessons for Craft Beverage Makers

  So, what can beverage brands actually do with this?

Here’s how to translate Dorot’s principles into your own storytelling system:

1.   Audit Your Content for

     Clarity:  Gather your sales materials, brand deck, web copy, and social posts. If someone new to your brand can’t tell what you do, who it’s for, and why it matters within 10 seconds — simplify.

2.   Build a Repeatable Story System:  Create assets that work across sales, trade, and consumer touchpoints. Your content should help distributors pitch you as confidently as your founders do.

3.   Embrace Personality: Humor, wit, and authenticity don’t make you less premium. They make you more human. Dorot leaned into personality — and that made their utility product memorable.

4.  Stop Hiding Behind “Craft”:  Craft isn’t a differentiator anymore. Clarity is. The more your brand story focuses on how you help the buyer or bartender win, the more doors you will open.

What Happens When You Stop Playing It Safe

  After Dorot’s campaign launched, something interesting happened. The creative didn’t just perform well externally — it energized the brand internally.

  Sales teams started using the new content in presentations and follow-ups. Retail partners requested assets for digital displays. Even long-time employees said they finally felt the brand had a clear, confident voice.

  That’s the ripple effect of aligned storytelling: it creates pride, momentum, and market presence.

  And that’s exactly what every craft beverage brand needs right now — in a category that’s more competitive than ever.

From Frozen Herbs to Craft Spirits: The Shared Truth

  At the end of the day, what Dorot proved is the same truth that drives every successful brand:

  Clarity and consistency are not creative constraints. They’re competitive advantages.

  Whether you’re selling gin, hard kombucha, or frozen herbs, the brands that grow are the ones that know who they are, what they stand for, and how to say it — repeatedly.

  Because when you stop playing it safe and start showing up with clarity and confidence, you stop asking for space. You start earning it!

  Jake Ahles is the founder of Morel Creative, a visual strategy studio helping purpose-driven beverage brands build storytelling systems that scale. Feel free to contact Jake: jake@wearemorel.com

Cleaning & Sanitation Essentials

Cyndi

Protecting quality, compliance and consumer trust

person in hazard suit and rubber boots spraying down a distillery production facility floor

By Alyssa L. Ochs

In today’s modern breweries and distilleries, cleaning and sanitation aren’t just afterthoughts or background busy work. These essential tasks are core functions that directly shape the quality of your products while ensuring regulatory compliance and upholding your brand’s reputation.

  Regardless of whether you produce just a handful of beers or spirits per year or run an expansive multi-state operation, your approach to cleaning impacts much more than the aesthetics of your facility. Proper cleaning and sanitation in the craft beverage industry affects a product’s flavor, yield, and stability, as well as employee safety, inspection results, and distributor relationships.

  Here’s a deep dive into why cleaning and sanitation matter so much for craft beverage producers and how you can train and equip your staff to establish a business culture with consistently high standards. 

Why Cleaning and Sanitation Are Essential

  Even the most minute contamination can dramatically affect the quality and taste of a beer or spirit. For example, bacteria like Lactobacillus and Pediococcus, as well as yeasts like Brettanomyces, can cause undesirable haziness, sourness, or inconsistent carbonation in beer.

  Meanwhile, residues from oils, fusel compounds and grain mashes can ruin spirits, causing harsh off-notes and lower yields. Biofilms, slimy bacterial communities that adhere to surfaces, are especially problematic and can resist standard cleaning methods if not promptly addressed.

  Sanitizing brewery and distillery equipment is essential to prevent these types of harmful microorganisms from entering finished products. And no, the alcohol content in these products isn’t sufficient to avoid contamination during the initial stages of production.

  When you always keep your equipment clean, you improve its operational efficiency, reduce downtime, and extend its lifespan. Kegs fill easily, heat exchangers maintain optimal thermal transfer and sensors remain accurate, leading to cost savings over time.

  Even just a single, publicly known contamination incident can destroy years of building your business’ reputation. Your customers demand a safe and delicious product, while distributors and retailers expect consistency and professionalism. So essentially, keeping everything clean in-house is a final guarantee behind your label.

Regulatory Standards and Compliance

  Beverage producers must comply with multiple regulatory requirements to continue operating legally, including the FDA’s Current Good Manufacturing Practices (cGMPs). According to 21 CFR Part 117, beverage producers must maintain clean, sanitary equipment and implement pest control programs. All food-contact surfaces must be regularly inspected, and the cleaning water must be potable. Breweries and distilleries must also maintain cleaning records for official review.

  The Alcohol and Tobacco Tax and Trade Bureau (TTB) primarily focuses on production records and tax compliance. However, it also requires beverage production facilities to maintain conditions that prevent contamination. Proof of unsanitary conditions may result in TTB warning letters, suspended operations or delayed approvals for new labels or expansions.

  Your brewery or distillery may also be subject to local and state health regulations, such as wastewater discharge limits and floor drain sanitation standards. Local and state requirements may require you to follow approved chemical lists for cleaning products, maintain water hardness/softness standards and ensure employee hygiene requirements are met.

  Additionally, there are Occupational Safety and Health Administration (OSHA) standards to be aware of while running a craft beverage business. OSHA governs cleaning-related tasks such as chemical handling, personal protective equipment (PPE), eyewash and shower stations, spill control, and confined space entry.

Ensuring Safety with Chemical Hazards  

  Safety is paramount when cleaning and sanitizing a brewery or distillery, as the chemicals used may be aggressive and toxic. For example, caustic soda (sodium hydroxide) can burn the skin and react with aluminum. When not mixed according to the directions, acid cleaners can release harmful vapors into the air.

  If your operation uses peracetic acid, you should know that this strong oxidizer can irritate a worker’s eyes and lungs. Chlorine sanitizers require careful rinsing and ventilation for safe use.

  Anyone who manages these types of chemicals should wear chemical-resistant gloves, goggles or face shields, aprons, and boots. Respirators are even recommended for some handling of cleaning chemicals.

  It’s also essential to store cleaning chemicals properly, such as separating acids and bases and using secondary containment when recommended. All cleaning products should be clearly labeled in their containers and stored in areas with proper ventilation in your facility.

Frequency & Scheduling of Cleaning Tasks

  Although individual owners of craft beverage operations may have their own visions for cleaning and sanitation based on their experiences, there are industry standards to use as starting points.

  For instance, staff members should clean fermenters after every batch using a clean-in-place cycle and sanitize them before subsequent use. For mash and lauter tuns, clean these after every brew, manually scrubbing away grain residues when needed.

  Ensure stills and columns are cleaned after runs and be mindful that copper and stainless-steel containers require different care. Clean bright tanks after every use so they are free of biofilms before packaging. Heat exchangers should also be cleaned after every use, with flow plates cleaned as well.

  For kegs, clean them immediately after emptying because beer stone can form quickly if you delay tending them. Clean packaging lines before and after each run, giving special attention to conveyor belts and crowning or capping heads. Make a point of cleaning walls, floors and drains daily, as these areas can become significant contamination risks if left uncleaned. There’s also the risk of aerobic contamination from wood pores if you don’t clean your barrels regularly.

two people in hazard suits spraying down the production facility of a brewery or distillery

Training Staff and Building a Culture of Clean

  Cleaning and sanitization aren’t necessarily entry-level jobs that just anyone can do. In the craft beverage industry, cleaning tasks require precision and expertise to prevent contamination incidents and produce predictable, high-quality products.

  Your cleaning and sanitation training should cover the various soil types, such as hop resins, protein soils, beer stone, fatty acids, and sugar residues. Matching specific soil types to relevant chemical products can improve cleaning efficiency and reduce waste.

  Your employees should also understand the correct concentration ranges for chemical dosing and how to measure the products accurately. Training should include equipment disassembly and reassembly of gaskets, valves, spray balls, and pumps, ensuring these components are thoroughly cleaned and reassembled correctly.

  During training sessions, you should also plan to cover verification methods beyond visual inspection, such as pH and conductivity checks, ATP testing, and micro-testing for sensitive processes. Lockout and tagout testing are critical for mills, pumps, augers, and automated lines.

  Also important, brewery or distillery cleaning professionals should receive training in record-keeping to maintain consistency and ensure that your facility will pass future inspections.

Cleaning and Sanitation Methods for Craft Beverages

  Various methods are used to clean and sanitize a brewery or distillery. To start, clean-in-place methods automate the cleaning of tanks, lines, and pipes without the hassle of taking them apart. A typical CIP cycle involves a pre-rinse with warm water, an alkaline wash, a possible acid rinse, a final rinse and sanitization with heat or chemicals. CIP methods are efficient and make tasks safer for workers; however, they require proper pump sizing, spray ball design, and chemical balancing.

  Breweries and distilleries also use clean-out-of-place methods for removable items, including fittings, hoses, gaskets, and other small components. COP methods typically involve soaking the pieces in alkaline or acid baths, then scrubbing them by hand and rinsing.

  Fully manual cleaning is still necessary for some beverage production components, such as mash and lauter tuns, floors, drains and other hard-to-reach areas. You can maximize safety with manual processes by using dedicated brushes and color-coded tools.

  Some distilleries use foam cleaning to clean sticky mash spills and sugar residues. Utilizing a foam application, you can apply cleaning agents to large tank exteriors, floors, and walls.

  Meanwhile, steam sanitation helps with the cleaning of barrels and lines. It’s energy-intensive but effective in areas prone to chemical residues. There are also no-rinse sanitizers to explore, such as chlorine dioxide, iodine solutions and peracetic acid. The equipment material, water hardness and contact time will dictate which sanitizer is most appropriate.

How to Choose the Right Chemicals and Materials

  Before comparing specific, commercially available products for cleaning and sanitizing your beverage production area, it’s essential to understand how the basic types of cleaners are useful.

  Alkaline cleaners break down organic soils, hop residues and proteins, making them ideal for kegs, fermenters, and lines. Acid cleaners target mineral scale, beer stone, and milk stone, so they’re helpful as periodic deep cleaners.

  For sanitizing, peracetic acid is fast and effective for low-residue areas. Iodophor is slower acting but gentler on metals. Chlorine is an effective sanitizer, but it can pit stainless steel if misused.

  You can also use surfactants

and detergents to break down biofilm barriers in a brewery or distillery. However, it’s critical to always confirm that the cleaning agent you’re using matches the material, especially for stainless steel, copper, plastics, hoses, and fittings.

  CIP system partners, chemical suppliers, and brewery/distillery-specific consulting services can help you choose the right types of products for your operations if you have questions beyond the basics.

Implementing a Successful Cleaning and Sanitation Program

  As you can see, establishing safe and effective cleaning protocols involves much more than just scribbling down a quick to-do checklist. In today’s competitive breweries and distilleries, cleaning and sanitizing is part of a fully integrated system that covers everything from documented schedules to staff training, safety procedures, proper chemical selection, and continuous improvement based on lessons learned.

  Cleanliness in beer and spirit production goes beyond meeting regulatory requirements and is a core part of responsible, professional craftsmanship. Every product you produce reflects your cleanliness standards and your commitment to your customers. With extra time, attention, and education, you can create a culture of cleanliness that’s not a chore but a pathway to safe, consistent products worthy of your brand’s name.

Evolving Packaging Needs Show No Signs of Abating

Cyndi

A machine’s cost, speed, efficiency, and flexibility are the top considerations when contemplating a purchase.

rows of different spirit and beer bottles in cans and cartons

By Rebecca Marquez, Director of Custom Research, PMMI

Consumer preference drives many of the decisions made by beverage packaging companies. Today’s consumers want additional sizes, flavors, and types of beverages, as well as more sustainable and recyclable packaging options. They also want ready-to-drink and single-serve, smaller-sized packaging, according to the 2025 Beverage Industry Packaging Trends report, from PMMI, The Association for Packaging and Processing Technologies.

  “To continue to fulfill consumer needs, creative and unique packaging being developed today will continue to evolve and will be a focus of development in the future,” says Jorge Izquierdo, PMMI’s vice president, market development. 

  Novel packaging formats require machinery that is up to the challenge. Cost, speed, efficiency, and flexibility are key factors when considering which equipment to buy. So is finding the right supplier — one who will be a true partner far beyond the initial sale, says PMMI’s study. However, the survey revealed that support from suppliers is what many beverage companies feel is currently lacking and could be enhanced.

  The answer to today’s packaging challenges may likely be found in the use of technical integration in the coming years. Even as beverage producers contend with inflation, supply chain disruptions, regulatory compliance, and labor challenges, they must still upgrade existing equipment and acquire new machinery.

  In fact, many U.S. beverage companies anticipate modest to significant increases in machinery investment over the next three years, primarily driven by optimism surrounding company expansion plans, the introduction of new stock keeping units (SKUs)/products, and increased consumer demand.

  Growing consumer demand and interest are also driving the need for more diverse beverage products and packaging sizes, which will prompt a proliferation of packaging formats over the next two to three years, according to PMMI’s research.

  Additionally, the opportunities for co-packers to expand production are contributing to increased investment, as they seek to meet rising demand and support new brands. Beverage manufacturers, as well as co-packers, will need to improve and replace infrastructure to ensure they remain efficient and competitive in an evolving market.

  However, the increase in investments will not be concentrated on a single type of packaging machinery but will be spread across various equipment categories.

  The reasons for these purchases include:

•    Expanding production capacity

•    Enhancing efficiency

•    Increasing flexibility and reducing packaging material

  Not surprisingly, cost is the primary factor when determining what beverage packaging equipment to purchase. This includes the overall price of the machinery, parts, and maintenance. Filling equipment is the most planned purchase, followed by conveying, feeding, and handling equipment, as well as palletizing and load stabilization systems.

  In fact, affordability is a need mentioned by smaller businesses, such as those in the craft beer and spirits industry, with most finding it difficult to invest even on a small scale. They feel that pricing can be a significant barrier to entry for smaller producers, who want to invest in automated machinery. Plus, many craft manufacturers tend to initially focus on practical applications that can help solve real problems on the plant floor.

  Beyond cost, finding the right supplier is equally important for companies of all sizes. In fact, post-sale service and support play a crucial role when selecting a supplier.

Changes in the Offing

  Interview participants identified several factors driving changes in how beverages are packaged and processed. Today, beverage companies are adapting to consumer demand by offering a wider variety of sizes, flavors, and beverage types. As a result, they are working to develop more flexible and creative packaging solutions to enhance consumer interest and drive sales growth.

  PMMI’s research participants also believe the demand for expanded product choices will continue, as consumers seek an even greater variety of drinks and flavors. It’s no longer just beer, wine, soda, and water. Rather, new flavors and types of beverages are proliferating. In addition, consumers will continue to demand more size and format options, driving an increase in new SKUs each year.

  “To meet evolving packaging demands, [survey] participants seek to optimize machinery use by leveraging digital insights and diagnostics for faster, more efficient production,” Izquierdo says. “Downtime directly impacts revenue, making technology-driven troubleshooting a top priority.”

  Beverage industry success depends on innovation and an optimized supply chain, as well as social media- and data-driven marketing strategies, even as market fragmentation complicates the landscape with emerging brands challenging established players, according to research from EY Americas, “Trends in the Beverage Industry: Navigating Change and Innovation.”

  Innovation is crucial for driving new consumer demand, as evidenced by the rise of hard seltzers, the growth of craft beer brands, and ready-to-drink beer alternatives on the alcohol side.

  One of the most significant influences today is the growing emphasis on sustainability and recyclability from both beverage makers and consumers.

  However, current packaging does not always align with consumer expectations, which include the desire to move away from plastics. Nevertheless, rigid plastic remains the most commonly used beverage packaging material today.

  Sustainability continues to hold promise for craft beer and spirits producers seeking to boost efficiency and profitability. Still, priorities are shifting as these companies attempt to balance environmental mandates with cost and operational necessities.

  One threat to the craft beer and spirits industry is the way consumers are changing their view about the consumption of alcohol. A 2024 Gallup survey revealed that 45% of Americans believe moderate drinking is detrimental to their health, with participation in initiatives like “Dry January” rising significantly.

  To take a more in-depth look at today’s evolving packaging industry, download PMMI’s 2025 State of the Industry report as well as PMMI’s 2025 Beverage Industry Packaging Trends study.

Fast-track Your

Packaging Projects

  Packaging and processing professionals who want to maximize their return on investment (ROI) and fast-track projects should attend PACK EXPO East 2026.

  The most comprehensive packaging and processing event in the Northeast and Mid-Atlantic in 2026 will feature more than 500 exhibitors, spread out over 125,000 net square feet of exhibit space in Philadelphia’s Pennsylvania Convention Center on Feb. 17–19, 2026.

  With an easy-to-access location convenient to much of the eastern United States, PACK EXPO East allows teams to attend together for maximum ROI. In fact, the show offers numerous opportunities for networking with fellow team members, peers, industry experts, and personnel from established suppliers and prospective vendors.

  Offering solutions for more than 40 vertical markets, the show provides in-person interaction with machines, materials, and other products related to packaging and processing. It also features free educational sessions on the show floor, covering best practices, industry trends, new technology, and key concerns, such as sustainability, artificial intelligence, productivity improvement, automation, and workforce development.

  The event is big enough to provide attendees with all the solutions they need, but intimate enough for productive, face-to-face conversations with exhibitors to learn how their innovations can solve some of today’s most challenging manufacturing issues.

  Register today for PACK EXPO East. Early registration costs $30; after Jan. 23, 2026, the price increases to $130.