Category: Distillery

The Science and Economics of Continuous Distillation

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picture of Vendome Copper & Brass works distillery equipment

By: Kris Bohm: Owner of Distillery Now Consulting LLC.

If you have a drink of bourbon from a well-known whiskey brand, chances are that whiskey was distilled on a continuous column still. When it comes to making whiskey and selecting the equipment for distilling it is wise to look to industry leaders and their choices can help guide your decisions. Distilleries that are selling millions of cases of bourbon and rye whiskey annually in countries all around the globe use continuous distillation equipment to make their whiskey and that type of still might be the best choice for you.

  Most of the established distilleries in the southern United States made the decision decades or in some cases centuries ago to distill their whiskey on stills that are very different from the pot stills. While distillation of whiskey has its history firmly rooted in small batch distillation pot stills, the modern production of bourbon is a very different business from where it began centuries ago. The vast majority of whiskies you will find behind your local bar today were all distilled on continuous column stills. Whether it is bourbon, rye whiskey, Canadian or Irish whiskies there is a good chance that most of the bottles you’ll find were all made on a continuous column still. Together let’s explore a bit of history, operational theory and the economics of continuous stills. My goal with this article is to help you more carefully consider if a continuous column still is the right choice to make your whiskey.

  The science of distillation is an ancient technology, with history pointing to the discovery of distilling occurring sometime in the first century AD. As knowledge of distillation and technology improved there are records of spirits being distilled for beverage in the 12th century by Latins. Up until the 1800s all distilling was done in batches on what was a known as simple pot still. The concept of continuous distillation first recorded in Europe in the early 1800s. Many variations of the design of continuous still were created during the 1800s. The first well documented continuous still was named the Coffey still after its inventor Aeneas Coffey. This still was reported to have been patented and built in 1830 and was made from wood, iron and copper. The Coffey Continuous still was found to be far more efficient than the traditional batch or pot still. The reason this still design was more efficient was that it uses less energy and labor to produce spirits. A big benefit of the Coffey still was that it could produce much larger quantities of spirits per hour than pot stills in a much smaller footprint. The Coffey still was recognized by distillers as a better choice of equipment to produce distilled spirits on an industrial scale. As continuous distillation grew in popularity through the 1800s many refinements were made to the original Coffey design, which set the continuous column still to be the equipment of choice for distilleries that needed to make large quantities of spirits.

  Lets jump in and talk about the specifics of how continuous distillation works and how it differs from batch distillation. If you understanding of theory on batch distillation science, it is important to approach continuous distillation open minded as the operation and distillation theory is starkly different. The critically important concept one must accept when seeking to understand continuous distillation is the following.

Continuous Column Stills are NOT Pot Stills

  The principles and physics that allow a continuous still to function and separate heads, hearts and tails are completely different from batch distillation.

Below is a breakdown of the steps from start to finish and the operating principles of a modern continuous column still. We will trace the 10 steps that occur in a continuous still which will take fermented distillers beer and turn it into spirits.

1)           Beer is pumped from a tank called a beer well into the still and injected into the column above the stripping plates at a consistent and continuous flow rate.

2)           As the beer is pumped through pipes to the still the beer first passes through a heat exchanger that preheats the liquid before it enters the column.

3)           The preheated beer enters the column on the stripping plates and meets rising steam in the still which flash evaporates the alcohol out of the beer. The steam is directly injected into the base of the still.

4)           The spirits that are extracted out of the beer are carried as hot vapor into the upper portion of the still. In the rectification portion of the still the spirit it is continuously rectified till it meets that target proof that is controlled by the still operator.

5)           As the spirits are rectified in the still the proof increases which separates the tails and fusels with their higher boiling point that are left behind and concentrated on lower plates.

6)           The spirits that the distiller wants to collect moves as hot vapor onto the condensers which continuously separates the heads from the hearts.

7)           The heads and methanol which have a lower boiling point do not condense and remain vapor which is then is vented off the still at multiple condenser points.

8)           The spirits (hearts) is condensed in the condensers, where it passes through the spirit safe and is then pumped to a spirit holding tank.

9)           Thanks to gravity the water and solids of the beer slowly move down the stripping plates of the column to the bottom of the still.

10)        By the time the beer exits the bottom of the column it has less than .05 percent alcohol remaining in it.

  This summary of how a continuous still works is brief and bit simplified. There are pumps, processes and control valves that control cooling and flow to maintain equilibrium and balance in the operation of a continuous column still.

  While continuous columns still are efficient and cost effective to operate, this does not mean they are inexpensive to operate. Let’s breakdown the inputs and outputs in the operation of a continuous still to consider the large scale at which they operate.

  An 18” diameter continuous column still will distill on average 9 gallons per minute of beer. From a production perspective you can distill over 50,000 gallons of beer in a work week if the still is run 24 hours a day. In distilleries running continuous stills of this size they will often run a single shift per day and not 24/7. In that case a continuous column still being run for 8 hours a day 4 days a week will be distilling upwards of 16,000 gallons of beer per week. When this quantity of beer is distilled it can produce upwards of 45 full size barrels of whiskey per week. We will avoid the discussion here of exact cost as the price of the grains and barrels to produce these spirits can vary widely. Suffice to say the quantities of grain needed to make this much whiskey and the barrels to put it all in adds up to a sizable budget. When it comes to considering efficiency of labor my approach is to look how many labor hours it takes to make a barrel of whiskey. In my experience of operating a continuous still versus a pot still I have found it takes nearly 3 times as many labor hours to produce a barrel of whiskey on a pot still versus a continuous column still. When consideration of the difference in labor cost and energy efficiency is looked at it becomes obvious that a continuous column still is a smarter way to make large quantities of whiskey.

  Pot stills are excellent for distilling small batches of spirits and also for distilleries that do not have the budget to produce spirits on an industrial level. On the other hand pot stills are not effective to produce spirits that are comparable in cost to produce as spirits made on a continuous still. One of the biggest hurdle young distilleries face as their sales increase is having the capacity to grow production to keep up with demand. A pot still is difficult to scale up. A continuous still is very easy to scale up production. If you are thinking about starting a distillery, we urge you to consider a continuous column still to make your spirits. The economics are too strong to ignore and the reduction in cost of production is critical to sustain your business as it grows.

  Kris Bohm is the owner of Distillery Now Consulting. When Kris is not helping folks with continuous still he can be found pursuing adventures on two wheels and defending his beer mile record.

Why Fall & Winter Marketing Is Essential

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photo of cocktails surrounded by falling leaves and small pumpkins

By: Hanifa Sekandi

It is pumpkin-spiced latte season. It is the time of year when fall revelers look for beverages that pay tribute to the season, where amber and orange-colored leaves adorn the trees and paint the sidewalks. During this season, beverage choices are intentionally shifting. Consumers who like beverages that signify a season, particularly fall, shop purposefully. They know what they are looking for and look for beverage brands that will meet their desire. This desire is not limited to flavor. It also includes brand aesthetics. The magnitude of these seasons is noticeable among brands when you enter grocery stores toward the end of August and see pumpkin-printed chocolate bars and candy.

  The summer is quite anti-climactic when it comes to in-store branding. Of course, there are many great beverage brands with colorful summer labels and summer flavors. But generally speaking, retail stores do not get into seasonal festivities until the fall and winter. Summer is a great time to build brand awareness and experiment since most consumers are open to trying new beverages during the summer. Whether it is a party, fun, sun or backyard BBQ, consumers take more liberties with their beverage experimentation. New innovative flavors with fresh fruit or premium cocktail blends are quite appealing.

  As the summer draws to a close, the desire for comfort grows. People love familiarity, but more importantly, they hold on to nostalgia. A beer they remember their father drinking on a cool fall night where you can smell campfire in the air while he and his friends tune in to watch football is often a favorite choice. Not only does it draw upon a significant memory, but it is also anchored to a specific time of the year. For some reason, everyone in the room watching the game who brought their beverage to imbibe sticks to what they came with. It is their beverage of choice while they watch the game and enjoy wings. While some prefer a deep, rich ale, others prefer to sip on a robust, smooth whiskey served neat.

  So the question is, why is fall and winter marketing essential? It helps you reestablish your consumer base. Further, it allows you to return to your roots. What makes your beverage unique? It also allows brands to celebrate their consumer and show their appreciation.

The Benefits of Fall and Winter Marketing Strategies

  Now is not the time to hibernate. Understandably, the summer is exhausting. It is the Olympics of beverage marketing. A lot of marketing departments breathe a sigh of relief when this season is over. Summer marketing requires brands to pivot quickly with a multi-tiered strategy. While you develop new labels and flavors to compliment the warmer months, marketing strategies must be carried out thoughtfully. The goal is to appeal to old consumers and new consumers. If effective, new consumers can be easily enticed to try signature beverages from your product line that perform well in the fall and winter but also long-term.

  Beverage brands do not have to look far to see the benefits of fall and winter marketing strategies. Whether it is your local coffee shop or a major brand. Every brand aligns with these two pivotal branding times of the year. Why? These seasons have so many occasions that offer opportunities to consumers actively looking for seasonal items to celebrate and pay tribute to holidays occurring during this time. When coffee shops begin to promote pumpkin-spiced beverages this spurs the desire to get in the seasonal mood. Social media posts about fall attire, comfort foods and beverages have become the norm.

  If your marketing strategies were lukewarm during the summer, heating them up during these months is limitless. A consumer profile is already laid out. Both small and major brands provide it. If your brand has been operating for a few years, you should already have a consumer profile that you can analyze. What were your shortcomings in previous years? What were your beverage wins? What beverages from your product line sell well during this time? How do you remind your consumer that you are their go-to beverage when they think of Thanksgiving or the holidays?

Key Benefits:

●            There is a demand for fall and winter

                merchandise.

●            Other brands are in the seasonal spirit.

●            It’s easy to meet predictable consumer

                expectations.

●            There are multiple opportunities to showcase your beverage with seasonal and holiday branding.

How Can You Heat Up Your Strategies?

  In the summer, there is a fast marketing approach. It is like throwing darts at a board and hoping one will stick. In the fall and winter, your goal is to last all season. Summer trends fade quickly, but fall and winter staples never lose their touch. Cinnamon spice, chestnuts roasting on an open fire, mistletoe and warm apple cider are timeless staples.

1. Timeless Campaigns

  So, how can you ensure that your brand does not miss an opportunity for further brand building and amplification during this time?

  Create a timeless seasonal campaign that draws on nostalgia. If you already have a campaign that has performed well during this time of year, make it your seasonal campaign or your pumpkin-spiced latte. Get your consumer excited to purchase this beloved limited edition. What aspects of this campaign performed well? Draw upon these elements and add a few extra details to this year’s campaign.

  For example, football season or occasions like Halloween allow for creative brand exploration. Bacardi did a great job at tapping into the nostalgia of the season by paying tribute to classic horror films with signature cocktails that they showed their audience how to make. Another extra touch was a seasonal label change on their bottle, which featured white bats on the signature Bacardi bottle.

2. Celebrate the Season and the Occasion

  It is important to not just consider the season but to map out every holiday that will occur from the fall until the spring. From Halloween to Valentine’s Day, there is a lot of marketing mileage to cover.

  Create a marketing roadmap that will detail what you will do each month and each season that falls within that month. Then, curate a list of activities that occur during the seasons and are associated with a holiday or occasion. Football Sunday, what does this mean to your audience? How is your beverage best enjoyed while watching a game? Leaning toward deeper and richer tones for labeling should also be considered.

3. Become a Household Fixture

  Just like Bed, Bath and Beyond, you should aim to become a household fixture synonymous with fall. All merchandise should support consumer buying choices at this time. Perhaps a candle inspired by the ingredients in your beverage or dish towels with fall colors. Anything and everything that falls within this category.

  When creating social media content strategies, create a picture in the buyer’s mind that your beverage fits their lifestyle ideals this season. Images of people sitting by a campfire outside or perhaps playing card games indoors. Here is an opportunity to place your product in familiar settings along with familiar activities. The fall and winter are about being home. To become a go-to brand, you need to be perceived this way. For example, most summer-marketed beverages experience a dip in sales in regions that experience colder seasons. This is why it is good to shift the marketing focus for a summer beverage to regions that remain warm all year. This sentiment should be carried over to fall and winter marketing strategies where the beverage experience is not fast and fun but more so slow and steady.

  Some beverage brands understand that their resources are best spent during the fall and winter. Understandably, you cannot be all things for everyone. Also, some brands are happy with their signature product. It performs well, and its consumers like it. In this case, the goal is to increase their consumer outreach while keeping their existing consumer base happy. Since beverage sales have peaks and valleys, capitalizing off of peak seasons will help to mitigate the dip in sales during low seasons such as dry January or the summer if your beverage is not a go-to choice.

  The main component to remember when building a fall or winter marketing strategy is that your consumer desires familiarity and predictability with simple yet effective surprises. Showcase how your brand fits perfectly into these slower times, where quality connections and interactions are of higher value, where beverage choices are more of an added fixture complimenting a friendly gathering and not the star of the party.

Raising a Glass to Success

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Tips & Best Practices for Craft Beer and Spirit Producers

3 men toasting with 3 full beer glasses

By: David DeLorenzo

Beer and spirit development is something of an art. The masterminds behind these crafts must have keen awareness and attention to detail to ensure the best result, from flavor to body.

  However, if they own and operate the establishments that serve their specialty sips, they must also be masters of entrepreneurship. This often includes leading and managing staff, handling payroll and ensuring the company’s insurance properly protects the business, its staff and patrons.

  As beer and spirit producers are experts in their craft, I am an expert in hospitality insurance, specifically for bars, restaurants, tasting rooms, brewpubs and other establishments that serve food and alcohol. This niche market has unique, intricate circumstances, so business owners need to understand the ins and outs of insurance.

  Craft beer and spirit producers don’t have to get an entire education on the topic, but being informed enough to find the right broker to guide them will make a difference. From the perspective of a 20-plus-year veteran insurance broker who carved out a niche just for this set of businesses, here are some tips and best practices to succeed in this market.

One Small Lease for a Business, One Giant Leap Toward Fulfilling a Dream

  In many cases, a business starts with one inkling of a dream. Soon after, a lease will likely be required to make this dream a reality. The importance of the establishment’s location cannot be understated when transforming the mirage into a tangible reality. Second to the foundation of the dream is the lease that will define the leasee’s responsibilities and entitlements. Insurance on the lease is pivotal in that it can serve to safeguard the investment of your dream.

  Most leases have their own set of insurance requirements that can help set the stage for the success of a business. Paying close attention to the foundational aspects of the lease, as detailed next, can help ensure best practices and a solid foundation for the future of the business.

Assessing, Addressing and Avoiding Risks

  Having been in the hospitality industry for well over 20 years now as both a restaurant owner and an insurance broker, I have seen and experienced a lot of unique situations from different perspectives. So, when I say that understanding risks and exposures is a crucial factor of success, it’s coming from a place of lessons learned and knowledge gained. With that, here are some of the most beneficial ways to assess, address and avoid risks as a business owner in the hospitality industry.

  Serving liquor can bring joy and perils to a business owner who makes and serves wine, beer or spirits. While a clever cocktail menu enhances many establishments’ vibrant energy, every pour possesses potential risk, as overconsumption of alcohol often brings the consequences of poor decisions from fights to driving under the influence. Having insurance for liquor liability is a non-negotiable in protecting your establishment from lawsuits with allegations of negligence or overserving. Know the laws in your state and ensure your business is appropriately protected.

  Also vital to an establishment selling craft beer or spirits is proper assault and battery coverage. Similar to liquor liabilities, assault and battery instances are often a result of overconsumption. To this end, you must be careful when safeguarding your establishment. 

  Consider General Liability the frontline of defense for your business. It will protect you when accidents happen on your property. This coverage could prevent a patron tripping over a loose tile at your establishment from becoming a lawsuit. While the occurrence and aggregate limits of insurance companies can seem overwhelming, understanding them is vital as they are the backbone of your safety net.

  Your establishment’s success largely depends on your staff, from the kitchen team to the faces that are seating and serving your guests. A solid employee base is essential; protecting those employees is even more important. Owners also need to protect their establishment from claims arising from hiring disputes to allegations of discrimination. This is why Employment Practices Liability Insurance (EPLI) is key. Hired and Non-Owned Auto is another important level of coverage for anything from sending an employee on an errand to making deliveries.

  Cyber Insurance is paramount for protecting a wine bar or taproom and its customer data in today’s digital world. Umbrella Insurance can be likened to the roof over your establishment. This coverage extends beyond the existing policy limits and offers additional protection. Not all umbrella policies are the same, so it’s essential to understand the terms, coverage, and exclusions.

  Ultimately, when it comes to coverage, it’s not just about more; it’s about the right coverage for your specific establishment. This is especially true in the case of a bar or restaurant that is serving wine, beer and spirits.

Brokers vs. Insurance Companies: Know the Difference

  Just as coverage is not created equal, not all help is the same. Business owners must know who to turn to and when. Quite simply, a broker is more than just a middleman. A broker will advocate for your business and help guide you through the complex world of insurance. A good broker will understand your needs and help you find the right fit for your establishment. Insurance companies are the policy creators and the ones who bear the risk.

  I cannot overstate the importance of working with a specialized broker who knows the intricate ins and outs of the craft wine, beer and spirits industry. They can become your partner in finding the best insurance for your business and throughout your journey as a business owner.

Prove It: The Value of the Paper Trail

  Documentation and certification are paramount. You need coverage, yes. But more importantly, you must be able to prove you have it when the time comes. While paperwork may seem daunting, it’s yet another line of defense in the protection of your business.

  Whether you dream of opening a wine bar or are already immersed in the hustle and bustle of a thriving taproom, there’s never a wrong time to ensure your insurance and policies are airtight. With these tips and best practices, you can rest easy that your business is protected so you can focus on your craft.

  Finding the right partners to help take your dream to the next level or to help you continue to thrive is at the forefront of your success. Through trust, communication and camaraderie, a long-term partnership with your specialized broker can serve as an important relationship to propel your business. 

  Out of his passion for serving the restaurant and hospitality industry, David DeLorenzo created the Bar and Restaurant Insurance niche division of his father’s company, The Ambassador Group, which he purchased in 2009. For more than 20 years, he has been dedicated to helping protect and connect the hospitality industry in Arizona.

For more information visit…

www.barandrestaurantinsurance.com

Mississippi River Distilling Company:  Driving Success Through Authenticity

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people standing around the bar at Mississippi River Distilling Company

By: Gerald Dlubala

Brothers Ryan and Garrett Burchett had no experience in the distilling industry when they decided that making whiskey for a living sounded pretty cool. Both had successful careers, but after two years of research and training, they opened the Mississippi River Distilling Company in Le Claire, Iowa, in 2010.

  “We had no experience in the industry but saw it as a way to get in on the ground floor of something pretty cool,” said Ryan Burchett. “We spent a couple of years looking for opportunities for research and training and came up with a business plan. Our thinking was that the worst thing that could happen was that we learned a lot about whiskey, which is pretty cool, too. But after that, we felt we were in a good place to start. From there, our plan just kind of snowballed, and the next thing we knew, banks were offering us the money we needed to make the distillery happen. We both left our day jobs to make booze for a living, opening the Mississippi River Distilling Company in 2010.”

  Burchett said that the name gives them a sense of place and references their history, located right on the banks of the Mississippi River. The distillery is located on North Cody Road, just a short distance from where Buffalo Bill Cody, American frontiersman and legend, was born. To honor that heritage as well, Mississippi River Distilling Company’s flagship line of bourbons and whiskeys all carry the Cody Road name.

With Legal Hurdles Lifted, Mississippi River Distilling Company Takes Flight

  “Iowa is one of the top alcohol beverage producers in the U.S. that no one talks about because of all the grain-neutral spirits produced here,” said Burchett. “But when we started, Iowa was still a regulated state. We could certainly distill here, but we were very limited in what we could do regarding sales at the distillery.

  “When we first started, visitors could tour and get two ¼ ounce samples of our product,” he said. “If they liked it enough to buy it, they could buy two bottles per person, per day. We worked really hard over the years to get changes made to level the playing field between distilleries and neighboring breweries and wineries. We wanted to give visitors the experiences they’ve become accustomed to when visiting those establishments. When that change happened, we could now sell cocktails, drinks by the glass, beer and wine from our neighbors, and increase our bottle sales. Deregulation with increased types and opportunities for sales and the allowance of tasting rooms led to us buying the property next door and turning it into an event center so we can host weddings and other special or community events.”

  “Then, a couple of years ago, we looked at a distillery in Davenport that never really got on its feet,” said Burchett. “We were able to take it over in a relatively easy transaction. It was nice from an administrative standpoint, but this location gave us the room we needed for a bottling and packaging line that would’ve taken up all of our warehouse space in Le Claire. Davenport turned out to be a perfect fit and an opportunity for us to expand. There was a huge warehouse in the back of the property with a loading dock and plenty of space for a tasting room up front. So now, we still manufacture and process everything in Le Claire, but bottling and packaging are in Davenport.”

Using Local Ingredients and Remaining Authentic Are Core Principles

  “We only use the finest local ingredients,” said Burchett. “We know the names of every farmer that grows our wheat, barley and corn. You know, when we started here in Le Claire, we were geared towards tourism, as is the whole town. I mean, American Pickers are just down the street and pull visitors in as well. There are 40-50 thousand tourists that travel through here annually, so authenticity is critical to our success. We noticed relatively quickly that using 50-pound bags of milled corn could get pricey compared to buying bulk corn, so we decided to get a mill and found a local farmer who was willing to provide the corn.

  He continued, “After that, we went down the line of our needs and thought, if we can do that locally, why not do the same with other things? Authenticity has been essential to us from the beginning and continues to be one of our core principles because we’re pulling the curtain and letting visitors come right in and see what we do and how we do it. There were only a few hundred distilleries when we started, and now that number is pushing 3,000 across the country.”

  Part of that authenticity is being true to their brand; the Burchett brothers are certainly that. By not trying to push imitations or less-than-authentic processes, the production process used to make Cody Road Whiskey is an open book. It starts at the mash tank, where the grain is milled into fine flour and cooked in preparation for fermentation. After a week of fermentation, it’s into the still to concentrate the alcohol through distillation. Burchett takes only a narrow cut of each distillate, ensuring only the sweetest and smoothest spirits make their way into the bottle. The spirits are put into the barrel and then into the barrel room. Each barrel is filled and stored on-site, containing only their whiskey before being deemed worthy of the Cody Road label. Each bottle is hand-numbered with its identifying batch and bottle number so drinkers can go to the website and learn the names of the farmers who provided the grain and what went into the whiskey in their glass.

  Burchett told Beverage Master Magazine that he used to distribute across almost half of the United States but has since decided to pull back, focusing on distribution to the Midwest states within sensible driving distances.

  “We want to concentrate our growth efforts on local opportunities,” he said. “We want folks to come into our locations, get to know us and then try and buy our products to share with others. We do have full-time sales reps in Chicago and here in Iowa, but in our 14 years in business, I can put my finger on two distinct spots in the timeline and see two different businesses as we’ve continued to grow and then change from that growth. All of our processes are performed on-site, from bringing in the raw grain to the final bottling and labeling. We are family-owned and operated, and we believe strongly in taking ownership of and being good stewards of our land, raw materials and water supplies.”

It’s All About Rosie

  The Mississippi River Distillery Company overlooks the Mississippi River, but in this case, the river may not be the thing that demands the visitor’s attention. The star of this show is the distillery’s still, affectionately named Rosie, in true “River Rose” fashion with her mesmerizing, eye-catching curves. The building layout was planned around Rosie, so whether you are inside having a drink in the grand tasting room or simply passing by on your way somewhere else, Rosie is always in view.

  “Our still was handmade in Germany specifically for us,” said Burchett. “We chose to go with a German-made still because, at the time, there just weren’t many options for this caliber of small stills stateside. It’s gotten better, but the equipment being marketed at the time was being made

for ethanol production or for major, large-scale distillers. In Germany, it’s legal to preserve your grain by distilling it, and there were three main producers in southern Germany that were already making this equipment for farmers. We hooked up with one of them and went to Germany while our still was being built.”

  “Rosie is a hybrid still consisting of a German boiling pot and two tall rectification columns that house distillation plates that can produce the purest vodka, up to 95 percent alcohol,” he said. “We can turn off some or all of the plates to make anything from a traditional whiskey in the traditional pot still fashion up to whatever pops into the distiller’s head. And honestly, if you can make it from grain, we’ve probably tried it at least once. The still gives us the flexibility to be creative and have a little fun along the way. You know, we’ll make a small batch, and we’ll put it out and try it. Sometimes they’re great, and we’ll bring them back; sometimes, they’re a big pain in the butt to make, and we swear we’ll never do that again. But to keep local interest, having something different like a special release or seasonal spirit on the menu is always nice.”

Finding Success Through Innovation and Adaptability

  “You know, from getting into the bar business to making sanitizer through COVID through branching out into the event center business, we’ve never been afraid to do whatever it takes and pivot as things have come our way,” said Burchett. “With all the things that have come along and popped up, we’ve gotten pretty good at tap dancing around and creating new opportunities for success, including our willingness to try new, trending flavors and spirits. The advantage of being a small business is knowing your strengths and when it’s okay to jump in and try something different. Yeah, we’ve done a lot of that and continue to do so.”

  The flagship Cody Road Bourbon is the Mississippi River Distilling Company’s best-seller. But over the past year, Burchett says that their Iowish Salted Caramel Cream Liqueur has been giving their bourbon a race as their most popular item. Additionally, Burchett makes a batched Old Fashioned ready-to-drink that consumers can’t get enough of.

  “The Old-Fashioned started as a drink we came up in our bar,” said Burchett. “It became so popular that we started bottling it for a ready-to-drink option, and it’s gone on to be Iowa’s top-selling ready-to-drink cocktail. We mix bitters, bourbon and sugar, put the mix back in oak barrels and let it soak for a month or two. Then, we filter and bottle it as a ready-to-drink old-fashioned cocktail. It’s just one way we look for the opportunities that present themselves”.

Pride in Your Business, Pride in Your Employees

  “Our employees that started with us from the very beginning are still here, and there’s something to be said about that,” said Burchett. “It’s something to be grateful for and we do take pride in that fact. It speaks a lot about the positive family culture we continue to have and promote here. The only other advice I would give someone going into this business is to figure out your budget as far as what you think your money needs are and just go ahead and double that amount upfront. Save yourself some headaches, settle in and be ready to grow and pivot from your original vision.”

  Mississippi River Distilling Company produces about 15,000 cases a year while adhering to its core principle of sourcing all grain from within 25 miles of the distillery. The distillery is located about halfway between Chicago and Des Moines, two miles north of I-80 on the Illinois/Iowa border. Mississippi River Distilling Company offers locations for private events, opportunities for charitable giving and a private, customizable whiskey program to create and distill your own whiskey.

  For additional information, check out their website or contact them at:

Mississippi River Distilling Company

303 North Cody Road

P.O. Box 801

Le Claire, IA 52753

www.mrdistilling.com

563-484-4342

info@mrdistilling.com

Cover Feature: Water Sustainability in the Distillery

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water feature shown inside Ole Smoky Moonshine Holler distillery

By: Becky Garrison

From cooling and cleaning equipment to diluting spirits, access to water remains a critical component for any distillery. For those distilleries looking to reduce their environmental impact while delivering the highest quality spirits, the following are some suggestions for how to improve the use of water in the distillery.

Securing Water Source

  When possible, start with the most pristine water available. Hood River Distillers (Hood River, OR) has been using the same water source for the last 90 years, all coming from the Elliot and Coe Glaciers on the Northern Side of Mt. Hood. To ensure that they can continue to access this water source, they partnered with Freshwater Trust. Caitlin Bartlemay, Master Distiller for Clear Creek Distillery and Hood River Distillers, Inc., /describes the benefits of this partnership. “With our growing donation through the Timberline Vodka brand, we can help them perform science and data-driven research on what our freshwater ways in the Pacific Northwest need to be repaired and restored.

  When looking for a pure water source for a distillery, Bartlemay notes a few considerations that need to be taken into account. First, send in a water sample for testing, Keep an eye out for numbers for factors such as the mineral content, pH, and chlorine. If the distillery uses municipal water, ask where they are sourcing the water and if they have multiple sources that they switch between. This will give an idea of how often they switch and what the chemical and organoleptic qualities of each source are. 

  As Bartlemay observes, “At the end of the day, nothing is better than good old-fashioned taste testing.  Taste your water against quality bottled water brands and see what you taste.” Next water down a spirit sample with distilled water and then water down another spirit sample with the water you want to use. Then compare how they both taste. Hold these samples at the new dilution for a few days and taste them again.  Have lots of people taste these samples and collect quantitative answers on the flavor and aroma of the various spirits sampled. “What your water test says and what you learn from your taste tests will help determine what treatments you may need to explore if you need to explore any at all,” Bartlemay opines.

Conserve Water by Sourcing Grains

  For Jason Parker, Co-founder of Copperworks Distilling Co. (Seattle, WA), sustainability begins at the farms where he sources the grains used in his spirits. He supports those farmers who engage in good farming practices such as dry farming along with soil conservation efforts like growing cover crops and limited or no-till farming. As these environmental initiatives tend to produce a lower yield per acre than conversational farming, Parker ensures these farmers will receive the same price for their grains by paying them per acre planted rather than per bushel.

Saving Water Through Temperature Regulation

  Mike Gifford of Blackfish Distillery (Auburn, WA) reported they were able to reduce their water usage by 95% last year by carefully refining their water usage against their distillation process. He described the cooling management for the condenser components of their column as a balance between incoming water temperature, outgoing water temperature, water flow rate in Gallons per minute, and proof output at each stage of distilling. According to Gifford, “Distillers can operate a still just fine with crude valves and produce acceptable alcohol output, but they’ll have no real management of the above variables until they add gauges, valves, and temperature monitoring of the output water.”

  In his estimation, adding precise valves with flow meters built in is inexpensive and is the starting point for reducing water usage. Also, monitoring the temperature of the output water enables them to use the maximum heat capacity of the water without over-cooling their distillation column. Through this process, they were able to go from 3 to 5 gallons per minute down to .5 gallons per minute very quickly.  Plans include recycling their coolant water by combining off-the-shelf water sanitizers and taking advantage of the natural cooling that occurs at night.

  According to Ayisha Mares, Assistant Distiller, VARA Winery & Distillery (Albuquerque, New Mexico), the most important thing they do to help reduce their water use is the chilled water loop system. “This recirculates water through heat exchangers and a holding tank, saving approximately 3,000 gallons of water per distillation cycle,” she observes. The loop consists of heat exchangers, a big holding tank (water reservoir), and a pump to move the system.

  Stephen Hopkins of Aimsir Distilling Company (Portland, OR) points to the challenges of obtaining a permit for a closed-loop cooling tower from the city of Portland. “I often wonder if both the city and we would have been better if we had gotten some help in the permit process to get a cooling tower. The city would also get a good ROI on helping to fund projects like that,” he notes.

Purifying Water Using More Sustainable Practices

  Rick Stillwagon of Stillwagon Spirits (Charleston, OR) stresses how municipal water systems are under attack and are becoming compromised. “All water should be treated as suspect and go through some purification process before drinking or cooking. It isn’t difficult or too expensive to make sure the water you have access to is safe to use. It does require a bit of effort,” he opines.

  To prevent their spent wash from contaminating the local water supply, they adjust the pH of their spent wash before disposal. In the future, they hope to partner with local farmers who can use this spent wash to irrigate their fields.

  Stillwagon finds that ozone can be more effective than chlorination in disinfecting water against bacteria and viruses. When ozone decomposes in water, it creates free radicals that oxidize organic material in the membranes of bacteria, viruses, and parasites, which weaken, rupture and kill their cells. Also, Stillwagon observes how ozone can remove trace amounts of dissolved metals like iron, manganese, and copper by oxidizing them into solid particles that can be filtered out, as well as reducing or eliminating tastes and odors caused by chlorine.

  After the ozone treatment, Stillwagon passes the water through sediment filters and then through a series of regularly maintained activated carbon filters. This makes sure the water is as pure and good-tasting as possible.

Reclaim and Recycle Water

  As collecting rain in Oregon is legal, Stillwagon seeks to capture some of Oregon’s liquid bounty. As he noted, “Collection, storage, filtration and purification isn’t difficult or expensive.”

  Also, Stillwagon finds recycling gray water isn’t difficult as mechanical filters can remove solids and sediment. Carbon filtration can remove several problem compounds, and biological slow sand filters can remove most pathogens. In Stillwagon’s estimation, these systems require a bit of effort and hardware to set up, but they are robust and hardy can can last for decades with proper maintenance. He finds that processing black water is a bit more complex but can be processed through mechanical and biological systems like “The Living Machine.”

Other Methods to Reduce Water Use in the Distillery

  Other practices implemented byVARA Winery & Distillery to reduce their water use include installing high-efficiency cleaning systems called CIP (Clean-In-Place) that use less water by utilizing more efficient cleaning agents, as well as regularly maintaining and repairing any leaks that they have incurred to prevent unnecessary water loss.

  In a similar vein, Kim Karrick, Owner and Distiller of Scratch Distillery (Edmonds, WA), plumbed a pipe to help reclaim some water from the distillation process to use for their mash water. This action diminished the amount of water required, as well as reduced the amount of heat required.

  In 2023, the EPA recognized eight distilleries for being the first to earn EPA’s ENERGY STAR certification for superior energy performance. Their energy-saving recommendations include conserving water with a focus on the steam and cooling systems. For more information about ENERGY STAR certification for distilleries, log on to their website at https://www.energystar.gov/industrial_plants/improve/distilledspiritsfocus.

Cut Costs, Boost Productivity Through POS Software and Equipment

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Working Smarter, Not Harder

By: Cheryl Gray

The same software and equipment that allows a restaurant or bar customer to pay a bill right at the table is being deployed in breweries and distilleries around the globe.  Software and equipment that handles everything from point of sale to inventory is making the job of containing costs and increasing productivity easier for brewers and distillers using this technology.

  The payoff is realized through a bottom line that can show a respectable boost in productivity by freeing employees from excessive paperwork. That means more time is spent on making and selling products, not on the tedium of tasks that can rob any operation, large or small, of time and, ultimately, money.

  Some POS systems and equipment on the market not only fulfill the production, inventory and sales needs of breweries and distilleries but also perform some of the same tasks for wineries, taprooms and cideries.

  Whether breweries and distilleries are focused on customer retail experience or strictly production aspects, a point-of-sale system provides a way to streamline internal management tasks while, at the same time, pushing growth through technology. Automation is the operative word.

  Equipment, such as touchscreen monitors, allows breweries and distilleries to enter orders. Credit and debit card readers can handle payments with ease. In all cases, these and other kinds of transactions are simultaneously backed up, creating support documentation whenever it is needed. Inventory tracking, employee management, and other tasks formerly done by either hand or outdated software can now be quickly and accurately accomplished.

  Some POS software options now on the market work seamlessly with multiple devices, including tablets, desktops, laptops and industrial machinery. Some can be synchronized with barcode scanners and scales. Breweries and distilleries that utilize loyalty programs can use the software to create cross-platform reward programs to keep customers coming back for repeat business. Another use is printing invoices instantly and then sending those invoices by either email or a QR code. For customer retail-focused breweries and distilleries, handling different methods of payments, splitting checks and even managing tips can be accomplished by using a POS system. With some of the available POS systems, offline payments are automatically synchronized whenever the POS is reconnected.

  Spot-on bookkeeping is a necessary part of any brewery or distillery. A POS system can ease the job with timely and accurate reports. Some systems provide intuitive data with charts and graphs mapping out current and projected sales.

POS software and equipment present many options as a management tool. Breweries and distilleries can assign each employee specific access by creating unique staff login credentials using, for example, PIN codes or badges. POS systems can also generate sales reports and assist with time clock management.

  For inventory, POS systems offer analytics and visual data in real time. Breweries and distilleries can track in minutes how individual items are selling or how specific categories of items are faring. Advanced features, such as tag and comp tracking, are available.

  POS systems more focused on production offer a different set of features than those that are customer retail-focused. Among the core features of these types of POS systems is software to manage brewhouses and cellars.

  These systems provide log management options for brewhouses and distilleries. Managing daily tank checks and contract brewing are also features. These systems can also monitor yeast management and calculate material use in real time.

  For breweries, streamlining beer production through a POS system allows for beer production scheduling using a tank scheduling feature, material requirements planning, visual data such as calendars, production setup specific to each brewer and forecasting. 

  Another feature is managing beer formulas, designed to replace spreadsheets and instead use software for recipe management and monitoring costs for materials and inventory in real time. Streamlining regulatory compliance reporting is another important feature. This includes timely reports of excise taxes, international reporting and documentation as required for the TTB Brewers Report of Operations.

  Quality control options feature integrated quality control testing that includes evaluating formulas and analyzing recipes by test results based on in-bound raw materials tests and in-process quality control tests. Accounting features allow for a quick analysis of a brewery’s current production cost, projected future costs, and any calculations needed to assess the costs of developing new products.

  An analytics feature for both breweries and distilleries allows for smooth interfacing of POS software with programs that include Microsoft SSRS, Microsoft Crystal, Microsoft Dynamics ERP, Excel-based dashboards or Power BI from Office 365. Other POS systems deploy Apple devices, such as iPads. Another POS system feature is managing supply chains through assessing inventory on hand, sales orders, sales forecasting, keg management and mobile data collection.

  One plus to consider is a POS system that is flexible enough to be customized to meet the specific needs of a brewery or distillery, including variations in process, packaging, ingredients and multiple stages of production runs.

  On the distillery side of POS systems, tracking inventory, quality control, bookkeeping, managing employees, production and ordering materials are just some of the areas that come to mind when searching for the right system. The system also captures the potential for offline sales.

  Distilleries and breweries often participate in offsite events that allow them to introduce products to new customers they may not otherwise reach. Venues, such as local fairs and farmers markets, often occur where internet service is spotty. A POS system that supports offline use permits off-premise sales transactions to be stored when a credit or debit card is swiped. Once the distillery or brewery has that information captured with its POS system, the transactions are processed like any normal transaction after the system reconnects. The reward can result in a new revenue stream. One distillery using a POS system that supports offline sales reported revenue of more than $13,000 from offsite events in one year alone.

  Keeping track of inventory is just as important to distilleries as it is to breweries. Just as a POS system can track beer production, it can also keep up with distillery production, including tracking materials, recipes and employee time. On the retail side, a POS system can track which spirits are running low, versus which are lingering on the shelves. It can also keep track of customer tastes and tabs. 

  Costs for a POS system and accompanying equipment can vary. Experts advise that it is best to consult with a company that will factor in the size of a brewery or distillery and how it intends to use the software and equipment. In addition to monthly licensing fees to use the service, there is also the cost of leasing or purchasing equipment. How much equipment will be needed will depend on the size and scope of the brewery or distillery operations. Of course, knowing what post-sale customer service and technical support are provided is another important factor when choosing a POS system and accompanying equipment.

  Running a brewery or distillery is no small feat. Making and keeping one profitable begins with putting the right tools in place to ease operations, boost profits and decrease costs. Using a POS system may provide the solution for building and sustaining a successful business brand.

Location, Location, Location:

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How to Select the Perfect Location for a Distillery

map flags on green grass

By: Kris Bohm: Owner of Distillery Now Consulting LLC.

When someone begins the journey of starting their own brand-new distillery one of the earliest decisions that must be made is finding the right location where the business will operate. Location scouting can be a tricky process to navigate as there are different options and someone who is new to distilling may not know if a potential location is properly suited for a distillery. Properly vetting a location where a distillery will be built can sometimes be the difference between the business succeeding and failing. In this article I’m going to break down all of the key factors to look at when considering a location. The difference between the right and wrong place can often mean hundreds of thousands of dollars in difference of build-out cost that could be avoided. Let’s look at some of the key details to help you find the perfect location for your distillery. It is important to have an idea about what type of business your distillery will operate. Will it be a more manufacturing focused or tasting room / customer focused business? The answer to this question will play a strong role in selecting a location as we go through things. Lets jump right in to determine if a location is the right place for you.

  The first item we look at when vetting a location is zoning. Most distilleries end up being built in areas zoned industrial. If a potential building is zoned light or heavy industrial to allow for manufacturing of distilled spirits it will make the process of permitting for construction and operation far easier than it would be if zoned differently. In many potential locations there are buildings that may seem excellent fit but the zoning of the building itself may completely prohibit a distillery from operating in that building. Taking the time to contact the local authority who regulates zoning within a given area is the fastest way to determine the viability of a location.

  Throughout the world there are many terms that define zoning. One term we often encounter in big cities is that areas are zoned for manufacturing. As you start to look for locations to build a distillery that are zoned industrial you will often find that these locations are less than ideal for drawing visitors. Industrial zoned areas are often far flung from commercial districts and do not draw foot traffic or visitors easily. A location like this can create big challenges for a new startup distillery as attracting visitors to an industrial neighborhood with little or nothing for visitors to do beyond visiting your distillery can create a barrier to a successful tasting room. If you find yourself comparing two different buildings and one location is closer to commercial districts or tourist areas it would be wise to go for the location that is more accessible for visitors. Sometimes the hunt for the perfect building or potential sites that are zoned correctly does not conclude with a good location being found.

  In this case there may be the option to pursue a zoning variance for use of the location that is currently zoned for other uses. Be careful with this approach as zoning variances can be costly and timely to obtain. It is best to consult with local officials and experts prior to committing to use a location that is not zoned appropriately

  Utility service is a very important factor in considering the viability of a potential location. When it comes to utility service there are several utilities that are considered. Fire protection (sprinklers), Domestic water, Electric service, Gas service, Sewer are the five common utilities that are essential to assess when considering a location. It is quite rare that a location will have all the utilities sized correctly for a distillery, but if some utilities are sized right this can reduce overall construction costs. When a building doesn’t have all utilities needed we will typically approach the city to determine what it will cost to upgrade so that the equipment and building can function as intended for a distillery. Let’s dive a bit further into each of these utilities to discuss what we look for in each type.

  Fire protection is essential. A distillery is in the business of making flammable liquid and from a utility stand point mitigating fire hazards is done with sprinklers and fire alarms. The ideal fire protection in a building would include sprinklers as well as a nearby fire hydrant or hydrant on the building. Sprinklers and a hydrant are typically adequate for most distilleries. If the potential building you have found does not have fire protection you will want to find out what it will cost to bring these utilities to your building. In some instances we have seen the addition of sprinklers and a fire hydrant cost hundreds of thousands of dollars. Most folks would prefer to avoid a cost like this if at all possible so finding a building that is sprinkled will drastically reduce the cost of  construction.

  The availability of natural gas near the building or already in the building is an essential utility for a distillery. Heating a boiler via natural gas to create steam for heating of the manufacturing equipment is the most cost-effective way to heat distillery equipment. A building with a natural gas line that is large enough to meet the demands of the steam boiler and other equipment that requires gas in the building will help tremendously to reduce the cost of construction of the distillery. If natural gas is not available some distilleries will use liquid propane gas instead. Propane is more expensive to heat with versus natural gas and is not the preferred fuel, but in rural areas this may be your only option.

  Water is the lifeblood of a distillery and is an essential utility that must be carefully considered. Size of a water line and quality of water is essential to the process. To determine if the size of the water line and service is suitable. We look for a water line 1 inch or larger coming into the building and a 1.5-inch line is ideal for most smaller distilleries. Water is part of almost every process in a distillery, having an abundance of water can mean the difference between spending hours waiting for the water you need to fill a tank or having the water you need on demand to get the work done you need to do.

 Sewer and liquid waste water lines are an essential utility service. Many old buildings have small sanitary sewer lines that are not large enough to handle the high flow rates of wastewater that a distillery produces. The ideal sewer line size is at minimum a 4 inch line and is ideally connected to floor drains which will collect most washdown and waste water from the manufacturing process. It is preferable that the line be made of cast iron as opposed to PVC but not essential. The reason for this preference of cast iron is that some processes within a distillery generate very hot water that is hotter than the operating temp that PVC can handle.

 The final utility that we give consideration to when looking at a potential location is electricity. Operating manufacturing equipment related to distilling has fairly large electrical utility requirements. Large motors such as those on cookers, stills and chillers run off three phase power and you certainly can not just plug them into a standard outlet. Between the motors required for the distilling equipment and other loads such as HVAC the amperage load is quite large. At minimum a location that has three phase power with at least 400 amp service is a starting point for the electrical service needed for all of the equipment to operate. In larger distilleries electrical loads can vastly exceed 400 amp service so determining what equipment you will be installing and what the potential electrical load is can help in considering a location. It is good to point out as well that upgrading electrical service if there is already three phase service on the building is usually an easy service to upgrade.

  Along with consideration of zoning and all the utilities, looking at the condition of an existing building is important. The condition of the roof, the floors, walls and structure itself are all quite important when considering a potential building. In a recent instance where we were considering a location for a client it was determined that the floor of the building could not adequately support the weight of the equipment we intended to install. Replacing this floor to bear the weight of the equipment added so much cost to the preliminary construction budget that it was determined that the location was not suitable for the business.

  If you are in the process of considering locations to build your distillery, take your time in vetting the potential location. Email us at Distillerynow@gmail.com for a free copy of our detailed Site Assessment Checklist to help consider your location.

Craft Producers Overcome Challenges

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Automation & Sustainable Packaging Help Maintain Growth

man standing in a dark room in front of very large illuminated key hole looking through key hole

By: Rebecca Marquez, Director of Custom Research at PMMI

After years of soaring sales, craft brewers and distillers are facing forecasts for slower growth. Competition is stiff, margins are under pressure, craft beer sales have stalled, and consumer preferences are shifting toward spirits, hard cider, and non-alcoholic options, according to Craft Beer and Spirits: Success Through Packaging, a white paper and infographic published in February 2024 by PMMI Business Intelligence, a division of PMMI, The Association for Packaging and Processing Technologies. The craft industry also must overcome workforce shortages, address the growth in e-commerce, and meet continuing consumer demand for sustainable products and operations.

  To overcome these challenges, craft brewers and distillers are offering a broader array of products, packaging formats, and sizes. Some firms have begun offering copacking services to foster growth.

Adding Products and Services

  The best sellers of yesterday do not necessarily stay best sellers. As a result, craft producers must change their product lineup to appeal to today’s consumer and introduce the product, size, and multipack options they want. Innovative products and seasonal and special releases also help spark consumer interest and build brand identity. As consumer tastes have changed, some firms have turned to copacking to absorb excess capacity and boost revenue.

  This level of product variety requires adaptable equipment, which minimizes changeover time when switching among a range of packaging sizes and shapes and handling variations in labeling and secondary packaging. Such flexibility maximizes operational efficiency.

Automating Operations

  Producing a broader array of stock keeping units for in-house or private-label brands requires flexible processing and packaging lines. Increasingly, the flexibility needed to efficiently switch among a growing range of packaging sizes and formats is provided by automation, which also can enhance the working environment and help offset worker shortages and difficulties with recruiting and retention.

  Automation also can boost efficiency, quality, and productivity, according to The Future of Automation in Packaging and Processing report from PMMI, The Association for Packaging and Processing Technologies. As a result, more craft brewers and distillers are considering automating manual processes, especially depalletizing, case packing, and palletizing, and studying how their operation could benefit from the installation of automated guided vehicles, industrial robots, collaborative robots, and mobile robots, now increasingly supported by artificial intelligence and advanced vision capabilities.

Embracing Sustainability

  Sustainability remains a major focus for consumers and regulatory agencies with the goal of reducing landfilled waste, minimizing plastic usage, particularly in single-use applications, and establishing a circular economy. As a result, renewable materials like paper are receiving considerable attention.

  Once unheard of, paper bottles are making their way into the marketplace. Distillery 98 of Santa Rosa Beach, Fla., has adopted a modernized bag-in-box concept for its Half Shell Vodka. The package features a metallized polyethylene terephthalate pouch inserted in a creased paperboard blank, which has been molded into a bottle shape. The recyclable package supports circularity as it contains 94% recycled paperboard and cuts carbon emissions by a factor of six versus a traditional glass bottle. Preprinting the blank eliminates the need for a separate label. “We hope that our commitment to Half Shell’s transformative bottle persuades more companies to embrace environmentally friendly packaging,” says Distillery 98 co-owner Harrison Holditch. (1)

  A streamlined recycling process is the goal behind installation of a drainage press at Saint Arnold Brewing, the first craft brewer in Houston, Texas. The machine makes it possible to quickly prepare filled reject cans for recycling, reduces the number of cans awaiting recycling, eliminates the need to pay another company to prepare the reject cans for recycling, generates income, and is expected to have a quick return on investment. The craft brewer also reuses its printed paperboard six-pack carriers. A Recycle Rewards program gives consumers incentives to return the carriers. Reuse reduces waste as well as packaging costs. (2)

  Taking a different approach to multipack unitizing, Flying Tiger Brewery in Monroe, Louisiana, has adopted compostable four-pack rings for its Doux Drop wheat ale. Made from wheat and barley, the biodegradable rings can be eaten by wildlife, according to nola.com. The transition coincides with the company’s pledge to donate 5% of Doux Drop ale sales to the Louisiana Wildlife and Fisheries Foundation. (3)

  Four Peaks Brewing, an AB InBev craft brewer partner located in Arizona, is one of the first brands to add a recycling QR code across its entire product line. Part of a graphic redesign for the Four Peaks portfolio, the code helps consumers quickly determine where and how to recycle the packaging and is expected to boost recycling rates, divert 3.5 million pounds of material from landfills, and offset more than 5.1 million pounds of carbon dioxide equivalent emissions. (4)

  The latest brand-building, automation, and sustainability solutions will be on display at PACK EXPO International (Nov. 3–6, 2024, McCormick Place, Chicago). The new Sustainability Central will serve as an interactive destination with resources to help brands become more sustainable. The PACK EXPO Green program identifies exhibitors that provide technology such as sustainable processes and machines, renewable and biodegradable packaging, source reduction and lightweighting, recyclable and recycled-content materials, or innovations that reduce carbon footprint. Attendees also can identify resources via the PACK EXPO Sustainability Solutions Finder.

  As the world’s most expansive packaging and processing industry event in 2024, PACK EXPO International will feature 2,500 exhibitors offering solutions to many of today’s biggest manufacturing needs from an intersection of industries in 40-plus vertical markets. More than 45,000 attendees from CPG and life sciences companies worldwide will converge, searching for innovation, connection, and insight. For more information and to register, visit packexpointernational.com.

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1) Distillery 98. Launch of Hyper-Sustainable Half Shell Vodka Bolsters Florida’s Distillery 98 Spirits Portfolio, News Release, Feb. 14, 2023.

2) Hand, Aaron, Texas’s Oldest Craft Brewer Finds New Ways to Manage Aluminum Can Waste, ProFood World, Nov. 17, 2023.

3) Riley, Sean. Edible Beer Packaging from Eco-Friendly Beer Ingredients, Packaging World, Oct. 19, 2023. 

4) Flanagan, Casey. AB InBev’s Four Peaks Takes the Guesswork Out of Recycling, Packaging World, May 6, 2024.

Trends Shaking Up the Beverage Market  

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2 men and 2 women at a table in front of a laptop computer and smiling

By: Hanifa Sekandi

Trend fatigue is a real thing. Every year, it is something new. When you think your brand has captured the market with savvy marketing strategies, there is another plot twist. Everyone loves a plot twist in a movie, but not when it comes to modern marketing. It truly is a game of chess. There are many wins and many losses. Marketing teams need to have tough skin and a positive mindset. The long game in beverage marketing requires resilience. Also, a loss does not mean that your brand is failing. It means you must focus on marketing strategies that truly resonate with your audience. Every marketing campaign should include previous successful strategies that, time after time, have proven to be fruitful for your brand.

  As the CEO of a beverage brand, you need to ask your marketing team why they are not developing unique trends. Marketing campaigns that set in motion viral moments lead to other brands following suit and borrowing elements from your brand. Aside from being touted as the beverage of choice, being an industry gatekeeper elevates you to an elite league. And positions you with not just beverage brands but also other consumer goods brands. It also leads to opportunities for collaboration.

  When looking to jump on a trend, gravitate towards timeless ones if your budget is small. Hopping onto a viral trend works if your budget allows room for play, A.K.A. trial and error, rolling the dice. Some brands do not desire to be all things for everyone. Some brands are happy with their audience and consistent revenue. Many beverage brands in this category avoid trends and do not look for viral moments. For new brands, the pressure to surf the trend wave is overwhelming. Do you have a choice? Can you build your audience organically? If so, how? There are a few cost-effective methods to elevate your brand presence.

Here are two timeless trends:

Brand Collaborations

  Does your beverage remind you of extreme sport or a NASCAR race? If your beverage were a clothing brand, who would it be? Imagine your consumer. Where do they shop? What kind of activities do they find enjoyable? Is it fishing? Or golfing? Like beverage brands, consumer goods brands seek ways to reach their audience. An example of a unique brand collaboration was between Fender and Bixton clothing apparel. Fender needed to reach their audience through clothing buying preferences, and Brixton desired to be an apparel brand that musicians gravitate toward.  

  The Croc and Pop-Tarts collaboration is a fitting example of how to market two brands together. Both brands can reach their audience and attract new consumers from brand collaborations. This was a limited edition launch during the summer. When people purchased a pair of Crocs Classic Clogs, they would receive a box of Pop-Tarts and edible crocodile-shaped Jibbitz candies. This promotion ran for only three days, and a limited amount was available for purchase. Those who wanted to purchase this limited edition had to sign up at a microsite designed exclusively for this collaboration. Overall, this was a great marketing strategy to improve brand awareness. Having a sign-up form also allowed both brands to gain new subscribers to their newsletters. 

  Heineken, in 2017, partnered with BAPE clothing. For this collaboration, sweatshirts, backpacks, accessories, jackets and T-shirts were designed to combine BAPE and Heineken branding. These custom-designed items were only available at BAPE stores. The subliminal marketing in this effortless campaign strategy is notable. This is an out-of-home marketing strategy that illuminates the influence that clothing has on consumer choices and the beverages they purchase. Heineken as a beverage of choice when ordering a beer at the local bar after a visit to a BAPE store is a likely occurrence. Everywhere people go, they are influenced by the advertisements they see. Did you want pizza because you truly desired it, or is it National Pizza Day, and you keep seeing social media posts of the best pizza places?

  So how do you get started? How can you dream up a savvy brand collaboration? Research. Spend time understanding the behavior of your desired audience. Look at the brands they lean towards. Find out if the brands you have in mind have done brand collaborations before. Do not approach the marketing director of the brand you have in mind without a plan. You need to pitch ideas and why both brands would benefit from this collaboration. Set the stage for brainstorming ideas and opening the conversation. If you are lucky, they may see this as the perfect pairing. In some cases, you may need to present a marketing plan that allows them to visualize what this collaboration would look like. In addition, highlight the benefits for both brands if this collaboration occurs. 

  Should you only approach big, popular brands? No. Both BAPE and Brixton are niche brands. They target a specific consumer base. The sky is the limit with brand collaborations. Crocs also collaborated with KFC. With brand collaborations, you can do several in a year. Supreme clothing and Oreo collaboration is another notable think-outside-the-box marketing strategy. The food your consumer loves in the color of the clothing brand they cannot get enough of. Is your top-shelf tequila or ale the next limited-edition ice cream flavor? 

A Little Bit of Everything  

  Who doesn’t love a good Caesar salad? When the craving hits, you want to make your own. But you do not want to purchase every ingredient individually. Reaching for the pre-made salad mix is ideal. Consumers like it when brands offer them what they need without the hassle. Take the guesswork out of the process. If you sell cases of your beverage, consider including mixers or other drinks that pair well with your beverage. Multi-packs are quite popular, but consider making yours functional. Moreover, each beverage pairs well together.

  Consider something that has not been done yet, but maybe you will be the first. If your brand offers non-alcoholic beverages, split the pack in half to contain an alcoholic and a non-alcoholic option. Conscious beverage consumption is on the rise. This gives the buyer the option to have one or both. But for those who choose to drink less or attend a gathering with friends and do not drink, this takes the guesswork out for them. It is also very convenient.

  A little bit of everything also includes a signature fizzy flavored water that combines clean ingredients. This should be sold along with your beverage. Ensure that all the items are packaged or placed together in-store. Create promotional material that can displayed in-store that highlights your unique offerings. These campaigns can run along with recipes that a master mixologist has crafted for your brand. It also allows you to do a call-to-action where people can show you how they created cocktails from the limited edition offering. Take all the guesswork out for this limited-run campaign.

  An end cap is quite effective for this strategy. It saves the store trouble and gives you control over how you display this promotion. The beauty of this strategy is that you will introduce your existing consumers to a beverage from your product line that they have never tried. 

Two Trends for Success

  Each year, pick two timeless trends to implement. If previous trends are still serving you well, continue to utilize them, but be sure to add unique nuances so that they are familiar but different. Both brand collaborations and showcasing several products together are timeless trends that can be used all year. A little bit of everything works well in the summer and during the holiday season. Brand collaborations can occur every few months. Throw your net out wide to see how far you can go with each brand collaboration. Consumer brands are collaborating with famous bakeries. For example, Lakes Brew Co. collaborated with Ginger Bakers to make a Chocolate & Stout Loaf Cake with Lake Brew Co. Breaking Origin Imperial Stout. 

  Collaborations are not just limited to brands. Influencer and celebrity collaborations with limited-edition products perform quite well. This approach requires due diligence. Remember your brand ethos, what your brand represents and the desired goal. Partnering with a popular chef from a popular show could be fruitful. If you try this form of collaboration, do not assume you must collaborate with a popular influencer or celebrity. Your goal is to target your audience. Niche influencers and celebrities are also a smart choice. It also helps you narrow down your audience. Brand collaborations can have many angles. If you are bold, you can combine both trends: a little bit of everything and a brand collaboration. Both trends give you room to devise a marketing campaign that can help you become a noteworthy beverage brand. 

Pamos Cannabis Spirits & Cocktails

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Alternative Choices with Familiar Culture

3 cans of pamos beverage on rocks on a beach near the ocean

By: Gerald Dlubala

It was in early 2021 that David Mukpo, CEO of Pamos Cannabis Cocktails and Spirits, opened a cannabis dispensary. But that wasn’t his end game. His dispensary was successful, but he wanted to provide cannabis users an alternative to the limitations of either smoking cannabis or using edibles as the delivery method. Many consumers don’t want to have to smoke to use cannabis, and others may not want to wait for the lengthy amount of time that gummies take to have any effect.

  The successful dispensary became a pathway for Mukpo to create, get approval for and get widespread distribution for his Pamos cannabis and hemp-derived THC-infused spirits and cocktails. In October 2023, the hemp side of the business became a reality by launching in true traditional liquor retail and distribution fashion. Pamos appeals to the largest market possible by merging the familiar culture of conventional cocktails and spirits served in a bottle, can or glass with the option for an alcohol alternative with none of the traditional debilitating side effects.

  “At our core, we never set out to compete with cannabis,” said Mukpo. “Our entire project was, and is, designed as a new adult beverage category, positioned as an alternative to current alcohol consumption. But when we first launched, the only real pathway to do that was through the regulated marijuana industry, made legal by state-level programs. Dispensary products, however, lean towards high dose, low cost, flower and edibles forms. We had quite a lot of success there in California, Nevada and Arizona, but to an extent, it was fighting with one hand tied behind our back. At its core, beverages are not dispensary products. What changed that was the ability to use hemp. The 2018 Farm Bill made hemp federally legal as long as the concentration of THC is under three percent by dry weight. And to make a long story short, all of our products and products like ours have a concentration of physical substance of well under that. So, our products and plans went through the court system and state legislators and were ultimately deemed federally legal. That ruling drastically changed the way we were able to go to market. We now could use traditional distribution methods, and as a result are distributed by some of the biggest beer distributors to the largest liquor retailers in the country.”

Creating a Cocktail Experience with Compliant and Ethically-Sourced Cannabis

  Mukpo tells Beverage Master Magazine that their hemp-derived THC distillate is emulsified and broken down into small, water-soluble particles. After that, the manufacturing process is similar to that of traditional nonalcoholic beverages.

  “Our entire flavor profile from our spirit standpoint is designed to mimic alcohol,” said Mukpo. “One of the hardest things to do is create a nonalcoholic spirit that has the comparable taste and mindset that its alcohol-based counterpart would deliver. We use bitters for flavor and aroma and to create that cocktail reminiscence. Still, a lot of that mindset comes down to delivering that familiar flavor in a traditional form factor like a glass or can the consumer can hold. We’ve become Texas’s second-largest-selling non-alcohol beverage in just a few months of sales. In our success, we’re meeting an industry trend of consumers wanting a cocktail experience without the effects of the alcohol.”

  Mukpo said that Pamos only sources ingredients and uses copackers with principles based on ethical and compliant origins.

  “We are sold nationwide, so we have to know the workings of the farms and key partners we use,” he said. “We know how the ingredients are grown and understand the methods of production to maintain quality and safety. Any time Pamos puts THC into a beverage, we know where that plant came out of the ground. We track our chain of custody from seed to sale to ensure we use only compliant, ethically raised and produced hemp.”

The Pamos Experience Is Familiar, but New

  “Pamos was built on getting consumers to use our cannabis-infused products through the use of a familiar form factor, namely a glass or can in their hand,” said Mukpo. “The amount of liquids in cans sold in our country is staggering, so we thought that if we approached consumers with a familiar form factor, we’d have a stronger capability of gaining acceptance. Canned beverages are more digestible as a product and more acceptable in certain areas, situations or venues. Everyone knows what it’s like to socialize with a beverage in hand, so again, we’re shaping the industry into something that the consumer already understands and can feel.”

  Consumers can expect to feel the effects of the balanced blend of CBD and THC-infused cocktails in as little as 10 to 15 minutes. Depending on the dosage ingested, the effects last about an hour or two. Mukpo said that his cocktails and spirits provide a lighter, milligram-adjustable social buzz than typical alcohol cocktails without the side effects of alcohol on the body, including hangovers.

  While Pamos doesn’t have the traditional tasting rooms like many craft beverage producers, they focus on providing consumers the opportunity to experience their products in the same environments where alcohol is typically consumed. Sold across the country, Pamos Cannabis Cocktails and Spirits are widely available in bars, restaurants, hotels, live sporting venues and more. While there are trace amounts of alcohol from the use of bitters (ABV of 0.1 percent), Pamos contains less alcohol than an average bottle of kombucha.

  “Additionally, our beverages are vegan and made with natural, non-GMO, gluten-free ingredients, perfect for those with dietary restrictions,” said Mukpo. “Everything we do from a flavor standpoint is derived from natural flavors. We don’t currently use barrels or storage vessels to add flavor, but we’re not ruling that out in the future. Pamos is sold in ready-to-drink (RTD) canned cocktails and bottles as a spirit base. Our canned cocktails include a mai-tai, tropical mai-tai, peach and guava bellini, raspberry Long Island iced tea and more on the way. We’re looking at launching three new cocktail expressions in the next 60 days. Consumers can use our bottled spirits like they use alcoholic spirits now, creating their own cocktails at home. We’ve been pleasantly surprised with our sales mix because we expected the bottled spirits to be a smaller part of our portfolio, but it’s been almost a 50/50 split in bottled spirits and RTD sales across the country.”

Marketing Means Education

  Pamos boasts an extensive customer base with demographics across the board.

“In our early days, the strongest market was older consumers who wanted to cut down their alcohol consumption as it gets harder on their body,” said Mukpo. “Since then, we’ve transitioned to a point where our strongest demographic is now 21 to 35-year-old women. To be honest, I think we were all taken by surprise at how quickly Pamos was picked up by consumers looking for a new option, but it leans on the fact that there were probably quite a few people across the country already consuming cannabis regularly. And even though the dispensaries have absolutely helped expand the audience and normalize cannabis use, the driving factor in our success is meeting consumer demand for an adult beverage option.”

  Mukpo said there will always be those who don’t like that products like these are available, but they’ve been very much in the minority. The early resistance was less than they anticipated, and the resistance that was there was more on the business-to-business side. “We had to be educators with our business-to-business clients simply because they were unsure if they could even sell it,” said Mukpo. “But once we educated and informed them of our legality and federally approved status, the retailers saw the data and realized this was an exciting and new opportunity for them. On the consumer side, it’s about educating them on the fact that it is entirely legal and then presenting a new product to them in a familiar form factor: a can or glass to hold in their hand.”

  Pamos’ products are distributed in different-colored packaging corresponding to the dosage strength used in that particular drink or spirit. They are available in a range of dosages, starting at two milligrams of THC and CBD per serving, comparable to a glass of wine.

  “We view ourselves as educators first and foremost,” said Mukpo. “Competition is not our primary concern. Properly educating the consumer is. It’s a really easy solution, but we take it very seriously. We suggest everyone start at the minimum dosage and build to their tolerances and what they want from our product. Similar to the way you drink alcohol, we encourage you to have a drink and see how you feel. That experience determines if you can or want to have more.”

Growing Distribution and Key Partnerships Are Primary Goals

  “Our volume will continue to grow because it’s already doing so,” said Mukpo. “We’re filling orders for truckloads rather than the initial orders of pallets or cases. It’s all about growing distribution capacity and increasing availability. We have a strong presence developing in the southeast and Texas, and we want to continue to expand with properly scaled distribution partners. Our goals are less about specific target numbers and more about ensuring the distribution network we’re building is best in class. We’re proud of our partners and those we’re developing, and that’s something we look forward to continuing to do. For now, our time and resources are best spent educating our consumers and distribution partners. As we continue to scale upwards, we’re open to expanding our lines and offerings, and if the economics make it worthwhile, maybe one day look to bring canning and other aspects in-house. We may even look into storefronts as a way to provide consumers alternative ways of consumption.”

Go in with an Open Mind and Build from the Ground Up

  Mukpo said that opening a dispensary made him aware of how important it is to dedicate resources to educate everyone, from in-house staff to end users. Gaining that education on what the product is, how to use it properly and what to expect builds the ability to educate curious, uninformed or misinformed consumers.

  “If you want to get into this business or any craft beverage business, you have to have an unwavering passion, of course, but you have to realize that getting liquid into a can is the easy part,” said Mukpo. “You better be ready to continue your education and be comfortable enough to step into an educator role as needed. As entrepreneurs, we are generally comfortable jumping into the unknown. But you have to go into this industry with an open mind and be ready for a new challenge every day. That may be intimidating, but it’s also very rewarding. I mean, how many times in life do you get the opportunity to build an industry from the ground up? It’s exciting to be a part of.”

  For more information on Pamos products, their cannabis cocktail club or to order spirits and cocktails, visit: https://www.pamos.com

  Note from the Publisher:  Check individual state laws regarding the purchase and distribution of this product as it may be prohibited due to its ingredients. Bricker Publishing does not endorse or promote the use or purchase of this product. This article was published solely for informational purposes.