Category: Distillery

The Basics of Nitrogen and CO2 Use in Breweries & Distilleries

Cyndi
bartender mixing alcohol

By: Alyssa L. Ochs

For many years, carbon dioxide has been used in brewing and distilling processes. Recently, some producers have switched from CO2 to nitrogen or use both CO2 and nitrogen because each has unique advantages. To help make the right choice for your operations, here are a few things to think about regarding the use of carbon dioxide and nitrogen for craft beverages.

Using CO2 in Breweries & Distilleries

  For brewing and distilling, beverage producers use CO2 to remove air and protect the product from oxidation. This ensures good taste, mouthfeel, quality and shelf stability. CO2 can be pumped into kegs and kept at pressure to carbonate beer and give it a foamy texture. CO2 is often transported as a cryogenic liquid, which requires trailers and railcars for transportation.

  Ken Hoffman, vice president of sales for Allcryo, Inc., told Beverage Master Magazine that the first factors his company considers for CO2 tanks are tank size and monthly use volumes. He also said to consider the proximity of the use site to the supply source. Based in Montgomery, Texas, Allcryo manufactures, refurbishes and services cryogenic tanks, CO2 tanks and related equipment.

  “With a refrigerated CO2 tank, you can have more storage than you might need because there is no loss of product,” Hoffman said. “It is important not to have an undersized tank, as the expense of additional delivery charges and the threat of run-outs is far more expensive than the savings of buying a smaller tank. It is also important to size for future growth.”

Using Nitrogen in Breweries & Distilleries

  Nitrogen serves some of the same purposes as CO2 in craft beverage production, such as protecting against oxygenation, extending shelf life and improving taste and aroma. Nitrogen is used in pressurized containers and can be incorporated before or after filling and before capping and seaming. For small breweries, nitrogen often comes in liquid form from gas distributors. For larger nitrogen needs, it can be transferred from a supply tank using vacuum-insulated piping.

  Vacuum Barrier Corporation is a cryogenic engineering company that manufactures vacuum jacketed piping and equipment for use in multiple industries, including breweries and distilleries.

  “Our Semiflex and Cobraflex vacuum jacketed piping are used to safely and efficiently transfer cryogenic liquid nitrogen. Our Nitrodoser systems are used for inerting or pressurizing containers and for nitrogenating beer and coffee,” Dana P. Muse, the international technical sales engineer for Vacuum Barrier Corporation, told Beverage Master Magazine.

  Allcryo also offers systems for liquid nitrogen, and Hoffman said that the primary application of their products is to strengthen thin-walled plastic bottles and aluminum cans.

Equipment Needed for CO2 and Nitrogen

  Specialized equipment is needed to facilitate the use of both CO2 and nitrogen in beer or spirits production.

  “The Vacuum Barrier Nitrodoser system drops a single dose of liquid nitrogen into the top of the container just before the cap or lid is applied,” Muse said. “The drop of liquid nitrogen is trapped inside the container, and as it evaporates and warms up, it expands, pressurizing the container.”

  Muse said that for pure spirits, a plastic bottle could benefit from some internal pressure to reduce jams on the filling line, improve stacking strength, improve storage efficiency and improve the product appearance.

  “We have also seen an increase in the market for pre-mixed cocktails in aluminum cans,” he said. “Carbonated cocktails, like a Cuba Libre or Moscow Mule, already have internal pressure created by the CO2. However, still cocktails, like a margarita or a screwdriver, in an aluminum can are extremely flimsy and easily crushed without internal pressure created by liquid nitrogen.”

  For breweries, liquid nitrogen has two different applications. On a canning line or a bottling line without a pre-evacuation system, a drop of liquid nitrogen into the empty container purges out oxygen and creates an inert atmosphere. This helps reduce the amount of dissolved oxygen in the beer to improve the shelf life. Liquid nitrogen is also used for nitrogenated beers in single-serve containers.

  “A drop of liquid nitrogen in the headspace will pressurize the container, and under the right conditions, the nitrogen will dissolve into the beer over time,” Muse said. “When the container is opened, the nitrogen will come out of solution and create the cascading bubbles and creamy foam that customers expect. However, in order to get the nitrogen to come out of solution quickly, either the container needs to have a ‘widget,’ or the consumer needs to be aware of how to ‘hard-pour’ the beverage. Without a widget or a hard pour, the nitrogen will not create the cascade or foam, and the beer will be flat.”

Tanks for CO2 and Nitrogen

  Breweries and distilleries can buy a new or refurbished foam insulated tank for their equipment. Allcryo’s refurbished tanks are a cost-effective solution that performs as well as new tanks because the refurbishment process comes with a warranty and includes all-new, two-part poly-foam insulation, paint, pipes and safety valves.

  “Typical cost savings on a refurbished tank over a new tank is between 20% and 30%,” said Hoffman. “If purchasing a new, refurbished or used vacuum jacketed tank, it is extremely important that the vacuum is sound and the tank is complete with refrigeration coils that afford the opportunity to add refrigeration if the vacuum becomes compromised. The coils are necessary to allow pressure control and avoid the possibility of high pressure and venting of CO2.”

  Both the foam insulated and vacuum jacketed tanks are offered by Allcryo and work well under most conditions, with the significant differences being cost, application and the installation site.

  “A vacuum jacketed tank does not require electricity, but the ability to control pressure in the tank is limited without an inner coil,” Hoffman said. “With a foam insulted tank, the refrigeration loop maintains the liquid CO2 in a constant pressure range. The system is set to automatically kick on when necessary, and the balance of the time is not running.”

  Concerning installation, Hoffman said that most vacuum jacketed tanks are vertical and require a substantial foundation. However, a horizontal tank might be more affordable if there is enough space available. 

Pros & Cons of CO2 and Nitrogen

  CO2 is the industry standard, which means that it is readily available and well-tested for craft beverage purposes. However, CO2 can be challenging and expensive to transport. Also, recent shortages of CO2 have slowed production for some beverage producers.

  Nitrogen offers a unique mouthfeel and smoothness because it is less soluble than CO2. Yet, it is not beneficial for hop-forward beers that are meant to have a bite to them rather than a creamy consistency. Nitrogen can be used for various applications, including cleaning, pressurizing and inerting. These applications make it a practical choice and cost-efficient since it is often cheaper than CO2, especially with onsite nitrogen generation. With onsite generation, a producer can be more efficient without waiting for a supplier’s delivery or wasting gas. It may also be a way to reduce the company’s carbon footprint since nitrogen releases fewer greenhouse gas emissions.

  Some beverage producers are using CO2 and nitrogen blends to meet their needs. However, no other substitutes have proven effective for these purposes at a cost-effective rate.

Safety Considerations for CO2 and Nitrogen

  Working with CO2 or nitrogen in any capacity can be dangerous without the proper training and safety protocols in place. Gas can collect at the bottom of tanks and spill out onto the floor to create hazards. Production facilities should have a gas detection system to alert workers to dangers or automatically activate ventilation systems. Preventative maintenance should include testing tanks for residue buildup and ensuring that gas supply lines do not have condensation or standing liquid inside. In-line filtration can be used to scrub away undesirable chemicals and moisture that collects during the production process.

  “Most people understand liquid nitrogen is cold enough to cause frostbite and cold burns if it directly contacts the skin,” Muse said. “Cryogenic gloves and face shields should be used anytime there is a risk of direct exposure to the liquid nitrogen.”

  Liquid nitrogen should only be used in a well-ventilated area, where it may be necessary to install oxygen monitors. Also, nitrogen expands to 700 times its original volume when it changes from a liquid to a gas.

  “We use this expansion to pressurize or purge out oxygen from containers, but if there is a nitrogen leak, it could eventually push all the air and oxygen out of an entire room,” Muse said. “If someone enters an area without enough oxygen, it can cause asphyxiation and death. Proper ventilation and oxygen monitors help minimize this risk.”

  Vacuum Barrier provides pressure relief valves at critical locations to eliminate the risk of over-pressurizing and prevent explosions. If too much liquid nitrogen becomes trapped inside a sealed volume, the expansion from liquid to gas could create enough pressure to explode. Relief valves must be set at the correct pressure, so if they must open, the gas escapes in an area away from people.

  “Vacuum Barrier works with each of our customers to ensure that any personnel working with or near our equipment will have the correct training for proper and safe handling of liquid nitrogen,” Muse said.

  “To help mitigate the risk of asphyxiation, it is very important to monitor the atmosphere in process areas to ensure that OSHA-mandated oxygen levels are maintained,” Hoffman from Allcryo said. He also suggested producers install alarm systems to constantly monitor the atmosphere and warn of dangerously low oxygen content.

  Both liquid CO2 and liquid nitrogen are stored at very low temperatures and can cause injury if not handled properly. “Allcryo can work with site safety personnel and assist in the design and installation of safety systems,” Hoffman said. “Allcryo can also provide input on foundation design to meet seismic and wind load requirements of the specific location and provide guidance on NFPA-adjacent exposure requirements, such as proximity to overhead electrical wires, sewer drains and vehicular traffic.”b

Expert Advice Goes a Long Way

  CO2 and nitrogen can be great choices for a brewery or distillery, depending on its specific needs and production level. When making this decision, make sure to communicate your needs and goals with your supplier to assess the risks and maintain top quality.

  Muse from Vacuum Barrier said that for anyone considering using liquid nitrogen for any reason, the most important thing to do is speak with an expert.

  “Certainly, talking with coworkers and associates in the industry who have experience with liquid nitrogen might provide some basic information, but they might also pass along some bad habits or incorrect assumptions,” Muse said. “Many people get frustrated when first trying to use liquid nitrogen and jump to the conclusion that it doesn’t work when in reality, they might just be using it incorrectly. Not only is this a waste of time and effort, but if not handled properly, there is a risk of injury.”

Craft Gluten-Free Beers and Spirits That Will Win Fans for All Occasions

Cyndi
gluten free signage

By: Laura K. Allred, Ph.D., Regulatory Manager, Gluten Intolerance Group and Jeanne Reid, Marketing Manager, Gluten Intolerance Group

The desire to gather over good food and drink is a powerful urge for most people. For those who have adopted a gluten-free diet, finding ways to socialize is often complicated by the need for refreshments that don’t contain gluten. Members of the gluten-free community crave a sense of belonging and normalcy as much as anybody, but they don’t want to eat or drink anything that will make them sick. Makers of gluten-free craft beers and spirits can instill trust in consumers by following best practices for manufacturing gluten-free beverages, heeding recent changes in labeling requirements, and ensuring that their product is truly gluten-free.

The Gluten-Free Market for Alcoholic Beverages

  Along with the rest of the gluten-free market, which exhibits a compound annual growth rate of 9.2% and is projected to reach $43 billion by 2027, demand for alcoholic beverages that are gluten-free is growing. The growth in the gluten-free market is driven by rising rates of various forms of gluten sensitivity, in addition to increased diagnosis of celiac disease.

  While the market for gluten-free alcohol is comparable to that of other gluten-free products, consumers are particularly concerned about the safety of alcoholic beverages because so many of them are made from grains that contain gluten. Gluten-free consumers tend to be avid researchers who carefully read ingredient lists and doublecheck claims by visiting manufacturers’ websites. Given the choice, gluten-free consumers will always opt for products that are labeled gluten-free. What’s more, they’re often willing to pay more for a product that lives up to its gluten-free name.

Recent Rule Changes for Fermented and Distilled Beverages

  For people with celiac disease and other forms of gluten sensitivity, finding gluten-free products isn’t a dietary or wellness fad; it’s a requirement for remaining healthy and avoiding unpleasant physical symptoms. Brands getting into the gluten-free market need to understand that consumers with a medically prescribed diet will have more demands than the average consumer, and thus companies also need to go the extra mile to be transparent about their processes. You can reassure consumers by demonstrating you understand legal requirements for labeling gluten-free products, particularly recent rule changes by the Food and Drug Administration (FDA) and the Alcohol and Tobacco Tax and Trade Bureau (TTB).

  In 2020, the FDA responded to growing awareness that ELISA tests used to identify gluten proteins in foods and beverages don’t reliably detect residual gluten in fermented products. To address the issue, the FDA passed a new rule that requires manufacturers to start with gluten-free ingredients if they want to label products as gluten-free. At the same time, the FDA ruled that distilled products made from grains containing gluten could be labeled as gluten-free because distillation removes gluten proteins from the finished product. Following the lead of the FDA, the TTB released a ruling that allows makers of distilled beverages to advertise and label those products as gluten-free—even if they are made with grains that contain gluten.

Fermentation vs. Distillation What’s Involved?

  To understand the rationale behind the FDA and TTB rulings, makers of craft beers and spirits need to be aware of the differences between fermentation and distillation. Typically, production of alcoholic beverages starts with fermentation. The fermentation process converts sugars into ethyl alcohol by breaking down substances like grain or potatoes through the introduction of yeasts, bacteria or other microorganisms. Beer usually starts with the fermentation of wheat or barley, two gluten-containing grains. Distilled spirits like whisky start with wheat or rye, while vodka can also be made with sugar cane or potatoes. Fermentation processes may break down some of the gluten proteins in beer or spirits, but it won’t remove all of them.

  Distillation involves the boiling and condensation of fermented products to separate particulates in a liquid. During the distillation process, fermented liquid is heated up in a still. Under high temperatures, the most volatile compounds like alcohol become gases that rise to the top, while the heavier, less volatile  compounds, including gluten, sink to the bottom. Once the alcohol is re-condensed and collected, the resulting product becomes protein- and gluten-free.

The Benefits of Third-Party Certification

  The safest bet for gluten-free consumers is to look for products that are labeled or certified as gluten-free. The benefits of certifying alcoholic beverages as gluten-free are many. According to FMI U.S. Grocery Shopper Trends, 29% of all shoppers look for certification claims on packaging for food and beverages—and this is particularly true for gluten-free consumers. These consumers look for brands that inspire confidence, which means that in addition to labeling products gluten-free, taking the step to get third-party certification, like that of the Gluten Intolerance Group’s Gluten-Free Certification Organization (GFCO), goes a long way in building brand loyalty among the gluten-free community.

  For one leading producer of vodka, obtaining GFCO certification and prominently displaying the certification logo on a paper sleeve attached to their bottles has made their product the vodka of choice for gluten-free consumers, who are very brand loyal. For manufacturers, certifying alcoholic beverages can be a real differentiator and selling point in a booming market.

Best Practices for Producing Gluten-Free Beer and Spirits

  Producers of craft beers and spirits can capitalize on demand for gluten-free products, but it’s important for companies to follow the correct procedures for manufacturing these beverages. The process of producing gluten-free alcoholic beverages starts with sourcing gluten-free ingredients for products that are fermented but not distilled and ensuring that all gluten has been removed from products that are distilled. Manufacturers should also make sure their facilities are set up to avoid cross-contamination. One option is to produce alcohol in a dedicated gluten-free facility. While only 15 of the 8,000 breweries in the US are dedicated gluten-free facilities, this number has grown from just around three in 2016.

  However, using a dedicated facility to produce gluten-free beverages isn’t your only option. Provided you follow best practices for preventing cross-contamination, there is no reason you can’t produce gluten-free products in a non-dedicated facility. You will need to take extra precautions by cleaning and testing any shared equipment, and some certifications, like GFCO, recommend using dedicated gluten-free equipment on production lines, simply because the equipment used to distill alcohol can be difficult to take apart and clean thoroughly. On the other hand, if you’re doing small batch production and you can get inside your equipment to clean and swab it, you can use shared equipment. You just need to verify that you’ve removed all traces of gluten before you make your next gluten-free batch.

  As far as cleaning solutions go, you don’t need to spend top dollar on any specialty products. Standard soap and water will do. The important part of the process is swabbing to test for the presence of gluten or protein once you’ve cleaned your equipment. To demonstrate the effectiveness of your distillation process at removing proteins, GFCO recommends performing a lab procedure called an “amino acid analysis” that uses mass spectrometry to measure the amount of residual amino acids in distillates. A commercial lab can assist with the testing process, particularly for smaller distilleries that don’t have the equipment to conduct independent testing.

Things to Look Out for When Producing Gluten-Free Alcohol

  If you are not making a distilled product—if you are, say, brewing beer—you should start with higher quality grains and do a visual inspection once they enter your facility to ensure they really are gluten-free. You should also beware of advertising “gluten-removed” beer to gluten-free consumers. Gluten-removed beer is manufactured using wheat, rye, barley or some other common gluten grain, and then, after fermentation, is typically treated enzymatically in a way that makes the product test negative for gluten. However, because testing does not reliably detect the presence of all residual proteins that people with celiac disease react to, the TTB has ruled that only beer that starts with gluten-free grains can be labeled as gluten-free. If you want to produce a gluten-free product, another option is hard seltzer. Although many of these products start with malt, which is most commonly made from barley, hard seltzer can also be produced using sugar to create an inherently gluten-free product.

  Distillers of hard alcohol should also pay careful attention to any added flavorings: some of these ingredients include gluten and thus introduce the potential for cross-contamination. Manufacturers should also take care when using old barrels to season alcohol, because some of these barrels are sealed with wheat paste and may contain trace amounts of gluten.

  As the gluten-free market continues to grow, more consumers are seeking options for gluten-free alcoholic beverages and many are willing to pay a premium for products they know they can trust. Starting with quality ingredients, adopting best practices for cleaning and testing your equipment and obtaining third-party certification, like GFCO, are three ways you can assure consumers that your gluten-free product is safe for consumption. Take the right steps, and your gluten-free alcoholic beers and spirits can become the next must-have brand for any occasion.

  Laura K. Allred, Ph.D. is the regulatory manager for the Gluten Intolerance Group’s Gluten-Free Certification Organization (GFCO). Allred’s experience includes a background in immunology and eight years of directing a food testing laboratory and test kit manufacturing operation. The GFCO certification logo is the symbol of trust for the gluten-free community, with more than 60,000 products certified worldwide.

  Jeanne Reid is the marketing manager for the nonprofit Gluten Intolerance Group. Reid is a marketing and advertising professional with 20 years in the retail, restaurant, and CPG industries as well as cause-related efforts. A difficult family battle with celiac disease was an eye-opener for Reid and provided an opportunity for her to gain extensive knowledge and expertise on the gluten-free market.

For more information, visit…www.gluten.org and www.gfco.org

The Best Approaches for Safety in the Brewery and Distillery

Cyndi
man overseeing facility

By: Alyssa L. Ochs

As a craft brewer or distiller, it’s easy to get caught up in the day-to-day operations of the beverage production process. After all, from securing supplies to marketing products and everything in between, there’s a lot to keep in order.

  Among the many competing demands, safety sometimes gets taken for granted or overlooked. However, it’s essential to always keep safety on the radar and on the minds of staff. Beverage producers can benefit from a little refresher on safety to protect their valuable workers while also maximizing efficiency and productivity.

Safety Hazards in Breweries & Distilleries

  Because of everything involved in the brewing and distilling processes, many things can go very right or very wrong depending on how operations are run. Various hazards exist in a beverage production facility that workers need to be aware of and trained to address.

  Injuries can occur due to lifting, pushing and carrying equipment or because of falls on slippery floors. Working at tall heights and on ladders can cause injuries, while clutter left behind on floors and in confined spaces can cause tripping. Carbon dioxide gas, boiling liquids, steam, hot surfaces and not being properly trained to use machinery pose hazards. Other causes for concern are flammable chemicals, broken glass and grain dust exposure. Meanwhile, repetitive movements without good ergonomic tools can put employees at risk, and high noise levels can cause ear damage.

  “All semi-finished and finished products are flammable, so proper engineering and procedural controls must be designed, installed and tested, and all staff trained on these controls and procedures,” said Rich Buoni, founding owner of Pennsylvania Distilling Company in Malvern, Pennsylvania. Pennsylvania Distilling is a small distillery that produces grain-to-glass vodka, whiskey, rum and gin. Its location offers tasting flights, artisan cocktails, tours and bottle sales in a relaxed environment.

  “As a chemical engineer with significant global experience, it is my opinion that distillery stills should never be direct-fired, as that is simply too intrinsically unsafe regardless of how large the installed base may be,” he said. “Steam, preferably through a vessel jacket or coils, is the best and safest design, although other heating fluids, such as circulating nonflammable hot oil, are acceptable. Electric heating coils are also acceptable but less preferable for a number of reasons.”

  On the brewery side of things, Beverage Master Magazine connected with Chad Gunderson, the president, CEO and head of brewing operations at Half Brothers Brewing Company in Grand Forks, North Dakota. Half Brothers is a family-friendly craft brewery specializing in creating unique beers with innovative ingredients and techniques in a relaxed gathering spot with a taproom, kitchen, live music and local art.

  When asked about the most important safety concerns that brewery owners and employees should be aware of, Gunderson said that “how to properly handle cleaning chemicals, hot water, hose management and cleaning floors” are his top recommendations.

The Role of

Personal Protective Equipment

  Personal protective equipment is vital across many industries, including craft beverage production. Breweries and distilleries should ensure that employees wear the proper clothing and footwear to do their jobs safely and without distraction or hazards. Protection for the eyes, ears and hands should be worn when operating specialized pieces of machinery that can put the body at risk.

  PPE has played an even more significant role in the craft beverage industry due to the COVID-19 pandemic. Depending on where a producer operates and what the ever-changing guidelines dictate, front-of-house staff members who interact with the general public may also need to utilize face masks, face shields, gloves, hand sanitizer and other sanitation measures.

Responsibilities of

Workers and Supervisors

  Ensuring that a brewery or distillery operates in a safe environment starts with good communication among everyone who works onsite. Owners and managers can begin this process by asking employees if they feel safe in the workplace and encouraging them to raise concerns about any potential hazards they have noticed in the facility.

  Buoni at Pennsylvania Distilling Company told Beverage Master Magazine that employee safety training is conducted by him directly. This includes testing equipment controls and safety procedures. 

  “Our safety checklist includes proper use of PPE, fire extinguishers, proper storage of products and chemicals, proper use of pumps and compressors, understanding of peripheral equipment including the steam boiler and chiller, use of any electrical equipment, grounding of tanks and pumps, food processing safety and how to lift objects like grain bags safely,” Buoni said.

  At Half Brothers Brewing, “Each new employee has an SOP manual and exam they must complete before working alone in the building and factory,” said Gunderson.

  The first places to look for safety hazards include the production facility and anywhere open to the public. But don’t forget about behind-the-scenes locations such as the shipping and receiving area or the bathrooms. A safety plan might include briefing delivery drivers and vendors about safety protocols unique to the facility.

Safety Tips for Brewers and Distillers

  Flooring-related slips, trips and falls are among the most critical safety concerns in a brewery or distillery. To ensure that the floors are safe to walk on, spills should be cleaned up as quickly as possible, relevant signage posted, and obstructions moved out of walkways. Obstructions include cords, boxes, bottles, cans and employees’ personal bags. Employees should wear sturdy, closed-toe shoes to protect themselves from broken glass, chemical spills and slippery surfaces.

  Chemical leaks, spills and handling are significant concerns for craft beverage producers because of how dangerous these substances can be when misused. Goggles, protective footwear and safety aprons can help prevent injuries due to chemical exposure. Make sure to clearly label hazardous materials, so employees know to avoid these products or use extra caution when handling them. Ensure proper ventilation in areas where chemicals are used, particularly in small spaces.

  Initial and ongoing safety training is important to prepare employees for potentially dangerous situations and common scenarios that could turn deadly without a moment’s notice. In smaller operations with just a few staff members, it might be necessary to cross-train all employees on the various safety procedures, so everyone is prepared to handle diverse tasks throughout the day. Being proactive with training is always preferable to training in response to an incident. In addition to how to safely use specialized equipment, it may also be beneficial to train employees on first aid, CPR and basic safety tips for seemingly simple tasks like opening boxes and stocking supplies.

  OSHA compliance is required of brewery and distillery owners in order to keep their licenses to operate. Laws and regulations in the alcohol industry frequently change, so producers should keep up with any updates. OSHA is known to show up unannounced to inspect and ensure that safety regulations are being followed. Some of the main things these inspectors look for are cluttered walkways, chemical storage and labeling, keg storage and written records that document training plans, hazard assessments and injury logs.

How to Keep Your

Staff and Customers Safe

  Safety in the brewery or distillery may seem like little more than common sense at first glance, but gentle reminders can go a long way in helping staff members remember what’s most important. Without suitable safety protocols in place, a beverage business could be subjected to extra inspections and incident investigations that disrupt normal operations and put the company at risk of fines or discipline.

  Buoni from Pennsylvania Distilling Company said that his best advice for a new distillery concerning safety is to ensure that they have a solid understanding of the distillation process from beginning to end. 

  “It’s critically important to know how the dots are connected rather than just taking somebody else’s recipe and making liquor,” he said. “Appropriate education is the best answer. For the tasting room, it is really very similar to any bar that serves alcohol to patrons. Having appropriately certified bartenders and servers is key. Staff must understand the uniqueness of a different license class so that all laws are followed.”

  Gunderson at Half Brothers Brewing Company recommends that brand-new breweries thoroughly research the proper chemical training, dosage, time and handling.

  “Clean beer starts at the source of cleaning SOPs,” he said.

  Keeping up with all of these safety requirements and regulations might feel like a hassle, but there’s no way around it if you want to run a reputable craft beverage business. By encouraging a proactive safety culture in your brewery or distillery, you will ultimately attract the types of employees and customers you want and need to stay in business while also letting people know that you honestly care about their health and safety.

Reverence Barrel Works: A Small Ontario Brewery with BIG IDEAS

Cyndi
man brewing in the barrel

By: Alyssa Andres

In the world of craft beer, trends abound. Styles of beer seem to become popular in waves – whether it’s fruity sours or ridiculously hoppy triple IPAs. When breweries catch on to a trend, they tend to ride with it. This results in a market saturated with similar offerings, while, somewhat ironically, it seems what many craft beer lovers are looking for is something new.

  While most breweries across North America are producing many of the same styles of beer and using similar brewing techniques, there is a small town brewery in Cambridge, Ontario, that is doing the opposite. Reverence Barrel Works has built itself on experimentation with the goal of producing small-batch craft beer full of personality.

  Reverence Barrel Works owners Brett Hunter and Matt Duimering always wanted to focus on two things: experimentation and quality. The two brewers started RBW in September 2019 after quitting their day jobs and quickly started playing around with different concepts for their beer. They’d both used traditional and non-traditional methods of brewing, incorporating slow-fermentation techniques, wild yeast strains and an array of different ingredients. They experimented with beer-wine hybrids, wild-foraged edibles and have even used gelatin in some of their beer. By playing with techniques and styles, RBW has managed to catch the attention of craft beer lovers across Ontario.

  The craft beer scene within Ontario is vast and spans across the entire province. There are microbreweries in some of the smallest towns in Ontario, and craft beer lovers will travel great distances to find the latest and greatest that breweries have to offer. Hunter and Duimering opened their brewery with this concept in mind. They knew if they had something on their roster that was a must-try, it would put their small brewery on the map for people touring the craft beer circuit.

  The release of Reverence Slrrp! Blue in December 2020 did just that. Hunter and Duimering created an 8% ABV, slightly soured blonde ale with the “natural flavor of blue” and the addition of gelatin, giving the beer a texture similar to unset jello. Although not something most people would care to drink every day, it was something that everyone wanted to try.

  “People drink with their eyes,” said Duimering. “When you’re scrolling through Instagram, you’re used to scrolling past a picture of beer, a picture of beer, and now there’s a picture of this blue beverage in front of you. You stop scrolling immediately.”

  Slrrp! Blue sold out quickly and was followed by Slrrp! Green and Slrrp! Red. The beers were something people felt they needed to try, and because they were produced in small batches, they sold out quickly after each release. Although successful, the Slrrp! series was more of a gimmick for Reverence to draw attention to the brewery. Their primary focus is on producing more traditional beers with a modern flair.

  Hunter and Duimering have experimented with a wide range of styles, from red wine barrel-aged sour red ales to maple barrel-aged pastry stouts. They use natural fermentation methods for their beer, so patience is a virtue when creating their products. Some beers take a few months to produce; others will stay in barrel for years. In the end, it’s all about quality and ingenuity.

  Since releasing their Slrrp! series, the brewers have gone on to partner with local wineries to create beer-wine hybrids using several grape varietals and brewing techniques. They chose to work with wineries that share their similar vision and values. They wanted to pair with like-minded people also focused on creating quality products that represent the region and reflect the unique terroir and climate of Ontario.

  Hunter and Duimering decided to source grapes from Traynor Family Vineyard in Prince Edward County, Ontario, for their beer-wine hybrid “Glou Glou Marquette.” The Traynor Vineyard is a small winery focused on sustainable permaculture, hand-harvesting their grapes and using natural, low intervention winemaking techniques. The brewers used Marquette grapes from the Traynor Vineyard and added them to a blend of golden sour ales. The beer spent five months in puncheons resting on the grapes, giving it a deep color and slight tannin. With rich flavors of red cherry and black raspberry, this hybrid beverage drinks more like a pét-nat wine than a traditional beer.

  Duimering said he loves working in this hybrid style that expresses the terroir and uses natural fermentation. “We don’t want to be pitching just wine yeast strains into our beer because I can go buy those commercial strains,” he said. “We want to work with people who are asking what is the native microflora? What is the flavor of Ontario? So whatever [yeast] is on the grapes, that’s what ferments them. We put that in our beer, and you get that terroir carrying over.”

  By incorporating wine into their beer, Reverence is appealing to a whole new demographic of drinkers. Being located close to wine country, it makes sense to utilize these ingredients and draw in wine lovers who are touring the area. Reverence has released several of these wine-beer hybrids, including a Chardonnay barrel-aged brett Saison aged on orange wine skins and a Flemish red ale aged for two months on Cabernet Franc skins. These beers are alive with personality and flavor, bringing the taste of the region to life.

  Located an hour west of Toronto, Reverence Barrel Works is not only surrounded by wine country but also by expansive farmland and sprawling forests. Naturally, Hunter and Duimering also gravitate to incorporating some of the region’s other fruit and flora into their beer. They’ve utilized wild foraged sumac to create their “Patience & Fruition Sumac,” a tequila barrel-aged golden sour with notes of lemon and raspberry. They are now awaiting warmer weather to incorporate other wild edibles into their recipes, including dandelion, for a natural bitterness.

  As a young brewery, the two brewers are continuing to experiment and expand. Many of their beers are extremely small batch and don’t make it onto their website or bottle shop. As a result, Reverence Barrel Works has started a “Barrel Club,” offering its members exclusive access to these limited edition beers. Each member receives 12 different beers a year not available to the public. Other benefits include access to pre-order unreleased beers and double bottle limits on limited edition beers. The Barrel Club allows RBW to showcase their most experimental beers as well as brews that would never be feasible to produce on a large scale due to cost and labor. They can also test their products this way and get a sense of what people like before producing large quantities. The club has been a great success for the brewery, with all 75 spots in the club selling out last year.

  Another reason RBW has been successful, even amid the COVID-19 pandemic, is the support from bottle shops that have opened across the province. Before the pandemic, restaurants in Ontario were not legally able to sell takeout alcohol at all. Since restaurants were forced to close for most of 2020 and now into 2021, the government amended that law, enabling restaurants to offer takeout beer, wine and even cocktails in sealed containers. Many restaurants have transformed their operation into full-fledged bottle shops, offering an array of craft beer from across Ontario made by small producers that are not available in regular liquor stores. These shops have helped get RBW’s beer into the hands of a community that would otherwise never get to try their products.

  In their own bottle shop, RBW does not offer tasting flights. Their beer is sold only by the can or bottle in order to encourage their customers to experience the full product. “I’m not a fan of speed dating,” Duimering said, “and I often find when people do flights, they’ll get a heavy stout and a light lager and a fruited sour and then some hoppy IPA, and it just wipes your palate. We want people to really get to know the beer and enjoy it more.”

  The bottom line for Reverence Barrel Works is quality. Duimering and Hunter want to do things right and ensure that when people taste their beer, it’s the best it can be. Whether it takes a few months or a couple of years to produce, they’re turning out unique products made with love and passion, and that is something craft beer lovers want.

  Consumers are starting to move away from what is trendy and looking for something different – something unique that tells a story and represents a person or a place. By going back to more traditional methods of production, using local ingredients and taking their time to create quality, small-batch beer, Reverence Barrel Works is able to capture the attention of their target audience and make a name for themselves in an otherwise extremely saturated market. They are definitely a brewery to take note of while exploring the flavors that Ontario craft beer has to offer.

Barrels & Racking:

Cyndi

Modern Systems, Historic Preservation and Refurbished Options Producing Optimal Results

stacks of barrel

By: Cheryl Gray

In 1879, distiller Frederick Stitzel patented a revolutionary method that put a new spin on how barrels for spirits and other crafted drinks are stored.

  Some 150 years later, the practice of racking barrels, also known as ricking, is an industry-standard. Placing barrels on their sides, rather than upright, and supporting them underneath with either timber or metal, increases air circulation and space.  Racking keeps pressure off barrel staves, a problem that Stitzel and other early distillers learned could result in losing a barrel’s precious contents through leakage.

Space to Breathe

  Western Square Industries, headquartered in Stockton, California, has been in business for 43 years and is among the global leaders in its field. The company originally catered to the agriculture and livestock industries, specializing in two main products, steel gates and corrals. Western Square Industries now manufactures a broad range of barrel racking systems for distillers, breweries, wineries, meaderies and cideries. It serves clients across the United States, with a significant client base in California, Texas and the Eastern U.S.  

  President and CEO Trygve Mikkelsen took over the company in 1993 and quickly recognized its potential in manufacturing barrel racks. Mikkelsen told Beverage Master Magazine about one of the company’s most popular barrel systems for distillers expanding their operations.

  “The Barrel Master is our most popular model for distilleries in growth since the user can mix and match sizes of barrels in a safe forklift-able stacking system. The Barrel Master can also be bought with the barrels sitting on wheels for easy rotation if desired. This is possible because there is no weight on each barrel.”

  The Barrel Master 30/53 allows barrels ranging in size from 30 to 53 gallons to be stored on the same rack. The rack-on-rack design allows barrels to be more visible and accessible. There is also the opportunity to stack barrels higher without compromising stability. An optional wheel design provides 180-degree barrel rotation in either direction. Unlike other systems, which are more like pallets between barrels and require a uniform barrel shape and size, Mikkelson said Barrel Master’s rack-on-rack function eliminates any barrel putting pressure on another below. The rack also features a storage-saving design in that it can be nested into a stack when empty.  The racking system is manufactured from stainless steel and is available in several color and coating options.

  Mikkelsen said breweries and distilleries also use his company’s seven-inch two-barrel racks and another product known as Big Foot. Sometimes, Mikkelsen said, full access is less important than space.  In that case, clients choose the company’s low-profile rack, known as two-barrel four-inch racks.

Tradition and Preservation

  While newly established distilleries may look to modern-day solutions for ricking, the name Brown-Forman evokes a history like no other, including that it is the only distillery company in the world to make its own barrels, which are stored in a range of distilleries, some with warehouses and barrel ricking systems dating back to the late 1800s.

  When a young Jack Daniel first learned the art of making whiskey under the tutelage of a soon-to-be ex-slave-turned-master-distiller, Nathan Nearest Green, neither could have imagined that the whiskey created would become synonymous with the tradition and preservation of some of the most historic distilleries in the world. Brown-Forman is the keeper of that tradition, in the form of four distilleries, three in Kentucky and, of course, the Jack Daniel’s Distillery in Tennessee. 

  With some 130 years of warehouses spread across four distilleries, the barrel ricking found in any given Brown-Forman warehouse depends upon many variables. Chris Morris, Woodford Reserve Master Distiller for Brown-Forman, explained that while a modern distillery can install all one type of ricking, the historical distilleries of Brown-Forman have operated on a different premise.

  “The date of construction for the numerous warehouses at our distilleries ranges from 1890 through 2020.  Needless to say, this means we have many types of barrel rick material, from wood to metal. Within those two groups, we find different types of wood and metal in use over the years. That depends on the era an individual warehouse was constructed and who built it. We also have some palletized storage as well as floor dunnage. The Woodford Reserve Distillery, for example, has warehouses with wooden ricks and others with heavy iron rails. Woodford also has some palletized space and floor dunnage. 

  “While our ricks are made of various materials, they are all using the same design that was patented in 1879: the ‘open rick’ design. Now, this again will vary in length and height, based on the size of the warehouse. Some wide houses will have a rick that holds 31 barrels, while others may only hold 11 due to the narrow width of the house. Most of our warehouses have ricks that are ‘three high’ or have three tiers of ricks.  However, we do have one house that has ‘six high’ ricks. Still, the design doesn’t change.  When our cooperage makes a barrel for a distillery, like a Woodford Reserve specific barrel, it doesn’t know which warehouse it is going to be entered into, so that barrel has to fit in every warehouse’s ricks.”

  When it comes to proper storage, Morris said, some things never change. “The proper storage for a barrel in the rick is simple. Rick it with the bung in the 12 o’clock position to minimize leakage. If a barrel already has a leak, rick it with the leak point at 12 o’clock. Otherwise, it is the condition of the warehouse that is important, rather than how the barrel sits in the rick.  We want clean, dry conditions in the warehouse.”

  Morris also said that there is no need to rotate barrels if there is good inventory control, along with batching barrels together to make a consistent flavor profile. A barrel matures based upon warehouse temperatures and the length of time the barrel spends in the warehouse, not by how it sits.

  “There has been a tremendous amount of study conducted on the impact temperature has on the maturation process,” he said. “Brown-Forman has research papers that date back to the 1920’s – we operated during Prohibition under medicinal permit KY—3. Based on these many studies, we never allow our Kentucky warehouses to drop below 55 degrees Fahrenheit in the winter. This requires that each of our warehouses be constructed with thick masonry walls so they can be heated as necessary. They will get as hot as they will in the summer because they can’t be cooled. Jack Daniels has ‘iron clad’ warehouses, so they can’t be heated and will, therefore, get cold in the winter. So, Brown-Forman matures its whiskies across a variety of maturation styles.”

Reusing Resources

  Menomonee Falls, Wisconsin, is home to The Barrel Broker, co-owned by John and Kathleen Gill, who started the business 11 years ago in California. The company sources and supplies used barrels and racks for breweries, wineries and distilleries. While its clients are primarily in the Midwest, The Barrel Broker also has business overseas.  The company’s customer base prefers barrels freshly emptied and slightly wet. A lot of that barrel stock comes from bourbon distilleries which, by law, can only use a barrel once for bourbon.

  Accordingly, The Barrel Broker has some insight to share on how to store barrels and what its customers prefer when selecting used racks. John Gill, who has a background in the wine tourism industry and heads quality control for the company, said that for his clients, choosing a racking system really comes down to need, preference and budget.

  “Racks are designed to safely store barrels two wide and up to five stacks high while being able to be moved with a pallet jack or forklift. The seven-inch racks allow ample space to access the bungs while stacked for pulling samples or topping off.  We suggest used, refurbished or new two-barrel racks in three-to-seven-inch sizes.  We sell them all for barrels, 15 to 60 gallons.” 

  Gill agrees with other experts, such as Morris, who say that barrels don’t need to be rotated. He told Beverage Master Magazine that he also believes that keeping the proper temperature in a warehouse is key to a successful product outcome from any barrel.

  “Ideal for breweries is high humidity, 60% to 70%, and cool temperatures to minimize evaporation loss. Ideal for distilleries is a continuous change of temperatures and humidity to achieve complex flavors and complexity in barrel-aged spirits.”

  Price and preference dictate what racking systems a brewery or distillery may choose. However, experts agree that controlling warehouse temperature, avoiding undue pressure on barrels, and keeping tabs on inventory control produce the best results.  Whether wood or metal, racking is a matter of knowing what will stack up as the best outcome for the product inside a barrel.

Mixology Mishaps:

Cyndi

How To Turn Negative Online Reviews into Successful Sales

woman reading on a tablet

By: Chris Mulvaney, President (CMDS)

Sticks and stones may break our bones, but words will never …hurt us? Wait, never mind.  In the craft beverage industry, words can do damage, especially online where your reputation is always one Google search away.

  Facebook, Yelp, and Google are the three most-trusted review sources for local searches.  Reviews on these sites matter.  The way that your business treats a negative review can tell your customers a lot about you.  So, if you do happen to receive one, you need to act fast.

And while you are no doubt used to handling the difficult customer in person, social review channels are open for all to see, and negative comments can reflect poorly on your craft brand and, ultimately, cost you sales — right?  Well, yes and no.

  Yes, if you don’t manage your negative comments properly, then it could be bad news for your revenue stream. However, there are ways to offset negative reviews. And, if you respond the right way, you can turn those negative comments around and avoid having a damaging social media mishap.

  In fact, you can leverage them to actually improve your conversion rates, “boost” your sales, and ultimately create success for your craft beverage brand.

Create a Game Plan

  Before you take any action on a review, you should always have a game plan in place. That way, your social media presence remains consistent across all review platforms.

  Look at it this way: think of each negative review as an opportunity to show your customers that you care.

  Here are some game plan directives to put into place:

1.  Don’t Ignore Them or Be Defensive:  Hearing someone criticize your business hurts. It can be tempting to close your browser every time you read a bad review, or, even worse, to respond with a cutting retort, but burying your head in the sand or exhibiting online “road rage” isn’t going to solve anything. Instead, come up with the right response. Address them by name. Humanizing your approach will demonstrate your brand ethics. Make sure that you remain genuine. Don’t answer with an auto-reply. Take the time to actually investigate each issue. Don’t debate the validity of their statements, argue, or respond in an aggressive or combative way, even if you don’t agree. Arguing with a dissatisfied client online makes their original complaint seem more valid, and worse, it never makes you look good.

       Instead, thank the reviewer for their feedback and offer a sincere apology for their experience. You don’t have to take responsibility, but do show empathy.

2.  Respond as Quickly as Possible: It is vital to respond to negative comments as quickly as you can.  Doing this will give you a better chance to salvage those bad reviews. Each minute matters on social media because everyone has real-time access to it.

       To help you manage your social media responses in a timely manner, it’s best to hire an agency. They can assist with implementing tools so you are alerted in real-time whenever you receive a comment on one of your channels. You can quickly resolve any issues and prevent significant customer loss.

3.  Really Make the Effort to Solve the Problem: Making something right will also show potential customers that you are completely committed to ensuring satisfaction.

       In addition, many reviewers will go back and post their experience if it turns into a positive one, and every positive review takes the sting out of a negative one. Highlight these experiences so customers see that you care about the outcome.

4. Keep it Real:  An imperfect, but pretty strong rating appears much more believable to customers than having a perfect record. Unblemished reviews can look “fake” and more untrustworthy than their blemished counterparts. In a nutshell, negative reviews provide some honest feedback on your craft beverage product or service and can mix in nicely with the positive commentary.

Leverage Other Business’s Negative Experiences

  As the saying goes, a person who learns from other people’s mistakes is a wise person. And leveraging other people’s negative experiences can offer many benefits.

  Learning from others by doing your research helps you avoid the same obstacles.

  For instance, here are some top online customer complaints about various craft beverage establishments swirling around social media right now:

●    Place not open as advertised/Website not updated/Hours not listed.

●    Want a bigger pour for the price.

●    Employees are rude/non-compliant with safety.

●    Tour was longer than it stated.

●    Not clear about rules (kids, food, etc).

●    Not enough offerings/limited selection.

●    No Flight Layout (for breweries).

  All of these comments boil down to the same two issues: Online presence and customer communication.

  You know what takes to manage your business and your inventory. And, with the popularity of craft beverage businesses, there is a steady stream of new customers. Some patrons, used to a different type of establishment, or ones who are simply impatient when it comes to being served at a busy place, offer a different level of frustration.

  To counteract this, make sure you take notice of negative reviews from similar businesses to limit having the same thing happen to you.

  Here are some counter-acting responses to the above examples:

●   Always keep your website and hours of operation updated. Do you require reservations or are you first come, first serve? Do your hours change with the seasons? Close for private parties? Planning these updates in advance and keeping your business information up to date ensures you do not get disgruntled customers who are more likely to chalk up their “bad” experience through a negative review.

●   Be CLEAR with your pricing, online and in person. Be transparent about promotions and their start/end dates. State whether sales tax is or is not included. Be open about the size of your pour. Being transparent can avoid any unwelcome surprises.

●   Train your employees in the art of customer service. While you know there will be times when it will get busy and your staff may get pulled in different directions, the customer should always be treated in kind.  Consider security cameras to give peace of mind to both the customer and the staff so that any situation can have an objective eye.

●   Be aware of the most up-to-date safety and cleanliness measures. Make sure your business adheres to them to keep everyone as safe as possible all round.

●   If you provide tours, state when your tours begin and finish. If they can be more lax, state that too. Make sure this is stated online and in person.

●   Let your customer be prepared before they come to your business on what your rules are by posting them and in your place of business. Do you have a food menu or do you use a trusted vendor? Are kids allowed? Is there an “Adults-Only” area? Tasting rules? Your menu and offerings should be clearly stated online and in person. Make sure to keep this updated. Are you a brewery with a flight menu? Let them know either way. Some things cannot be avoided (such as running out of a flavor or not being able to offer growlers) … try to keep up on this as much as possible. Mention it on social or display it on a board at your business.

  You will always have to take the good with the bad, but the more you know, the more you can prepare for.

  It’s True: Those Bad reviews Can Actually Improve Your Sales. Believe it or not, bad reviews have the power to improve your sales and conversion rates, too.

  As previously mentioned, if your business gets only positive reviews, consumers might question whether those reviews are legitimate.

  Since nobody is perfect, having a healthy mix of both positive and negative reviews will help customers view your business as more trustworthy. Most customers actually expect negative reviews on your site, and if they don’t see them, they think your reviews are fabricated.

  And, when there are negative reviews mixed in with the positive ones, that reduced skepticism will add to your brand’s authenticity.

  For that reason, it’s important not to delete your negative comments on your social channels because they can actually work in your favor by making the positive comments that much more credible.

The Last Gulp

To recap:

●   Create a uniformed GAMEPLAN.

●   Use other competitors’ negative review experiences to improve your brand strategy.

●   Leverage negative comments to drive beverage sales and conversion rates.

  That’s why it’s important to hire the right agency to manage your online presence with these initiatives and more. Doing so ensures that you uphold a valuable asset – your business’s reputation, without taking away from your valuable time.

  All in all, your social media strategy in how you respond to negative comments can flip the unsatisfactory customer experience on its head, turning them into positive sentiments and increased sales, resulting in the happy sound of clinking glasses.

  Chris Mulvaney is a business developer, entrepreneur, and an award-winning creative marketing strategist. His extensive professional background includes working with some of the world’s leading brands – and personally helping clients refine their corporate vision and generate the kind of eye-popping results that too many companies only dream about. Visit… cmdsonline.com

2021 Beverage Trends

Cyndi

By: Tracey L. Kelley

No producer wants to feel like their business is simply dictated by trends and not backed by individual vision and a solid plan. However, if 2020 taught us anything, it’s to be strategic, targeted and, most of all, flexible.

  To understand what consumers want in 2021 and beyond, Beverage Master Magazine gathered some trend data and talked with Holly McHugh, marketing associate for Imbibe, a beverage development company focused on the formulation, customization and commercialization of cutting-edge beverage products that provide a “bolt-on R&D function” for companies without R&D or that need to expand in this area.

So—What’s New?

  Taking stock of the past year and establishing aspects of revision is still a personal and professional journey. Still, maybe some of these indicators will resonate as either extensions of current practices or sparks of innovation.

People are Eager for To-go and Online Options

  “The pandemic changed the way we shop, socialize, entertain and more,” McHugh said. “This created a need for CPG (consumer packaged goods) brands to offer products that provide an escape from the mundane but can be enjoyed at home.”

  In December 2020, Forbes reported that “total eCommerce penetration experienced 10 years of growth March through May 2020.” It cited research from IWSR that stressed “online sales of alcohol in the U.S. alone are expected to grow by more than 80%” in 2021. The IWSR analysis indicated that “beverage alcohol eCommerce value grew by 42% in 2020,” and the forecast is that the U.S. will overtake China “as the world’s largest beverage alcohol e-Commerce market by the end of 2021.”

  Quite simply, customers are fond of the convenience and expanse of options online ordering provides. In major and secondary market areas, consumers use platforms like Drizly to browse various selections and receive their purchases within 60 minutes. Many local producers also have access to DoorDash and other delivery services, regulations permitting. “Ghost bars” — extensions of virtual or cloud bars or restaurants often accessed only through third-party delivery services — also saw an increase in consumer interest as producers found new ways to lower overhead but expand product offerings and brand awareness.

  Do-it-yourself kits, mixology classes, premium bar selections, unusual or over-the-top experimental selections and other experienced-based offerings continue to drive consumer interest in 2021. They also still desire personal connections with makers.

Non-standard Products Continue to Rise

  Hard seltzer, cider, tea, kombucha and beer tap into consumers’ desire to balance healthy libations with beverage-driven exploration.

  For example, pandemic purchases of hard seltzer, in particular, rose significantly in 2020, moving beyond previous limitations of seasonality, and there’s no stopping point yet. Nielsen reported that “Hard seltzer-correlated ready-to-drink cocktails drove $120 million in U.S. off-premise sales in the 52-week period ending June 2020, while growing at a 127% rate compared with the previous year.” That growth, Nielsen states, “opened the doors to an even broader array of new and bolder flavor options accompanying the base liquid, and it’s allowing manufacturers to expand the limits of what ‘hard seltzer’ means.”

  Zero-proof spirits, especially those enhanced with adaptogens – herbal substances that promote wellness – botanicals and CBD also have growth potential.

  As regulations shift, CBD- and even THC-infused products are positioned for a meteoric rise, according to a 2020 report by Grant View Research. “The global cannabis beverages market size is expected to reach USD 2.8 Billion by 2025 at a CAGR (compounded annual growth rate) of 17.8 percent.” While some consumers might opt for THC’s “therapeutic effects along with the euphoria it provides,” Grant View Research indicated, people consider CBD products differently.

  “Lack of psychoactive effect in the CBD drinks is widening its scope for usage of the drinks in medical purposes. Many consumers are considering CBD drinks as a wellness and anti-inflammatory products, such as kombucha, a probiotic drink. This drink can potentially be used for treating chronic pain, anxiety, substance use disorders and central nervous system diseases. These factors are expected to boost the adoption of the product, resulting in the growth of the segment,” the report outlined.

Health is Front and Center

  “Since the onset of the pandemic, improving physical and mental health has become a top priority for consumers,” McHugh said. Imbibe’s trendspotting indicated a sharp uptick in non-alcoholic wellness beverages and other forms of “permissible indulgence.” While this doesn’t seem to align with alcohol initially, it presents opportunities to consider communications and branding that acknowledge aspects of a healthy lifestyle.

  Spirit-forward classics, which celebrated resurgence in 2020, aren’t slowing down in the new year and might provide another way to acknowledge the balance of responsible consumption that focuses on taste and experience.

  Combating stress with beverages, otherwise known as mood boosters, that allow for clarity, relaxation and sleep is another trend for 2021, similarly to non-traditional offerings.

There’s a Greater Awareness of Ethical Practices and Cultural Appropriation

  In addition to a greater interest in immunity and mood-boosting beverages, McHugh said there’s an increased demand for global products and flavors — with a caveat.

  While culinary tourism is at a high, panelists at Bar Convent Brooklyn last fall stressed that consumers would continue to share dollars and social media influence with businesses that are more progressive when addressing workplace inequalities, sexism, racism and other societal concerns. They want inclusion and diversity, but from the originators. For example, tiki bars are replaced with nautical or tropical themes; an introduction to popular new tequila includes cultural history from someone in the Latinx community; and a closer examination of whether the producers’ table includes people of color and women, especially when it involves other rising spirit trends such as sake, soju, South American spirits and Japanese whiskey.

Value and Safety Still Prevail

  While this really isn’t a surprise, it’s simply a reminder that we can’t move into what was once normal just yet.

  “Economic uncertainty created demand for value, which we anticipate will be evident through increased sales in multi-use and multi-pack products and private label innovation,” McHugh said. “Safety is something we always think about in the industry in the sense that we don’t want to sell a product that could be dangerous to the consumer, but concern about safety has been heightened by the pandemic. Consumers are purchasing groceries online now more than ever, paying closer attention to product packaging and checking what safety precautions food service establishments are taking before eating out or ordering in.”

Tank Supplies for Modern Distilleries

Cyndi
brewing and distillery equipment

By: Alyssa L. Ochs

In a distillery setting, tanks are used for various purposes, including blending, fermenting, storing, distilling and filtering. But in addition to the actual tanks, several tank-related products and accessories help distillers do their jobs more effectively and efficiently.

  When choosing tank wraps, insulation, meters and stands, it is essential to consider these products’ functionality, cost, maintenance and ease of cleaning and sanitation. Meanwhile, there are unique tank-related considerations for distilleries that other types of beverage producers may not need to address. Fortunately, many specialized suppliers serve the distillery market to meet these needs and solve common issues that arise while making craft spirits. 

Essential Distillery Tank Supplies

  Craft spirit distilleries use tank wraps to provide fluid temperature control and help fluids circulate properly inside the tanks. Wraps, such as glycol-styles on the sides and bottoms of tanks, also reduce condensation and moisture loss.

  Similarly, tank insulation ensures that temperatures stay as hot or as cold as necessary. Insulation on tanks prevents freezing pipes, corrosion and mold while also controlling humidity levels and saving energy. For example, Syneffex insulation is a popular option among distilleries to reduce energy usage and emissions for more environmentally sustainable operations. Distilleries can find storage and fermentation tanks that have optional heating and cooling jackets to maintain optimal temperatures.

  Distillers use tank meters to gauge pressure levels in their tanks and monitor the liquids’ temperature inside them. Meters also help distillers monitor the flow to minimize product loss over time. Pressure-relieving and venting devices are optional features on some distillery tanks. Also, tank stands are important in the distillery to hold and secure tanks in a safe way. Frames built for this purpose come in various sizes to fit different levels of production.

  Distilleries also use CIP spray balls, hydrators, valves and racking arms. Cooling coils, air compressors, aging barrels, clamps and condensers are other accessories that craft distilleries may need to replace or upgrade over time.

Choosing the Right Tank Supplies

  Distillers should choose tank wraps that are flexible and easy to put on and adjust as necessary. Tank insulation should have a good track record for energy efficiency so the distillery can save money in the long run. It’s in a distillery’s best interest to work with a supplier that can build storage tanks with as much insulation needed for the operation.

  One good option for insulating beverage tanks is the Flextank FlexChill system in a temperature-controlled room. FlexChill is an exterior wrap chilling system with glycol chillers. Useful for cylindrical tanks in sizes from 50- to 300-gallons, this system is designed for maximum insulation performance. With distribution outlets in Washington, Australia, South Africa, Chile and France, Flextank products are used to produce wine, mead, cider and specialty spirits. For heating and cooling, distilleries can also find dimple jackets, open jackets, half-pipe coils and internal pipe coils from Stainless Fabrication, Inc., in Springfield, Missouri.

  Distillers should look for meters with hygienic process fittings to maintain clean and sanitized tanks that don’t compromise the quality of the product. The measurement range and temperature compensation capabilities are features to look for when choosing a new meter. Some companies that supply these meters will offer information security standards and even loaner units while servicing an existing product.

  Bellevue, Washington-based ATAGO U.S.A., Inc. manufactures refractometers, viscometers, polarimeters, pH meters, saccharimeters, and others. The company’s In-Line Refractometer PRM series is commonly used for craft beverage tank monitoring and equipped with an alarm that signals when valves exceed high and low limit values.

  For tank stands, distillers should consider portable products in case there’s a need to move them due to space confines or a potential future expansion. YoLong Distillery Equipment offers support frames that provide standard column support and can be customized to provide additional functions.

  It is in a distillery’s best interest to choose reliable suppliers that can provide ongoing support and replacement parts, no matter the equipment.

Maintenance & Cleaning Considerations

  Keeping equipment clean is critical in preserving the product’s integrity, keeping customers safe and staying in business. The basics needed for tank cleaning include a pump, clean water, heat, citric acid, dilute sodium hydroxide, hydrogen peroxide solution, ethyl alcohol and safety gear. Check tank supplies for any oil, grime, dirt or dust collected during the distilling process or in storage. It is common for residue to accumulate around a tank meter’s surface and make it difficult to read, for example. While cleaning distillery tanks, rubber gloves and safety glasses should be on-hand for protection, and workers should dress in long sleeves, pants, and boots.

Why Distillery Tank Supplies are Unique

  Beyond craft distilleries, several industries use tanks, such as manufacturers of chemicals, oil and plastics. However, distillers have unique considerations when choosing tank supplies.

  Distillery tank supplies must be food-grade equipment since they are involved in making consumable products. Tanks and supplies must also withstand hot and cold temperatures and perhaps serve multiple purposes in the distillery. Since tanks are large and many distilleries operate in small spaces, multi-functional tanks are a significant asset to maximize square footage. Therefore, it may be necessary to update tank supplies when using an existing tank for a new purpose.

Tank Supply Companies

  In addition to the companies already mentioned throughout this article, other reputable suppliers specialize in the craft spirits market and offer high-quality supplies and accessories for tanks.

•   Affordable Distillery Equipment, LLC has a wide range of accessories for distillery purposes, including hydrometers, thermometers, cooling coils, air compressors and ingredient kits. Whether your distillery equipment budget is $5,000 or $500,000, their website, Distillery-Equipment.com, offers used equipment for sale in addition to its brand-new water and spirit storage tanks, fittings, tubing, thermometers and pumps.

http://shop.distillery-equipment.com

•   Global Stainless Systems, based in Portland, Oregon company supplies distilleries with various types of equipment in addition to tanks, including glycol chillers, valves, fittings and hoses.

http://www.globalstainlesssystems.com

•   Mile Hi Distilling based in Wheatridge, Colorado,  offers distilling supplies specific for fermentation, including several meter options.

Moonshine Still Supplies and High-Quality Distilling Equipment

  Of course, these are just a few of the many U.S. companies serving distilleries’ needs, but it provides a starting point for sourcing tank accessories. Distillers should choose a supplier that regularly works with distillery tanks rather than general tanks for other industries and provides a warranty on the products they sell. While these distillery supplies may seem fairly straightforward on the surface, having ongoing support is a huge help if something goes wrong or during any future expansions.

Up Your Consistency and Repeatability Game With Quality Testers and Meters

Cyndi

By: Gerald Dlubala

Testers, meters, monitors and probes make it possible for craft alcohol producers to raise their standards and improve their craft. The overall move from older, unreliable, visual-based testing to greater process control with more accurate and precise analysis means repeatable sample measurements and more product consistency for reporting purposes.

Quality Control and Analysis at Your Fingertips

  “Measurement and meter use within the distillery are critical for quality analysis and quality control,” said David Zavich, Applications and Technical Support Manager for Mettler Toledo. Mettler Toledo is a leading provider of precision instruments and research and development-related services, quality control and production across numerous industries.

  “At the very least, the distiller should possess a quality pH meter and density meter for help in making informed decisions throughout the production process, and know if and when to intervene and make any needed adjustments. The best way for a distiller to know when the mash is within the acceptable pH range – 5.2-5.8, 5.4 being optimal – for the enzymatic activity to convert starches to sugars is with a quality pH meter. It also helps monitor the critical fermentation activity of a distiller’s beer, when pH should decrease to 4.0-4.5 as yeast metabolize ammonium ions and excrete organic acids. A pH remaining above 5.0 indicates a lack of activity, and pH below 4.0 may indicate the presence of undesirable bacterial contamination.

  “Benchtop density meters are invaluable for determining the proof and quantity of distilled spirits for TTB reporting purposes,” said Zavich. “Handheld versions can determine mash extract efficiency before fermentation, measure distiller’s beer to ensure fermentation is complete, calculate alcohol by volume, and measure proof during the distilling process that aids in making cuts.

  “To measure density, the distiller has three available options,” said Luke Soposki, marketing specialist for Mettler Toledo’s Analytical Chemistry division. “They can use a hydrometer, which is inexpensive and offers several industry measurement scales, but they are fragile, dependent on the user for results and have longer measurement cycles. Pycnometers are also inexpensive and can achieve a level of accuracy, but they require a higher level of training and have limited measurement scales available. The best choice is a digital density meter. They are more expensive but easier to use, more consistent and reliable, and have a shorter measurement cycle. They cover a wide density range, have automatic temperature compensation, and are available in a variety of models to meet the specific needs of the distiller.”

  “Density meters are quite durable,” said Zavich. “Benchtop units are quite self-sufficient with a suggested yearly preventative maintenance. They have an expected lifespan of around 10 years, but we’ve seen operational units well beyond that mark. Handheld units have no specified terms of use but are equally self-sufficient and expected to last many years under normal use.”

  “The main thing is to ask questions before purchasing,” said Soposki. “Mettler Toledo offers a full suite of testing solutions that include density meters, refractometers, titrators, spectrophotometers and pH meters. We can also talk about automation and multi-parameter options when needed. Distillers’ needs are always evolving, and we know that they are still looking for an easier way to release product after testing, specifically with TTB approved handheld density meters. Ask specific questions about the instruments related to your process applications. Ask for a demo, either onsite, virtually, or even in a try-and-buy program when available. Look for manufacturers that can support you across your business needs and offer service and support beyond just the equipment purchase.”

All in for Peace of Mind

  Or, you could go all in and buy the Rudolph Research Densitometer, the same machine that the TTB uses to send off samples for auditing. That’s what Greg Pope, Master Distiller of Missouri Ridge Distillery, did when he opened his distillery in Branson, Missouri.

  “It was pricey for sure,” said Pope. “At the time, it was a huge investment, around $6,500, plus another couple of thousand in training costs. It easily outpaced the cost of other densitometers, but it’s the one piece of equipment I thought was worth it based on time value savings, and in our case specifically, the frequency of the breakage factor of common hydrometers. I use it every day for my spirits as well as my beers, so for me, it’s a quality investment.”

  Accuracy and repeatability are always priorities in the distillery, and Pope told Beverage Master Magazine that he’s tried all the gadgets, getting hands-on experience at American Distilling Institute conferences and conventions. With the Rudolph Research Densitometer, he proofs a barrel in 25 to 30 minutes versus the 24 to 36 hours needed using traditional proofing methods.

  “When I got audited, and the agents saw that we have the same equipment that the TTB uses, we were already in favorable standing for trying to do the right thing,” said Pope. “This one piece of equipment holds all of our historical data that is time-stamped, properly labeled as tester batches, bottling runs, etc. and is transferable to a thumb drive for easy auditing. It’s designed for upgrading rather than obsolescence, saving money in the long run. We added the refractometer package when it came available for true and corrective proofs on our line of cordials.”

  Pope said that the training was an intensely monitored, two-day affair, but by the end of those two days, he was comfortable using the equipment for all of his applications and performing all necessary tests independently.

  “The only hiccups I’ve had with this equipment has honestly been because of human error,” said Pope. “Our machine is set to give us a recalibration reminder every Monday at midnight, and we can’t do any further testing until that recalibration is completed. The process is easy, and then we’re good to go for another week. This densitometer also has international settings, and because we export our bourbon to the U.K., we can provide their required test results.”

  Pope said that he also helps other distillers by testing and auditing their samples, providing another way to grow and support the distilling community.

Quality H2O: Good Water Equals Good Beer

  “That’s what brewers will tell you, and it’s certainly a good rule to follow,” said Mike McBride, marketing, IT and social media manager for Industrial Test Systems, a leading American manufacturer of instruments and chemistries designed to test water quality parameters. “It’s just a fact because beer is over 90% water, so it follows that good water makes for good beer.”

  Industrial Test Systems offers their popular eXact iDip Smart Photometer and their eXact pH meter to help brewers stay on top of their water parameters.

  “Visual testing only gives the end user a baseline guide or range versus digital testing that is much more precise and provides exact, repeatable results,” said McBride. “Our meters bring those types of laboratory quality results to you, and that’s important because of the many different tests performed on the water within a craft brewery. One example is testing for water hardness because different beers require different levels. Dark beers require harder water, while lighter beers use softer water. You have to have an accurate, quality test to determine what type of water you’re using.”

Brix and pH Meters: A Brewer’s Best Friend

  “Measuring pH and Brix levels in brewing is essential,” said Jason Brown of Milwaukee Instruments. “Both units are a must because those measurements ultimately determine the type of beer you will brew, how the flavor will turn out, and what percentage of alcohol the brew possesses. To measure alcohol content with a meter like our MA871 digital Brix refractometer, you take an initial Brix reading of the unfermented wort and then a follow-up reading once fermentation is complete. Those values are plugged into a conversion chart to determine the percentage of alcohol in your final product. Taking pH readings on a meter like our MW102 within the brewing process takes place from the beginning of the brewing process to the end, using it for multiple applications and processes.”

  Brown told Beverage Master Magazine that brewmasters typically already have basic knowledge of pH testers and refractometers. Still, even if they are new to the game, Milwaukee Instruments provides user-friendly equipment, with complete YouTube tutorials instructing the user on the operation, maintenance, storage and calibration of the meters. Most units come with a two-year warranty on the base unit and six months on the electrodes. Their bench meters offer data logging that is an advantage over comparable handheld units.

  “It’s recommended that both types of meters be calibrated before each use to maintain accuracy across all samples tested,” said Brown. “Our units can be calibrated by the end-user with no issues.”

Steam & Water Flow Measurement: Going with the Flow

  “Given the need for accuracy, consistency and repeatability, brewers should always choose the highest quality meter they can afford,” said Marc Bennett, regional sales manager for McCrometer, Inc., worldwide providers of precision flow meters for liquid, steam and gas applications. “Flow metering is all about optimizing production to give the brewer consistent and reliable results through understanding the precise temperatures, pressures and flow being used.

  “The best way to measure steam is through equipment like our V-Cone Meter. It helps a brewer understand the precise temperature, flow and measurement of their team processes, allowing them to optimize their consistency,” said Bennett. “We know craft brewers are frequently tight on space, so our V-Cone Meters are designed for tight fit and retrofit applications while handling most operating environments. Some of the largest, most well-known breweries use V-Cone meters for steam measurement, but they are very applicable for smaller brewers as well.”

  McCrometer also offers a line of electromagnetic flowmeters (MAG) for accurate water flow measurement. Their pumps rely on velocity and pipe diameter information to determine flow over wide ranges with high precision accuracy. Their SPI MAG measures everything from in-flow water through wastewater, including industrial flow processes involving potable water, slurries, sludge, cooling water and pulp stock.

  “Whatever the choice, brewers should always choose U.S. manufactured meters,” said Bennett. “U.S. manufactured meters are often more readily available and more quickly shipped than the non-U.S. manufactured counterparts. If you choose a high-quality meter with a long lifespan and U.S.-based support, you’re getting a great return on your investment. The last thing you need or want is to have your brewing process impacted or even halted because of support issues.”

  Bennett told Beverage Master Magazine that McCrometer meters have great attributes, including the aforementioned long lifespan and support. Perhaps one of the best advantages of both their MAG flow meters and the V-Cone DP meters is the advantage of having no maintenance or repair schedules.

  “That’s a big load off of a brewer’s calendar and his mind,” said Bennett. “Our new ProComm converter on the MAG meters is available with built-in verification that uses stored data to check a meter’s operation against its baseline. That’s true peace of mind. Our V-Cone Meters have been around and studied in applications that are a lot more rugged than what the typical brewery would put them through and have shown no shift whatsoever in their calibration coefficient.”

How Your Intellectual Property Can Make or Break a Merger

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intellectual property cover

By: Ashley Earle, Attorney, Dinsmore & Shohl

Like a good recipe, a good brand name for a beer, wine, or other beverage can drive sales. That recipe, distilling process, bottle design, or logo is all a form of intellectual property that helps define who you are in the industry. It can also be a defining and important part of any transaction.

  In today’s COVID world, breweries, wineries and distilleries of all types are doing what they have to in order to survive and one day thrive. Some are turning to mergers and acquisitions as potential strategies for survival and success. It’s important to know how your intellectual property (IP) can make a difference, good and bad, to a potential deal. Below are the five things you need to know about IP in a merger or acquisition. 

What Is IP?

  Before we get there, it’s important to quickly define the different types of IP that exist:

•    Trademarks: A trademark is the most common form of IP protection in the alcoholic beverage industry. It protects anything that functions as a source identifier, (product names, company names, logos like the NBC peacock, bottle or can designs like the Coca-Cola bottle, or even sounds like the ESPN tones). Trademarks can be registered and unregistered, though unregistered marks are limited in geographic scope.

•    Patents: This protects a unique invention (a brewing process, a novel distillation column), a unique design (bottle designs), or a unique plant (strains of yeast or grapes). Patents must be registered and issued to be enforceable, though pending applications will be relevant in an M&A deal.

•    Copyrights: Copyright protection arises automatically as soon as an original work of authorship is “fixed” into something tangible. Basically, once you draw the artwork for your bottle or can, write the code for your website, or draft up a piece of marketing material, it is protected by copyright. Registration affords several key benefits but is not required to claim ownership in a work.

•    Trade secrets: A trade secret is something that gives you value because it is secret. Examples include customer or vendor lists and recipes.

  Additionally, when you go through a merger or acquisition, you will often be asked to list out all of your domain names, social media, and in some cases, any software that is material to your business. It is important to make sure you keep a list of these assets in case an opportunity arises.

  Now that we’ve covered the basics, let’s dive into the top five things you need to know in a merger and acquisition when it comes to your IP.

What IP Do I (and They) Have?

  Start by taking an inventory of everything you have that is protectable – beer names, wine names, logos, artwork, packaging, unique brewing processes or recipes, social media accounts, and domain names – to name a few. This should include anything you registered, anything you are trying to register (like pending applications), and anything unregistered but material to your business. Disclosure schedules are used to list all of the IP and what is to be transferred in the transaction (if not everything). Be clear to fully disclose what you have without overstating.

  The same should be true of the other side. You should ask them to disclose all of their IP assets that will be a part of the deal, all the way down to their social media accounts and domain names.

  As you and the other side are pulling this together, you also want to collect all of your documentation to evidence the IP. This could include trademark applications and registrations, copyright registrations, patent applications, patents, email accounts, and social media accounts. You will also want to pull any licenses you have to use IP, independent contractor agreements regarding creation of IP, liens on IP (if applicable), and any documentation relating to disputes or claims of infringement involving your IP (if applicable). Make sure you have clear documentation of the chain of title (meaning who owned it at each point) from origination to present day.

Do Both Sides Actually Own Their IP?

  The next question you need to ask yourself in any deal is: Do we actually own that IP? The answer may not be as simple as you think. You need to be sure that all assets are owned by the company and not an employee, owner, or even a third party. A lot of companies don’t realize that if they hire an independent contractor to make something, whether a website, logo, or marketing materials, unless they have the contractor expressly assign the finished product to their organization, the contractor owns it. Employee-created works should automatically transfer to the employer, but it is still good practice to include an assignment in your employment agreements. 

  Ownership issues can derail or even terminate what would otherwise be a great deal. Make sure that the ownership of IP on both sides is clearly documented and validated as you move forward.

What Are We Agreeing to In the Deal Terms?

  Within the deal documentation, there will be a number of representations and warranties and indemnity provisions that relate solely to IP and the disclosures and transfers being made in the deal. This is why it’s so important to make sure you have your ducks in a row with your IP as you move forward.

  These reps and warranties will range from confirming ownership of the IP to promising your IP does not infringe the rights of others. You can also see reps and warranties that ask you to declare that your employees have not created any IP that is not owned by the company. Your legal counsel can help to finesse the reps and warranties to match your circumstances and protect you as best they can, but it’s important you ensure everything stated is accurate. A broken rep and warranty in a transaction can be expensive and arise after the deal is done.

  You may also be asked to indemnify the other side for any claims of infringement of the IP, even if you are selling your business to them and walking away. Typically, indemnity provisions should only last for a particular time period following the sale and have a few caveats of what does and does not trigger indemnity. It’s important to make sure you understand them and how they may impact you in the future.

  It’s also important that you understand what will happen to your IP or the other side’s IP after the deal is done. Who will end up as the owner? Who has control? Will any IP be left behind with either party? Are there any pitfalls with the IP that need to be addressed (like prior enforcement matters that resulted in Coexistence Agreements or liens)? Given the importance of IP to any business, it’s doubly important to understand what happens to the IP in the deal as you look to the future.

Were Things Done Right with the IP by Both Sides?

  While you want to believe all assurances a party makes in fostering the deal, both sides must do their due diligence. Did an employee copy and paste images from Google that are infringing someone’s copyright? Did you use unauthorized background music in a promotional video or advertisement? Did you see a great idea at a trade show and implement something similar, not realizing it was patented or trademarked? As the brewery, distillery, or winery grows and expands, so do the footprint and the risk for claims against you.

  Similarly, data privacy can be another pitfall. If any customer information is kept, such as names, birthdays, addresses, or credit card information, (or more abstract information such as IP address or use of cookies, beacons, and pixels), you have to be sure that this information is kept safe and confidential. Ensure there are no data breaches and never have been any breaches.

Likewise, if you are keeping any data, a clear privacy policy must be in place. Do not be tempted to copy and paste a privacy policy found online. The Federal Trade Commission (FTC) often comes down hard on businesses for having a policy that does not match what they are actually doing. Copying and pasting can lead to a policy that misleads consumers as to how you handle their data – and that’s a big problem.

A privacy policy can be fairly simple and straight forward: Explain what information you collect, where you keep it, how long you keep it, and how it is stored, and provide an option for customers to opt out (such as an email address to contact). The more information (and the clearer the information) the better – and when in doubt, ask for affirmative consent.

  With these five things in mind, you can approach a deal with confidence and find the perfect fit to expand and secure your brewery, distillery, or winery. When in doubt, consult your attorney – we’re here to help!

  Ashley Earle is an attorney at Dinsmore & Shohl who focuses on branding protection through trademark and copyright law. Dinsmore represents breweries, distilleries, wineries, cider companies and other alcoholic beverage producers in business, regulatory, intellectual property and litigation matters. Dinsmore attorney represent these entities in every stage of their business, from formation to operation to final sale or closure.  Ashley can be contacted at…513-977-8522 or ashley.earle@dinsmore.com