Category: Distillery

Brewing Social Media Success:

Cyndi

How to Use the ‘Gram to Maximize Your Craft Beverage Brand  

social media marketing

By: Chris Mulvaney, President (CMDS)

What three things do Tito’s, Blue Chair Bay Rum and Trillium Brewing Company have in common?  All three have mastered the ‘gram game and have boosted their brand success by putting out a consistent cross-formula of brand content, brand awareness and maximizing audience engagement across the ever-growing social media platform.

  Whether you are a craft brewer, startup spirit producer or global drinks company, your social media presence should be at the top of your priority list. But how exactly can crafters use Instagram to grow their business?

  Instagram is a visually appealing social media platform. In recent years, it has started to dominate Facebook in that it is not as overcrowded and expensive. The beauty of Instagram is that brands can still establish an organic relationship with their followers and can develop brand personas, becoming known for a certain tone, content and style. They can build their brand immensely just by being an active user. Also, the influencer market has never been so powerful for brand awareness.

Instagram Strategy

  Once you get a grasp of the platform, then you must define your social media strategy to gain the right followers and maximize engagement.

   This should include:

•   Increasing brand awareness.

•   Driving website traffic.

•   Increasing website engagement to generate leads and drive sales.

•   Increasing customer retention, engagement, and followers.

  How can a brand stand out in an increasingly competitive market?

•   Quality products, first and foremost.

•   Great marketing.

  After that, tell your brand story through photos, partnerships, video and human interaction. Think about what separates your product from others in the market. This isn’t something that’s achieved by one post, but over time, and means connecting your product to something much wider than the drink itself.

  For example, Mexican brand, Corona, understands the appeal of their beverage isn’t just the beer itself. A Corona and lime brings to mind vacations, beaches, relaxation and sun.

  They’ve fully embraced this as their brand, tying the image of plunging a fresh lime into a cold Corona to diving headfirst into the waters of a clear blue ocean.

Organic Media vs. Paid Media

  In the past, the goal of most marketers on Instagram tended towards growing a big following, then continuously publishing content that’s relevant to their brand and audience. One important point to realize, however, is that just because you have 1000 followers doesn’t mean every time you post all 1000 of them will see that post.

  In fact, the reality is a much smaller percentage of them will ever see your post and that’s where the term “organic reach” comes in.

Organic

  One of the most important things to understand about social media marketing is that the way companies can succeed on social media will be entirely dependent on whether they can create an organic experience for users.

  Organic reach determines how many of your followers will see your post without you paying.

This concept of organic reach is prevalent on Instagram since the algorithms used to determine who will see your content at any given time are based primarily on engagement.

  Tips to Get More Organic Reach:

•    Feed your audience with more value.

•    Upload at least two posts a day.

•    Make use of all the features (posts, stories, comments, hashtags).

•    Use attention-grabbing headlines.

•    Use paid sites like Sprout Social to understand the industry atmosphere and create an ongoing dialogue with your audience.

Paid Distribution

  Due to changes in organic reach over the years, companies have been forced to rethink their social media strategies, and in many cases begin exploring other avenues to reach their users on social media, specifically through paid distribution.

  Utilizing paid channels has a number of benefits because it can target users based on demographic information, behavior and interests. Because of this, marketers are able to drill down to specific audiences.

Seven Steps to Success

  Gaining followers and engagement isn’t about simply posting once a week and hoping for the best. In fact, a successful strategy on Instagram should include concrete goals, an ongoing content calendar, a scientific approach to who you’re trying to reach and how many people you expect to interact with.

  The following are seven important steps to grow your brand on Instagram.

1.  Be consistent:   It’s important to define a core strategy for your brand. It should be consistent across all channels and the narrative should be easy to follow. You’ll need to balance product content, campaign content and brand content to be most effective.

       How to maximize consistency on the Instagram platform:

•   Post stories often.

•   Like and comment on posts.

•   Run a contest.

•   Post engaging captions.

•   Offer free advice or information.

•   Post during active hours.

•   Use Instagram ads (paid distribution).

•   Have a strong visual brand strategy.

2.  Use clever alcohol hashtags:  Using clever alcohol-related hashtags can help get your brand trending online or inspire a sense of community with your customers.

        Studies have shown the optimal number of hashtags to use in Instagram consistently is seven. However, even more important is to define your hashtags, include them on packaging and don’t change them too often to make sure fans can refer to you easily.

3.  Use Influencers:   The influencer market has never been so powerful. There are hiring sites for influencers that will allow you to enhance your brand and vision through them. It’s a great way to promote engagement because it boosts brand awareness fast and increases your potential to go viral.

4.  Keep the “social” in social media:  A great way to inspire your fans is to use social media to inspire real world engagement. Your brand will get the most out of social media by catering to the interactive experience. It’s important to be part of the conversation around social events which will resonate with your market – both in terms of pre-planned campaigns and via reactive content.

       Just having a social media account is not enough. Successful brewing and spirit brands actively encourage their fans to engage with their accounts. Many have received some serious engagement by re-posting user generated photos.

       Whether you’re sponsoring a national event, or you can be reactive in a more local way, providing up-to-date content and being part of the conversation will help to keep your brand relevant.

5.  Offer a Backstage Pass:  Take your followers behind the scenes. Let your audience peek behind the curtain and see how their favorite drinks are made. Post photos of the start-up days, of the staff living life and having real experiences.

6.  Connect to a Cause:  Just as social media users don’t only care about likes and clicks, drinkers don’t care solely about their alcohol. More and more, consumers care about the ethics behind the products they’re buying. Remember, they are buying a brand.

       For example, New Belgium Brewing Company put meaning behind their message with their #FindingCommonGround campaign, which not only connects their outdoorsy aesthetic brand to a public land cause, but raised over $250,000 for charity.

        It’s worth the investment, on multiple levels, to put some of your efforts into giving back.

7.  Partner with other brands:   A drink is better with friends. Likewise, a brand is better in a partnership.

       Consider doubling up your power for promotions with a complimentary brand. Partnerships are especially good on Instagram for giveaways, allowing you to expand your offer and reach two different audiences.

       Make sure to find a brand aligned with your goals, and of similar size to get maximum value from a partnership.

Don’t Make These Common Instagram Mistakes

  Common mistakes brands can make on Instagram can hurt them exponentially. Here are some important ones to avoid:

•    Sharing more reposts than original content.

•    Taking too long to respond to comments.

•    Favoring quantity over quality.

•    Misusing hashtags.

•    Buying likes and fake followers.

•    Not paying attention to analytics.

Recap

Craft beverage companies have a product that is in demand, but they are working in an increasingly competitive market. Digital marketing allows them to stay ahead of the game through creative branding and audience engagement.

As a recap, here are some main social media tips as discussed above:

•    Get to know how the Instagram platform works.

•    Define your social media strategy.

•    Tell your brand story.

•    Utilize organic search and paid distribution.

•    Be consistent.

•    Use hashtags.

•    Use influencers.

•    Inspire real world engagement.

•    Take your followers behind the scenes.

•    Connect to a cause.

•    Partner with other brands.

•    Keep it going; don’t stop!

The Last Gulp

  If craft beverage companies hope to engage consumers and boost their sales in this competitive market, they have to adopt a social media strategy that ensures success. While there is no cookie-cutter formula to success on Instagram, there is a pattern that works across the platform if utilized properly.

  The realness is in the engagement and knowing how to maximize your followers and their engagement. So keep thinking: just how can you brew up a social media campaign as unique as your beverage?

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

Enhanced Yeast Strains Follow Distilleries’ Desires for New & Unique Profiles

Cyndi
alcohol in distilling process

By: Gerald Dlubala

The world of yeast strains is large, diverse and ever-changing. Used in commonly recognized applications, including baking, brewing, wine production, plant care, cosmetics and dedicated spirits production, the strains can contain similar attributes. The differences come in how they react under varying conditions and temperatures, and those are both noticeable and noteworthy.

Experimentation and Exploration Contribute to New and Enhanced Choices

  “These days, craft distillers are experimenting with virtually everything to provide differentiation in their spirit, and that means with yeast strains, too,” said Denise Jones, Technical Sales Support Manager with a focus in fermentation for distilling for Fermentis, experts in the fermented beverages industry.

  “If it converts starch into sugar, any yeast can theoretically be used to make a wash that can become distillable alcohol. Variations in yeast strains produce varied metabolic byproducts that translate into different congeners in the fermentation and final spirit post-maturation. Some distillers are trying different individual or combinations of yeasts, including Belgian ale yeasts, traditional American ale yeasts, or even Champagne yeasts to ferment their mashes. Individual fermentations can be distilled as a blend or be distilled individually and blended later. When you consider how these then respond to different process conditions, temperature conditions, the initial sugar concentration, inoculation rates, nutrition values and more, either individually or in combinations, you can significantly affect the behavior of some yeasts and, consequently, their flavor profile.”

  Jones said that distillers play a crucial role in yeast strain development by selecting and successfully using strains adapted for the products they want to manufacture. Yeast strains prove to be successful and reliable by distillers regularly practicing their craft while continuing on their quest to manufacture a product that offers unique characteristics, including sensory values, fermentation speeds, efficiency in sugar conversion and more.

  “Distilling yeasts do possess similarities to those commonly used for wine, beer and cider. But many of the distilling strains have properties that keep the fermentation progressing in the more stressful and challenging sugar substrates present in distillers mashes and musts. Distiller’s yeasts are more efficient in converting sugar into alcohol, meaning the final fermentation is faster and drier with fewer residual unfermented dextrins left over. These strains work at a higher temperature and ferment more quickly, typically within 72 hours versus a beer fermentation that can last up to 14 days,” said Jones. “Additionally, yeasts that work quickly are advantageous to distilleries that look towards higher efficiency to maximize production and capacity within the shortest timeframe. Some strains address the need for greater heat tolerance, furfural tolerance, or the need to adhere to enzyme use regulations. Genetic compositions allow these strains to ferment larger sugar molecules and increase congener development that translates into more desirable aromas and flavors in the final product.”

  “For example,” she said, “to produce whiskey in Scotland, the use of enzymes is not allowed, so strains that can ferment complex sugars are required. Whiskey also requires an aging process in barrels and some specific congeners produced by yeasts. Rum uses different types of cane sugar substrates, ranging from exhausted molasses with a high non-fermentable solid content to juice directly extracted from the cane. They are different worlds in terms of substrates, requiring strains that resist specific conditions. In short, we cannot pretend that a strain selected for wine and that has evolved in that environment can efficiently ferment a rum or whiskey. Likewise, a strain used to ferment sugar cane juice cannot properly ferment exhausted molasses. But cross-functionality is often possible and encouraged as an important tool for innovation.”

  “Our distiller’s strains have been selected for their tendency to be robust in high-stress situations that can alter and restrain sugar metabolism of the cells. The distiller’s choice of strain can depend on different conditions related to heat development, fermentation substrate conditions, or desired production efficiencies. Fermentis yeasts are adaptable to various substrates under different conditions and can ferment in multiple mediums. In many cases, multiple strains offer the right characteristics to ferment a specific wash for a spirit. We also offer strains that demonstrate the ability to ferment just about any sugar they encounter. Having choices helps distillers by offering a wide range of possibilities when selecting a yeast for their unique facility and specific type of fermentable sugar substrate. Some distillers will use the same strain on many different products helping them streamline their protocol systems and manage their supply purchases.”

  Included in those strain choices are the SafSpirit and SafTeq lines. SafSpirit yeast strains are selected to give a range of choice for an array of different sugar substrates to help the distiller more easily reach their goals. SafTeq yeasts are primarily chosen to ferment agave-based musts, which are very rich in fructose and can have larger amounts of furfural and saponin, both considered toxins and inhibitors of the fermentation process. Providing strains that tolerate these toxins helps the distiller achieve complete fermentation of the agave sugars.

  “Fermentis offers a wide range of yeast strains for the distilled spirits world,” said Jones. “Our yeast’s ease of use and directed capacity to ferment various sugar substrates give distillers many choices with regards to their fermentation challenges while keeping the process as simple as possible. Understanding that no facility or situation is the same offers Fermentis an opportunity to assist the distiller in finding the best yeast and protocol to reach their goals. Every distillery has different equipment and support services for fermentation, so each producer must consider fermenter size, shape, cooling capacity, desired alcohol targets, intended flavors and desired aroma. Then, having a yeast supplier that can successfully assist you using these parameters ensures that your production expectations are met while saving time and money.”

  Jones said that many distillers come to Fermentis aware of their production capacities and are absolute in what they want as far as fermentation goals. Others will have a general idea but are searching for the right product to develop new functionality and flavor ideals. Most want to find a way to differentiate their product from others by choosing a strain and protocol that provides uniqueness. All of these methods are successful and can result in a significantly different product from other market offerings.

  “Fermentis will always be there to offer help, advice and information to steer a distillery towards a successful product delivery,” said Jones. “We are finding that many fermentations still won’t have the complete nutrition needed to have proper growth and metabolism. Finding the yeast strains and derivatives that work well with nutritionally deficient sugar substrates seems to be a general need within the industry. Fermentis has taken the lead in producing yeast-derived products that enhance those sugar substrates lacking the necessary nutrients needed for optimal yeast performance. Then, once a distiller becomes accomplished in fermentation, they’ll usually begin to consider flavors and aromas. The aroma of spirits consists of several hundreds of flavor active compounds produced at every stage of the process. Most of these substances are yeast metabolites produced during the fermentation process. Favorably enhancing the development of these metabolites seems to be the trend in spirit designed fermentations.”

  Jones told Beverage Master Magazine that Fermentis adds incredible value to each of their customer’s fermentation needs by consistently providing their technical and sales managers with the latest research information from their France-based research and development facility, including intuitive conclusions and details about each strain within a variety of different fermentation situations. With this information, distillers can make the right choices in yeast strains to reach their fermentation goals.

Experience and Expertise Lead to New and Successful Adaptations

  Reaching fermentation goals is also a priority of Maryse Bolzon, Global Craft Distilling Manager of Lallemand Biofuels & Distilled Spirits, a global leader in the development, production and marketing of yeast, bacteria and specialty ingredients.

  “In a distillery, whatever the size, the only way to produce ethanol and get that desired distinctive and unique aromatic profile is to choose the right yeast strain and use it in the correct conditions during fermentation,” said Bolzon. “One of the magical qualities of yeast is that you can make changes within the conditions of fermentation while using the same yeast and get noticeably different results. Subjecting the same yeast strain to different temperatures or different feedstocks will give similar yet distinctively different aromatic profiles to your spirits. Distilling yeast uses various types of sugar depending on the raw materials used and can reach higher ethanol content, ferment in stressful conditions, and develop deep aromas and flavors. Ultimately, the strain you choose should be aligned with the substrates used and under what conditions your fermentation occurs.”

  For example, Bolzon said that in the production of whiskey, scotch and bourbon, selected yeasts should work well on grain under a wide range of temperatures, and as long as the substrates are similar, you can use the same strain of yeast with all of them. Conversely, different substrates, like those in rum, produce different sugars, requiring different yeast strains. If you work with 100% malted grain at 34 degrees Celsius throughout the fermentation process, you couldn’t use the same yeast strain when working with molasses under the same conditions. Rum uses glucose, fructose and sucrose, while whiskey will have glucose and maltose.

  “Saying that, we understand how important it is to take the time to research and choose the correct yeast strains by researching and matching them with the types of sugars that they ferment,” said Bolzon. “Some ferment glucose and fructose, others fructose, maltose and maltotriose. Some will never ferment fructose under any conditions. There are a lot of choices, so consideration is always given to the spirit being crafted and the substrate in use, whether it’s grain, molasses, agave, syrup, fresh juice or something else, and we always look at the distillery’s fermentation and distillation conditions.”

  A yeast supplier should be both a partner and assistant in the craft distiller’s process. They should understand the distiller’s identity and branding needs as much as the fermentation process and distillation conditions to provide the appropriate yeast strains to fit the distiller’s needs.

  “Of course, choose a supplier that will provide dedicated technical support,” said Bolzon. “Within LBDS, our technical support is the cornerstone of our identity, with all team members having practical backgrounds in fermentation and distillation. We work closely with craft distillers to ensure that the yeast, nutrients, enzymes and bacteria chosen will provide the desired results. Our yeasts are stored in warehouses under optimal conditions, meaning no heat or direct sunlight. Our yeast is distributed in a dried state, meaning that we have removed the water, including the membrane. The membrane is critical to where the sugars, vitamins and minerals enter and the ethanol and other metabolites exit. If these exchanges do not work optimally, the yeast will not work properly and cause weak, sluggish or stuck fermentation. Making your yeast happy is always the key to successful fermentation, so if you’re working under potentially stressful conditions and want higher ethanol content, we recommend rehydrating the yeast before adding it to the fermenter. After purchase, the yeast should be stored in dry areas away from heat or direct sunlight. Because our yeast is sparged with inert gas and vacuum packed, you have up to three years shelf-life storage capability as long as the vacuum packaging remains intact.”

  Bolzon said that LBDS is always happy to work with the distillers and assist them with producing dedicated spirits. Some distillers know exactly what they want in a yeast strain, others ask for help and support in developing their spirits, and others already have the knowledge but prefer to collaborate.

  “I think as an industry, we cover the basic needs of distillers, meaning good fermentation kinetics, quality stress resistance and exceptional aromatic profiles,” said Bolzon. “But within LBDS, we believe that a distinctive spirit needs more than the basics. Perfection comes in the details, so we are constantly working to make improvements and offer new and stronger yeast strains that bump up bacteria synergy, impact nutrition and deliver more distinctive profiles. Every day, we have new questions about fermentation on specific substrates like coconut juice, exotic fruits, various syrups and more. These types of questions push us to a better understanding of raw material characteristics, leading to better yeasts, processes and partnerships with distillers.”

  “To me, the most important thing is to make sure that the craft distiller receives quality technical support when needed to assist not only in yeast choices but also on processes like fermentation times, temperatures, nutrition information, and distillation procedures,” said Bolzon. “Within LBDS, we have Research & Development labs in the United States and Canada. We focus on the kinetics and aromatic profiles of our current strains. We work on adapting new strains to be successful under stressful conditions, and we work on providing strains that work under higher temperatures, benefitting the craft distiller that finds the cost of fermenter cooling prohibitive. We follow current trends, including the development of strains that enhance the aromas of distilled spirits.”

  “In the end, the most important thing for us as a yeast supplier is to understand what the distiller is looking to accomplish with their product,” said Bolzon. “After all, that spirit will reflect their personality, brand and identity, so we must do all we can to help them with their goal of distilling a distinctive, unique product.”

Freeland Spirits:

Cyndi

Women-Inspired, Women-Owned, Women-Centric

2 women holding beverage bottle

By: Becky Garrison 

Upon stepping into Freeland Spirits’ northwest Portland distillery, I feel like I’m walking in a spring meadow even during these gray Portland days. I’ve entered into a space that has a different feel than your typical distillery. Freeland’s medium blue exterior and eggshell interior lift my spirits and give me a serene vibe, as though I’m in a yoga studio. Their signature teardrop glass bottles contribute to this warm and relaxing feel. The comforts extended to the restrooms, which are stocked with feminine hygiene products and offer changing tables, items seldom found in the distilleries I’ve frequented.

  As Freeland Spirits founder Jill Kuehler reflected, these design aesthetics symbolize the women-centric nature of this distillery. “We worked with a team of female designers to take the aesthetic of our model and the values we represent and turn it into physical spaces. I feel like every com-ponent really matches who we are.”

  Take, for example, that teardrop bottle design. Obviously, Kuehler cannot be present in a liquor store to explain the distillery’s unique attributes whenever a customer peruses bottles of spirits. Hence, she wanted to design a bottle that could tell the distillery’s story for them. Kuehler worked with a designer in Brooklyn to create the design she feels pays homage to Oregon agriculture, born from months of Pacific Northwest raindrops. She also wanted to recognize the Teardrop Lounge in northwest Portland because the owner was very helpful when they first started out.

  Prior to founding Freeland, Kuehler ran Zenger Farm, an educational farm in east Portland that teaches approximately 10,000 kids annually where good food comes from. From this experience, she dreamt of launching a distillery with a focus on producing spirits using the best Oregonian products while also celebrating the women pioneers who make this region unique. While drink-ing Kentucky Bourbon with her friend Cory Carmen, owner of eastern Oregon-based Carmen Ranch, Carmen expressed an interest in incorporating small scale grain production at her ranch along with beef and chickens. She offered to grow the rye if Kuehler made Bourbon from it.

  Thus, Freeland Spirits was born in 2017. Kuehler chose the name Freeland because it’s her mother’s and grandmother Meemaw’s last name. She grew up in Meemaw’s garden and observed how, as the family’s primary breadwinner, Meemaw broke through many boundaries. A “good Christian woman,” Meemaw never touched alcohol. So, when asked how Meemaw would respond to having a distillery named after her, Kuehler laughed. “I think she’d roll over in her grave, but she would secretly be proud.”

  From its inception, the distillery highlighted women producers and distillers. For example, Kuehler brought on board women like Molly Troupe, who has the distinction of being the youngest master distiller in the United States. According to Kuehler, “Molly’s Master’s in distilling from Scotland is worth noting. At the end of the day, it was her credentials, creativity and desire to create the very best spirits, not just her gender, that drew me to her. She was the very best person for the job.”

  All other key staffers are women, though they occasionally hire men. “Our founding story is launched by women, but we’re for everyone,” Kuehler said.

  Launching a women-owned and operated distillery proved to be brutal in terms of securing financing. Only 2% of venture capital funding gets invested in women-owned businesses. Also, the commercial real estate market remains dominated by men.

  “You’ve got a lot stacked against you, particularly when trying to do something so capital intensive,” Kuehler said.

  Initially, Kuehler set up shop in space offered by Aria Gin. Since Ryan Csanky distilled his ini-tial batches of gin in space provided by Bull Run Distillery, he delighted in helping another local distillery by doing likewise. Since opening Freeland Spirits in 2018, Kuehler continues this tradition by helping other distillers launch their own small-batch craft spirits.

  While waiting for its first batch of Bourbon to mature, Freeland Spirits distilled and marketed Freeland Gin, which is crafted by hand in small batches. Kuehler found herself drawn to gin due to the infinite number of botanicals one can play with to develop a unique spin on a classic spirit. She sourced fresh botanicals from local farmers’ markets and area farms, such as Vibrant Valley Farms, based in nearby Sauvie Island.

  “For us, it was creating a gin that reflects what Meemaw’s garden gin would taste like,” she said.

  Freeland Gin uses 19 botanicals distilled using two different techniques. Fourteen botanicals are traditionally distilled using a copper pot column still, nicknamed Hell Bitch, while the remaining botanicals are cold distilled. This difference allows for the preservation of delicate fresh ingredi-ents like cucumber, rosemary, mint and thyme. These fresh ingredients are still macerated in high proof alcohol before being distilled in small batches using a Roto Vap.

  In November 2018, the distillery launched Freeland Bourbon, a spirit that pays homage to the South, and Meemaw, in particular. Charred American oak barrels produce notes of caramel, va-nilla and spice. Then, the Bourbon is finished for five months in Elk Cove Pinot Noir barrels, which adds an element of the Pacific Northwest terroir to the whiskey.

  Next, Kuehler added Freeland’s Geneva to the lineup, a spirit inspired by genever, gin’s Dutch grandmother. The geneva showcases Oregon rye with an array of savory botanicals and hints of Willamette Valley hazelnuts, along with citrus-forward products designed to bring out some of the rye flavors.

  Freeland’s newest offering is Freeland Dry Gin, a navy-strength London Dry gin, which Kuehler made for “those strong gals who desire an equally strong gin.” Its concentrated and bold taste leads with juniper followed by a hint of citrus and notes of green olive, Pacific Northwest pine forest and mulled spices.

  The distillery recently joined the canned cocktail craze with its Gin & Tonic canned cocktail. Freeland Gin is paired with Portland Syrups Rose Tonic for a bright citrus sensation along with fresh herbs like juniper and roses. This cocktail was developed in collaboration with Freeland’s bar manager and bartending team and became a local favorite, receiving high marks from The Portland Mercury and other outlets. In 2020, another canned cocktail became available – a French 75 made using Freeland’s flagship gin and Chehalem Chardonnay wine.

As Freeland expanded, it continued with a womencentric focus. In 2019, Lee Hedgmon came on board. Hedgmon is a native Oregonian and woman of color who began brewing in 2004 with a focus on fermented beverages such as beer, mead, wine and cider. She also founded The Barreled Bee, a fermented honey, which is sold in the Freeland Spirits bottle shop.

  The distillery also launched Freeland Free Spirits, a celebration of female-identified Oregonians who are breaking the glass ceiling. Each month, they choose a person who works with Freeland’s tasting room manager to design a specialty cocktail for that month. All proceeds from the cock-tail go towards the person’s charity of choice. Currently, portions of this program have been put on hold due to Covid-19.

  Another women-centric collaboration is the bestselling cocktail kit Queen RBG (rose, bergamot, ginger), a tribute to the late U.S. Supreme Court Justice Ruth Bader Ginsburg, which benefits Planned Parenthood Advocates of Oregon. Other local collaborations include partnerships with Kate’s Ice Cream, Portland Bloody Mary, Portland Soda Works and Pie Spot.

  For whiskey connoisseurs, Freeland Spirits launched a private barrel program where someone can pay for a barrel, and when it’s is ready, they get the first 24 bottles that come off that barrel. Other offerings have included whiskey making and cocktail classes.

  While the physical distillery remains closed to the public due to the global pandemic, Freeland Spirits continues to offer curbside pickup of spirits and cocktail kits in Portland, along with ship-ping throughout Oregon. Freeland Spirits can also be found in select stores in Washington State, California, New York and Illinois.

For more information, go to their website…http://www.freelandspirits.com

Ontario’s Strict Liquor Laws

Cyndi
bottled beers in a grocery stall

By: Alyssa Andres

In Canada, each province is governed under its own liquor laws. In the province of Ontario, there is a multitude of guidelines, fees and licenses required to successfully become a producer or supplier, many of which are not found in other provinces across the country. The restrictions, guidelines, and costs associated with the production, importation and sale of alcohol in the province impact the market for producers and consumers alike. By enforcing such strict laws, the Ontario government limits the province’s ability to showcase its top quality products and dissuades international suppliers and manufacturers from importing their goods from other regions. 

  Manufacturers in Ontario must prepare for substantial start-up costs and to spend a lot of time in the initial phases of business planning before starting production. Separate licenses are required before producing, selling and storing alcoholic beverages, and packaging guidelines, as well as chemical analysis of each product, are required once these licenses are obtained. For suppliers, it means facing mark-ups of well over 100% and tight restrictions on the import, distribution and sale of products. For consumers, it means selections tend to be limited, prices are higher than average and there are very few places to obtain alcoholic beverages.

  The body controlling the alcohol, tobacco and cannabis industries is the Alcohol and Gaming Commission of Ontario. This body is responsible for forming the Liquor Control Act and administering liquor licenses beyond the federal license required to produce alcohol in Canada. The AGCO also oversees most aspects of alcohol sales and service in Ontario. This means they not only control the manufacturing of alcohol but also the distribution and sale of any kind, including bars, restaurants and private events.

  The initial step in becoming a brewer, distiller or winemaker in Ontario is to obtain a federal license to manufacture alcohol in Canada. According to the Government of Canada website, one must prove that they are of legal age and have sufficient resources to conduct a business before applying for the license, which does not carry with it any fees on its own. This license allows producers to manufacture alcohol in bulk, but producers must pay an excise duty once the alcohol is packaged to store it on-site. In Canada, as of April 2020, spirits containing more than 7% alcohol by volume are subject to an excise duty of $12.61 per litre of absolute ethyl alcohol. The only way around paying an excise duty at the time of packaging is to apply for an excise warehouse license that allows manufacturers to store non-duty paid packaged spirits for an extended period.

  Once a producer is licensed by the federal government to produce bulk alcohol, the AGCO requires a separate manufacturer’s license to sell the wine, beer or spirit within the province. The AGCO has strict guidelines surrounding where alcohol may be sold in the province. The Liquor Control Board of Ontario is the main outlet for alcohol sales in Ontario. There are 666 LCBO stores across Ontario responsible for providing the Ontario public with spirits, wine and beer in quantities of less than 12 units per case. A separate chain known as The Beer Store, also mandated by the AGCO, provides Ontarians with cases of beer. If a producer or supplier does not have this license, they will not be allowed to sell their product in the province.

   In 2017, Ontario started allowing a limited number of grocery stores with proper licensing to carry beer and wine, but, according to the AGCO website, these premises must also sell a variety of food products that must occupy at least 10,000 square feet of the retail space. Therefore, only large chain grocery stores are eligible for these permits, and there are only about 450 grocery stores that carry alcohol in the province.

  For breweries and distilleries to operate retail shops out of their own facilities, another license must be issued, even once producers have successfully obtained a manufacturer’s license. Yet another license is required to operate a “Tied House” or restaurant facility out of a brewery or distillery. Each of these licenses carries with it separate fees and must be renewed every two years. Since many Ontario breweries and distilleries are in remote towns across the province, the best way to get their product into the hands of the general public is to apply to have them on the shelves of the LCBO.

  According to the LCBO, they review over 50,000 submissions annually from producers and suppliers trying to sell their products through this system. Even products already approved must reapply for the license every two years. Per the AGCO licensing guide, to be eligible to apply for a Liquor Sales License, producers must submit their federal license to manufacture, a registered business name, a summary of their business plan, including detailed floor plans of their facilities, a marketing plan and images of the bottle/packaging of the product. The roughly nine-week process of approving product submission ends with an LCBO chemical analysis. This LCBO analysis is done on every active product on the shelves once a year, at the suppliers’ expense, to ensure quality. Once approved, the product then has to go through label and packaging reviews.

  The LCBO also has extremely specific requirements surrounding the labeling of not only the packaging of alcoholic beverages but also on shipping containers and cases. While many provinces follow general Canadian guidelines for packaging requirements, Ontario has developed its own set of rules. A 64-page document entitled LCBO Product Packaging Standards dictates not only what information is present on the bottle but also gives incredibly detailed guidelines on everything from the size and placement of this information to the “print contrast standard.” If a product doesn’t adhere to these standards, a producer must go back and have the label or shipping package redesigned.

  Once the product makes it to Ontario liquor store shelves, the LCBO must adhere to the LCA standards for minimum pricing. This means, according to the LCBO Pricing Standards Guide, updated in April 2020, a 750mL bottle of Canadian whisky sold by a supplier to the LCBO for $6.16 and charged a federal excise duty of $3.71 ($12.61/LAA) would end up on retail shelves for $27.50 after being marked up a standard rate of 139.7%. Of that total revenue, $16.17 goes to the Ontario government and $4.92 to the Canadian federal government, with only $6.21 making it to the supplier after a $0.20 container deposit. Manufacturers must adhere to this uniform pricing even when selling from their own bottle shops, with most of the revenue going to government bodies.

  These taxes and guidelines mean the selection and quality of products on the shelves at the LCBO are not always impressive. Many international producers will not bother applying at all. Many of the province’s most talented producers are too small and cannot afford to. As a result, the representation of Ontario beer, wine and spirits in the LCBO doesn’t always showcase the incredible quality of the local industry.

  However, the Ontario government has made some changes to its liquor laws this past year to aid businesses in the food and beverage industry that have struggled with closures and other factors related to the COVID-19 pandemic. The government started allowing restaurants and bars to sell sealed alcoholic beverages for takeaway. They also amended a law prohibiting alcohol delivery to private residences, allowing third-party services such as Uber Eats to deliver liquor from restaurants without a special license. These laws, originally considered temporary, have become a permanent amendment to the Liquor Licence Act as they encourage consumers to support local sources when purchasing alcohol for their homes.

  For a brief moment, on December 4, 2020, the LCBO attempted to offer this same delivery service from its stores by pairing with SkipTheDishes but was met with serious backlash from local restaurants who are now relying on alcohol takeout and delivery to pay their bills. As a result, on December 6, 2020, the LCBO paused this initiative.

  As the COVID-19 pandemic rages on and the entire province of Ontario remains in lockdown until at least January 23, 2021, the Government of Ontario will have to continue making adjustments to its rules and restrictions to allow businesses in the province to continue to operate. The hospitality industry has been one of the hardest hit by pandemic restrictions, with most indoor dining in the province’s major cities suspended for most of the year. Those allowed to operate have been limited to 50% capacity and forced to close by 9:00 p.m. each night. This means the licensee sale of alcohol dramatically decreased in 2020. There are many businesses in Ontario that are depending on government subsidizing to stay in operation.

  As the AGCO and the federal government continue to collect from the soaring sale of alcohol in Ontario, while manufacturers, suppliers and licensees in the liquor industry continue to suffer, the province’s small businesses rely on the provincial government’s aid. It is the hope that as the world evolves with the COVID-19 pandemic, so too will the laws surrounding liquor in the province of Ontario.

Ontario Craft Spirits

Cyndi
distilling equipment in a facility

By: Stuart Laidlaw

For over a century, Canadian liquor meant one thing: rye whisky. But in the early 2010s micro-distilleries started popping up across Ontario, focusing on high-quality, locally produced spirits that tell a story about the communities they come from. Today there are more than 30 craft distilleries in Ontario, producing millions of litres of gin, vodka, white rum, single malt whisky, and, of course, rye. But as the public’s thirst for locally produced drinks grows, distilleries are starting to test the waters with more adventurous, niche products.

  Dillon’s Small Batch Distillers was a founding member of Ontario’s current gin boom, and was an early mover in this new wave of Ontario craft spirits. Founded in 2012 by Master Distiller Geoff Dillon, they opened with a pair of gins, a white rye and a vodka, as well as Ontario’s first homegrown cocktail bitters. At that time, bartenders in the province’s burgeoning craft cocktail scene were keen to get their hands on local spirits that told a story about where they themselves were from. Nick Nemeth, at the time a Niagara-area restaurant manager, now Senior Manager for Beverage Development at Boston Pizza, recalls visiting  Dillon’s Distillers in fall 2012, pre-opening: “What was great about visiting Dillon’s from the onset was that, even though there were other Ontario craft distilleries already, they were experimenting with new spirits and flavours in a way that no one else was at that point.”

  Licensees unexpectedly became a big market for Dillon’s from day 1. “I was shocked by the amount of attention and excitement in the licensee scene,” says Geoff Dillon. “I was excited about making pure, real rye whisky, that was my big thing, that and gin; and the licensees’ [interest]…changed the whole business immediately.”

  In the intervening years Dillon’s has added sweet vermouth, absinthe, black walnut amaro, bitter lemon aperitivo, cassis, peach schnapps and golden plum schnapps to their collection.  Craft cocktail culture continues to inform the product range at Dillon’s. “Bartenders are the ones who have their fingers on the pulse,” says Geoff. “That’s why Adam D’Intino [Dillon’s Sales Manager] is so important. He’s nicely dialled in with what’s going on in the scene, and it really is how we decide what we’re doing moving forward. That’s probably where all the amaros and fun things came from.”

  The amaro that Geoff mentions is his Black Walnut Amaro. It is something of a benchmark for the kind of progressive local spirits that Ontario is starting to produce: an old-world style, made unusual and new by focusing on locally sourced ingredients. “We try to use stuff that we have. My house next door’s got a bunch of big walnut trees,” says Geoff. “We’ve got all these walnuts that fall and we want to get rid of…The community gets together and picks up all the walnuts, and dumps them,” he continues. “I love walnuts. My dad [Peter Dillon, now Head Distiller] is obsessed with bitterness and he loves that pith of the walnuts. So maybe six years ago, we told our neighbours to drop them here if they want. We threw them in 95% ethanol on the pith and let them sit there for two years, and what came out was this incredible bitter, pithy, pitch black liquid.” They blended it with their sweet vermouth base and, after some trial and error, hit on a unique liqueur that tastes smoky, herbal and bittersweet – clearly an amaro, yet unlike anything else.

  Local ingredients play a critical role in everything Dillon’s makes. Its Unfiltered 22 Gin is distilled from locally grown grapes, and their other spirits are distilled from 100% Ontario-grown rye. Their Cherry Gin, Peach Schnapps and Golden Plum Schnapps are all made with locally grown fruit too. Nemeth, reiterating Dillon’s importance in the early days, says, “Other [local] craft distillers 66 Gilead (now Kinsip) and Still Waters…were really only focused on whiskies, whereas Dillon’s was working with local fruit and botanical spirits way more than anyone else.”

  One factor that has contributed to both the number of distilleries and the increased variety of artisanal spirits has been the launch of Niagara College’s Teaching Distillery. Opened in 2018, it looks to have an impact on Canada’s spirits landscape similar to that of the college’s successful Teaching Winery. Students in the college’s Artisan Distilling diploma program are given the opportunity to put their education to practical use throughout the eight-month-long course. They gain valuable hands-on experience with every step of the distilling process, whereas in other programs, students spend about one week in a working distillery. Here again, Dillon’s stamp is indelible: Geoff Dillon helped to write the curriculum, Head Distiller David Dickson was formerly Head Distiller at Dillon’s, and students from the program tour Dillon’s Distillery every semester.

  Although the Teaching Distillery is only two years old, it is already bearing fruit. In 2019 they released their first student-made spirits, including an eau de vie made with grapes grown by the college’s Teaching Winery. And last year, they released their first barrel-aged spirit, a dark rum, followed by an escubac (a long-forgotten type of botanical French liqueur). Graduates of the program have also started to pop up at other distilleries and to start their own ventures, with the Teaching Distillery acting as an incubator for new product ideas. Greg Junop, one of the team who developed that escubac, is now Head Distiller at Niagara Distillery in Niagara Falls. Craig Mann, previously a coffee roaster and café owner, recently graduated from Niagara College and is set to open Manns Botanical Spirits. His inaugural product? A white tea gin made with a tea he was familiar with from his previous career, based on a recipe he experimented with while studying at the Teaching Distillery.

  Still, there are barriers to new spirit producers that are inhibiting growth in Ontario, and forcing the province’s distilleries to focus primarily on the most profitable products. The most obvious is the taxation of spirits. For a bottle of gin that retails at $40.00, $18.37 is paid as tax to the province. Another $9.46 is paid to the Federal Government, leaving the distillery with $12.17 to pay its bills and turn a profit. It is no wonder that micro-distilleries have been reluctant to make more niche products like amaro or aperitivo. It has not prevented distilleries from exploring less well-known drink styles – recent releases include spirits as diverse as saffron liqueur, pastis, Shochu and dry vermouth – but it does present an unnecessary obstacle to experimentation.

  Of course, no discussion of obstacles in 2021 would be complete without mentioning the ongoing Covid-19 pandemic. It has been devastating for the food and beverage sector, with one result being that distilleries, breweries and wineries in Ontario have lost most of their restaurant and bar sales. For operations that rely heavily on those sales accounts, it could have been disastrous. But one of the advantages small distilleries have is the ability to pivot quickly. In early March, Dillon’s committed its stills to the manufacture of sanitizer and disinfectant, leading Ontario’s micro-distilleries in an effort to fill the overwhelming immediate demand, even offering it for free to frontline healthcare workers and other essential services.

  The pandemic did have a positive effect on one particular Dillon’s product: their bottled Negroni . “When we released the Negroni two-and-a-half years ago, it was too early. We thought it was going to blow up and change the world,” says Geoff. The landscape has changed rapidly though. “We’ve sold very little of anything else to licensees,” he laughs. “But we’ve set volume records just selling Negronis. A palette a week was just going to licensees.” Dillon says that it was all mom-and-pop Italian grocery stores and restaurants beside parks in Toronto where, all summer long, people could just crack open chilled, single-serving Negronis to drink outdoors. In fact, it has been so successful that Dillon’s plans to make bottled cocktails a bigger part of their program. “That’s the future,” says Geoff. “We’ve got four or five new ones coming out this year. Most of them are classics, but we’re going to do our own spin on the classics using local cherries, strawberries and that kind of thing.”

  In a marketplace where ‘ready-to-drink’ (RTD) canned cocktails and hard seltzers have exploded in popularity, and at a time when takeout dining has all-but replaced the restaurant experience, it makes sense that micro-distilleries would look to sell more exciting RTD cocktails than Jack-and-Coke. Plus, they give customers an idea of how to use a less well-known product from the distillery, like sweet vermouth or bitter aperitivo, and a chance to sample it before buying a whole bottle. At a time of great uncertainty, when it feels as though much of life is on pause, Dillon’s is still finding ways to develop new, exciting products. Hopefully the rest of Ontario’s craft distilleries continue to follow suit.

A Trend No Longer, Zero-Proof Spirits Rise to Any Occasion

Cyndi
3 alcoholic bottles

By: Tracey L. Kelley

Crafting with spirits is an art that provides endless possibilities for the maker and mixologist alike. But the growing demand for spirit alternatives also demonstrates there are even greater opportunities to present flavor complexity and style.

  Whether through herbal tonics such as those found at Dr. Andrew Weil’s True Food Kitchens throughout the U.S.; spirits “for those partaking” and non-spirits “for the whole family” at Vena’s Fizz House in Portland, Maine; special juice and botanical potions at Shine Restaurant in Boulder, Colorado; or booze-free craft cocktails at the Modernist in San Antonio, Texas; producers of zero-proof options seek to expand the marketplace to allow consumers a bounty of choice.

  “There’s a knee-jerk reaction in some people when they hear about spirit alternatives. I get it — I love spirits too! I promise we’re not here for your guns,” Marcus Sakey, founding partner of Ritual Zero Proof in Chicago, told Beverage Master Magazine. “Our products aren’t meant to replace liquor. It’s a complement, a way to enjoy when you’re driving, dieting, training, making a baby, looking for balance or just have [stuff] to do tomorrow. The need goes way beyond the sober-curious. It’s like almond milk or the Impossible Burger — 90% of purchasers aren’t vegetarian or vegan. People want options, ways to mark a moment without the alcohol or calories.” Ritual produces high-rated gin, tequila and whiskey alternatives.

Tapping Into What Consumers Want

  As Sakey points out, there are numerous reasons why someone might choose not to have alcohol on a particular day, but frequently don’t have alternatives when going out with friends or wanting something to accompany dinner. So while movements such as Dry January or Sober October might have planted the initial seeds for alcohol-free selections, abstinence isn’t the only reason for their popularity.

  “We’ve received great support and encouragement from the sober-curious movement since day one, but we’re seeing the trends becoming habits amongst the 75% of drinkers who switch between alcoholic and non-alcoholic drinks,” said Mark Livings, co-founder and CEO of Lyre’s Non-Alcoholic Spirits, a London-based company with production facilities there as well as Melbourne, Australia and Montreal, Canada.

  “Over time, people are reducing consumption, so for a venue to retain patronage, it’s important to have a quality range available when a drinker inevitably looks for a non-alcoholic option.” Lyre’s extensive award-winning non-alcoholic spirit line includes American Malt, Dry London Spirit, Italian Orange, Dark Cane, Apéritif Rosso, Coffee Originale, White Cane, Amaretti, Italian Spritz, Orange Sec, Spiced Cane and Absinthe.

  Formerly the bar director of chef David Chang’s famous Momofuku Restaurant Group and mixologist for the speakeasy PDT in New York City, John deBary, creator and CEO of Proteau, wanted to solve another problem for customers. “Drinks that didn’t rely on alcohol were always a challenge. Drinkers tended to think of overly sweet and simple ‘mocktails,’ and finding zero-proof drinks that paired well with food was almost impossible.” Also the author of the cocktail book Drink What You Want, deBary crafted Ludlow Red and Rivington Spritz as ready-to-drink, zero-proof botanical options.

  “From a technical standpoint, zero-proof drinks are a fun challenge to a bartender because alcohol, since it’s a solvent, is a great base for flavors. Plus, we have access to thousands of uniquely-flavored products: gin, whiskey, liqueurs, fortified wines – to name a few,” he said. “These challenges are what led me to create Proteau as a way to test my abilities as a bartender/mixologist, and to find a way to create delicious beverages that everyone — not just alcohol drinkers — could enjoy.”

Intent Focuses on Taste and Versatility

  “A well-made cocktail is about taste and mood as much as it’s about alcohol, maybe more so. I wanted to introduce some balance to my bar cart; to be able to enjoy evening cocktails and a morning workout,” Sakey said. “Echoing the taste, smell and mouthfeel of spirits was incredibly difficult. Distillation turned out to be a rabbit hole — the cost was impractical, but more than that, it wasn’t possible to get the flavors right while still keeping it truly non-alcoholic.”

  Sakey said Ritual’s solution was to treat the process like cooking, building upward and layering tastes with quality ingredients such as all-natural botanicals. “The trickiest part was trying to replicate the kick of spirits. Over 500 iterations, we crafted a complex blend of ‘mouth-punch’ botanical elements — some spice, some cooling, some tingle, a few exciting additions I’ll keep under my hat — that work together to trick your taste buds,” he said.

  “Throughout the process, we worked closely with some of Chicago’s best mixologists and chefs. After more than a year of development, one of them said, ‘You know, in a cocktail, I’m not sure most people would be able to tell the difference.’ That was when I knew we had it,” Sakey said. In 2020, the industry-standard Beverage Testing Institute gave all of Ritual’s products three top honors and ranked its Tequila Alternative as the highest-rated non-alcoholic spirit in the world. It also has plans to roll out another spirit alternative in early 2021.

  Livings’ interest in zero-proof options evolved from his personal wellness journey, combined with an awareness of how friends’ and colleagues’ deliberate drinking choices. “They all expressed a common problem: they missed the drinks they knew and loved, and they weren’t impressed with the available alternatives.”

  With a long career in the beverage industry, he had the resources to pull together a team of bar staff, liquor marketers and liquor salespeople. “We figured that if anyone was going to change the way the world drinks, it should be a group of people who have plenty of drinking experience and would never compromise on taste. The big breakthrough was the ‘ah-ha’ that you didn’t have to take the alcohol out of a spirit product to produce a non-alcoholic spirit.”

  The single most important challenge, Livings said, was to provide true non-alcoholic versions of each classic spirit. “The flavor, aroma and appearance of each Lyre’s variant had to meet our high standards and basic test of, ‘Does it feel like I’m having a drink with booze in it?’” he said. “Over two years were invested in breaking apart flavors of the classics. It was very important that each was as close as physically possible to the classic spirits we are paying homage to. We don’t distill our products, as it’s not required when you craft the flavors using essences, extracts and distillates on a non-alcoholic base.”

  Proteau isn’t distilled either, as deBary chooses instead to blend a proprietary mix of botanical extractions with clarified fruit and artisanal vinegar for a low-sugar beverage. “For me, the eureka moment was when I sampled test batches with friends and colleagues, and they didn’t believe there wasn’t alcohol in the recipes. This is when it really dawned on me that the sensation of drinking a complex, intellectually-engaging drink wasn’t reliant on alcohol, and if we could disentangle that, we could open up a whole new world for people.”

Crafting a Solid Future

  Data points to a consistent rise for hand-crafted or small-batch zero-proof spirits, even if on-premises sales are skewed by 2020 pandemic repercussions. Future Market Insights in London indicate key demographics for spirit alternatives — considered part of the functional beverage market — includes 18 to 24 and 25 to 39, with product growth projections of nearly 3% each year for the next five as individuals seek “a multi-sensory drinking experience.” So innovation in the bottle must extend into well-positioned partnerships for marketing and promotion, and our makers know this all too well.

  “Again, people want options. This isn’t just me saying it — sales data bears it out,” Sakey said. “Across 90 days, we have a reorder rate of greater than 40% from major players like Binny’s Beverage Depot, Total Wine & More and ABC Fine Wines. If you extend the period to 120 days, it jumps to 70%. Better still, because Ritual Zero Proof is an ‘and’ product, it leads to higher sales, while serving a set of customers that liquor retailers often couldn’t otherwise capture.”

  Sakey and his team rely on integrated efforts to attract attention. “We’re cocktail aficionados, both leaded and unleaded, and so we love to work closely with mixologists. Some of our favorite Ritual recipes, like The Green Go-Go, have been created by artists like Carley Gaskin [of Hospitality 201 in Chicago], who was selected as The World’s Most Imaginative Bartender in 2018,” Sakey said. “But one challenge we often find is that retailers aren’t sure how to place spirit alternatives. We work closely with them, sharing best practices and providing POS materials. By showcasing a set, including components and mixers to create no- and low-ABV beverages, our partners see notably higher cart rings. It’s a win all around.”

  Livings said the company produces much faster now due to experience and “what the ‘rules’ are of non-alcoholic flavor architecture.” This enables the brand to span the world, broadcasting “an unparalleled range of drinks that you can make with Lyre’s. We have over 20 brand ambassadors, all classically-trained bartenders, so their expertise is the perfect base to help educate and collaborate with other bar staff and mixologists,” he said. “We’ve also worked closely with influencers, bloggers and passionate supporters.”

  In keeping with virtual outreach as venues’ occupancy ebbs and flows, Livings said the company offers one-on-one mixology classes through video chat programs. “When you purchase Lyre’s via our e-commerce site, we set up a private, 15-minute class with one of our brand ambassadors to demonstrate how to make delicious non-alcoholic cocktails at home,” he said. “It’s a unique offering, and we love the opportunity it gives us to meet our Lyre’s drinkers.”

  The primary message deBary reinforces with customers is “they don’t need to lift a finger to enjoy Proteau as intended.” But he trusts what his colleagues can do to provide a unique drinking experience. “Bartenders are naturally creative and experimental people, and we’ve been really happy with how they’ve used Proteau in their recipes and will continue to support that.”

  He also understands the unique value of providing people with a range of selections to fit their desires. “When I was bar director for Momofuku, and we would expand the non-alcoholic drink options at one of our restaurants, we noticed an overall increase in beverage sales,” he said. “The expanded options didn’t cannibalize from any other category and showed us, in real numbers, that we were reaching people who had previously been left out of the conversation. Accessibility is the core of hospitality, and it’s not just the right thing to do; it’s also great for business.”

Raising Capital for Craft Spirits Through Crowdfunding

Cyndi

By: Becky Garrison

Since its founding in 2013, Seattle-based Copperworks Distilling Company developed an award-winning portfolio of spirits with accolades such as the 2018 Best Distillery of the Year award from the American Distillery Institute. Yet, according to Jason Parker, Co-Founder and Presi-dent, they found themselves at a crossroads in growing their distillery last year. Even though they had more than 260 barrels of whiskey aging in inventory, the current demand for their American Single Malt whiskey exceeded their supply of mature whiskey.

  “The only way to win sales in the whiskey market is to have whiskey to sell,” Parker told Beverage Master Magazine. “If we are only growing through cash flow generated by vodka, gin and a little bit of whiskey sales, we won’t have the whiskey to compete in the market against those businesses who received capital investments to produce whiskey. In essence, we must produce whiskey faster than our current cash flow will allow.” 

  Rather than resort to traditional ways of generating capital, they wanted to explore a way to ex-pand their business that would get their friends, family, customers and other supporters involved as brand ambassadors. “We wanted to give them an opportunity to own a little piece of the work and be with us as we grow,” said Parker. 

Choosing Equity Crowdfunding

  Copperworks decided to raise money via equity crowdfunding through the WeFunder website. In Copperworks’ estimation, this approach enables individuals to become part-owners of a privately held company by trading capital for equity shares. This method of generating capital became available in 2016 with the passage of a new law called “Regulation Crowdfunding.” This shift made it legal for anyone to invest small amounts of money in startups.

  Copperworks chose equity crowdfunding over more established crowdfunding platforms like Kickstarter, Indigogo or GoFundMe because, with equity crowdfunding, a company issues equi-ty, such as shares of company stock, to participating investors. A company like Copperworks may also choose to offer perks, but the major incentive is the opportunity to become shareholders in the company.

  In comparison, traditional crowdfunding is more rewardsbased, whereby those who contribute to the campaign receive a perk, such as a discount or an advance copy of the product, but they have no equity in the company. Furthermore, a traditional crowdfunding campaign often offers their products at a discount to generate interest. Should the campaign take off, companies can find themselves unable to meet market demand at this low price point.

  According to Parker, a key advantage of equity crowdfunding is the company’s opportunity to utilize its investors as brand ambassadors. While this component of Copperworks’ strategy has been put on hold due to COVID-19, they are currently in the process of building a brand ambas-sador kit for their investors. In this kit, investors will be given the details of how to approach a restaurant, bar, grocery store or liquor store on behalf of Copperworks.

Challenges of Using Equity Crowdfunding

  Parker acknowledges the need for a distillery to ascertain if equity crowdfunding is the right ap-proach. For example, this approach to raising funds may not work for a business that has only been around for a year or less and has yet to build up a loyal following. “Equity fundraising is a good thing when you’re mature enough for the company to attract the appropriate investors for the valuation,” he said.

  From a company’s point of view, equity crowdfunding requires more upfront costs and financial discipline. The company’s records need to be reviewed professionally, an expensive process that took Copperworks three months to complete. In addition, WeFunder takes 7% of the funds raised, unlike a bank loan where one receives the entire amount upfront and then pays interest over time. Depending on the terms of a loan, a company may pay more in interest through a traditional loan. However, for those companies needing the full amount upfront, a bank loan may be their best option.

  Also, with equity crowdfunding, Copperworks had to be totally transparent with their financials, a process that included having this information readily available for public viewing. For Parker, this transparency fits in with their business model. “We believe transparency is one of the things missing in businesses today, so we want to model that behavior.” In the issue of transparency, they chose to share with their investors why they needed to raise money and how they intended to use these funds.

Promoting and Implementing the Equity Fundraising Campaign

  Copperworks promoted their campaign through their mailing list of 12,000 individuals. In addi-tion, they reached out to the 3,600 folks who liked their Facebook page because they had a high rate of customer engagement on this platform. They were also featured for five weeks in the American Distilling Institute newsletter. Their campaign, which ran from the end of February to April 2020, netted a total of 409 investors and $776,480 in funds.

  Parker admits to the challenges of raising funds right as COVID-19 began impacting the econo-my starting in mid-February. “It’s not very easy to ask people to spend money on a company when they may not have a job, their life savings may be losing 30% of its value, and they don’t know who around them is even going to be alive in a few months.”

  However, he said that since Copperworks had been around for a long time, many people emerged who really liked the company and their products and were looking to support something they cared about. 

  Regardless of the amount of their investment, each investor receives an annual report along with an invitation to every quarterly meeting. For those who invested $1,000, they get 10% off all Copperworks goods for life. Other perks were offered to those investing at higher increments, such as an offer to pick a single cask whiskey, a free event rental or an invitation to be on the board of directors.

  As per the SEC regulations, Copperworks disclosed to their investors the risks associated with capital works. While some of the risks noted are associated with investing in any company, others are specific to the distilled spirits market or Copperworks in particular. For example, the cur-rent distilled spirits market growth could slow or stop in the future. Along those lines, due to the threetier distribution system in the alcohol industry mandated by U.S. law, Copperworks is reli-ant on distribution companies. The distribution system has experienced consolidation in recent years, and should this consolidation continue, distilleries may face difficulty in expanding the distribution of their products.

Outcome of Equity Fundraising Campaign

  Copperworks successfully raised enough money to continue production during the COVID-19 shutdown and produce whiskey at their all-time maximum rate. All employees kept full-time hours, even though the tasting room was (and remains) closed. Therefore, the distillery could de-vote some of its resources to producing hand sanitizer, a product badly needed at the start of the pandemic. 

  Even better than simply raising money, which a bank loan could have accomplished, Copper-works was able to fully engage the support of their loyal fans. Customer engagement through social media, email and quarterly calls increased the opportunity for Copperworks to share their story and their customers to become brand ambassadors. New customer acquisition, which is much more difficult while the Copperworks tasting room is closed, increased through word-of-mouth, and online sales increased due to these outreach efforts.

  As Copperworks looks to expand their production area and event space, they have solicited their new investors’ network to help them find even more opportunities to grow their business. Copperworks is truly building an army of brand ambassadors and getting new talent and ideas through the use of regulation crowdfunding.

Continuously Improving Your Incentive Program

Cyndi
beer leaning to a bar graph

By: Nichole Gunn, Vice President of Marketing & Creative Services, Incentive Solutions

The first years after launching an incentive program are an exciting time for craft beer producers: supply chain trading partners, drawn by the excitement of new promotions and an improved channel partner experience, are more responsive, more motivated and more likely to recommend the brand’s products to restaurants and retailers. During this time, craft beer producers often experience a period of rapid sales growth or improvement in other KPIs the program was designed to target, such as improved partner data profiles or increased referral business. The incentive program’s ROI grows exponentially.

  However, often after 12-30 months, growth begins to stagnate and the ROI curve starts to flatten. If left unaddressed once an incentive program’s novelty starts wearing off and supply chain trading partners become habituated to the program’s value proposition, the incentive program’s ROI may start to decline, leaving craft beer producers scrambling to find ways to replicate the program’s success.

  The good news is that by planning ahead, craft beer producers can anticipate this drop off in interest level and continuously improve their incentive program in order to sustain a competitive advantage in their channel.

Keeping Incentive Programs Fresh

(and Profitable!)

  In order to stay relevant, a channel incentive program has to be able to evolve with the interests of its participants, scale its value proposition over time and respond rapidly to the tactics of the competition. Below are several factors that craft beer producers can focus on in order to continue to drive ROI once program growth begins to stagnate:

•  Evolving incentive program technology.

•  Incorporating elements of gamification.

•  Adding new, richer reward-earning opportunities.

•  Personalizing brand interactions to build loyalty.

•  Re-launching the program with updated features and branding.

  Ideally¬, these are all elements that craft beer producers will consider from the inception of the program, with plans for program expansion at certain intervals. However, these factors can also be incorporated to bring new life to existing programs.

Evolving Incentive Program Technology

  Today, incentive programs are a technology platform, and craft beer producers should be as mindful in selecting incentive program technology as they are in selecting any B2B software platform. From an administrative standpoint, this means choosing an incentive platform that integrates with existing CRMs and other business software and provides streamlined admin tools and generates detailed reports on engagement and ROI.

  However, perhaps more importantly, craft beer producers should focus on selecting incentive software that is fully supported and will be continuously updated to improve the user experience for their supply chain trading partners. More and more, B2B customers expect a seamless B2C-style user experience. Partners will be less likely to engage with a rewards program that uses stale, outdated software, no matter how exciting the reward offering.

  Additionally, agility is key. Craft beer producers should look for incentive software that allows them to quickly go to market, adapt to the tactics of the competition and launch new promotions. These factors will offer an edge when it comes to maintaining engagement throughout the lifetime of their program.

Incorporating Elements of Gamification

  Gamification is the use of game-like elements – such as points-scoring, interactive leaderboards and other competitive components – to increase engagement with a web-based application, such as an incentive program. Gamification is a powerful tool that supply chain trading partners already seek out in their day-to-day lives, from collecting likes on their Facebook page to scoring achievements on Peloton bikes.

  When interest in the program begins to stagnate several years after launch, adding gamification features can give the program new life. Interactive trivia, spin-to-wins, badges and achievements, personalized leaderboards and limited-time point bonuses make the program more compelling and can give a sustainable boost to the program’s effectiveness over time. Additionally, by not relying strictly on reward value to drive engagement, craft beer producers can help lower program costs to increase their ROI.

Adding New, Richer

Reward-Earning Opportunities

  As mentioned earlier, one of the reasons an incentive program can lose its effectiveness overtime is that participants become habituated to the program’s value proposition. Top performing supply chain trading partners may have already redeemed for their most coveted rewards and find themselves with more points than they know what to do with. The competition may have launched their own reward program with comparable, or even more compelling, rewards.

  It’s up to craft beer producers to constantly up the ante with their program’s value proposition. For instance, launching a points-based merchandise reward program alongside an existing debit or gift card program will offer new value for participants. Elevate a points-based program by offering top performers a concierge service to redeem for custom rewards – using their points to buy a new truck, renovate their home or pay for their child’s college tuition will personalize the reward experience and boost the program’s value proposition in a way the competition will struggle to match.

  Additionally, incentive travel promotions can be added onto any program type, giving craft beer producers an opportunity to connect with their supply chain trading partners on a deeply personal level. Given recent restrictions, the demand for incentive travel is projected to be particularly high once it is deemed safer.

  If minimizing rewards cost is a concern, try setting higher qualification thresholds for these more exclusive reward opportunities. Doing so can also help tap into supply chain trading partners’ competitive drive, keeping them more engaged as they compete for a limited number of higher tier rewards.

Personalizing Brand Interactions

to Build Loyalty

  In their early stages, incentive programs are typically geared toward growth. However, if well designed, the program will be able to convert that initial interest and motivation into brand loyalty over time. Loyalty is about more than rewards; rewards appeal to self-interest while loyalty is rooted in creating mutual interest. Craft beer producers can create this loyalty by using their incentive program to provide a highly personalized experience and to help their channel partners become more effective salespeople.

  This personalization should extend through every phase of the incentive program, from designing program communication to be relevant to each segment of their channel partners to basing reward selection on participant lifestyle and interests. Craft beer producer can use engagement metrics from their incentive program to identify which of their supply chain trading partners have a high level of buy-in and which of their partners might need a little more help. They can provide enablement to their partners by providing online courses and certifications and using their incentive program as a platform to educate partners on their brand and product lines, equipping them to more effectively sell their products.

  By using personalization and focusing on partner experience, craft beer producers can build loyalty with their supply chain trading partners in ways that make extrinsic rewards less important. This makes trading partners drastically less likely to lose interest in the program.

Re-Launching the Program with Updated Features and Branding

  Finally, when the growth of an incentive program begins to stagnate, it might be a sign that it’s time to re-launch the program. A program re-launch gives craft beer producers the opportunity to step back and figure out what their prior program did effectively, as well as what they can do better. During this time, craft beer producers should also explore other pain points they would like their new program to target.

  A pause between programs can help build anticipation, as supply chain trading partners realize the value proposition of the previous program that they had begun to take for granted. Once the new program launches, with updated branding and new features, supply chain trading partners will enthusiastically re-enroll and craft beer producers will experience a renewed period of growth. Better yet, by using the knowledge gained from the previous program, craft beer producers can make their re-launched program even more effective than the first.

Planning Ahead for Program Management

  Additionally, craft beer producers can enlist the help of incentive companies to design and manage their programs. Just like crafting an excellent brew requires years of experience, so too does managing an effective incentive program. Working alongside an incentive company with a proven track record can help craft beer producers avoid potential pitfalls and take advantage of decades of experience in managing successful programs.

  Whether a craft beer producer is looking to launch their first program or improve a program that is currently underperforming, the initial investment of partnering with an incentive company can pay dividends down the road.

  Nichole Gunn is the VP of Marketing and Creative Services at Incentive Solutions (www.incentivesolutions.com), an Atlanta-based incentive company that specializes in helping B2B companies improve their channel sales, build customer loyalty, and motivate their employees. Nichole Gunn can be reached at ngunn@incentivesolutions.com.

Intellectual Property for Beverage Manufacturers

Cyndi
intellectual property law

By: Brian D. Kaider, Esq.

While many people are familiar with the four main types of intellectual property: patents, copyrights, trademarks, and trade secrets, often they don’t know the distinctions between them or what they are meant to protect.  This article is meant to cut through the confusion and explain these distinctions and how each property right applies to the beverage industry.

Patents Protect Ideas – sort of

  Most people have a general understanding that a patent protects an “invention” or an idea.  In a very general sense, that’s true.  But, even though the Congressional authority to grant patent rights comes directly from the U.S. Constitution (Article 1, Section 8, Clause 8), exactly what is patentable is the subject of tremendous confusion among the U.S. population, examiners at the U.S. Patent and Trademark Office, lawyers, and even judges; sometimes requiring clarification from the U.S. Supreme Court.  The purpose behind the grant of a patent is to encourage innovation by granting exclusive rights to one’s discoveries for a limited time.  In other words, it gives the patent holder a short-term (20 years from the date of filing) monopoly on his invention.  Generally, new machines, chemicals, electronics, methods of production, and in some cases, methods of doing business, are eligible for patent protection.

  But, not all ideas are patentable.  In fact, ideas alone cannot be patented.  They must first be “reduced to practice,” meaning that either you must have actually created your invention or have described it in sufficient detail that someone skilled in that area could follow your disclosure and create it themselves.  So, you can’t get a patent on a time machine, because (at least for now) no one has figured out how to defy the time-space continuum.  In addition, to be patentable, ideas must be novel, meaning that no one else has ever disclosed that idea before, and non-obvious, meaning that your idea cannot be an obvious variant on someone else’s invention.

  Given that humans have been making beer for thousands of years, one might think that coming up with something novel in the brewing process would be impossible.  Not so.  In preparation for this article, I ran a quick search of patents containing the word “beer” in the title and got 491 hits.  Some recent examples include U.S. Patent No. 10,570,357 – “In-line detection of chemical compounds in beer,” U.S. Patent No. 10,550,358 – Method of producing beer having a tailored flavor profile,”  and U.S. Patent No. 10,400,200 – Filter arrangement with false bottom for beer-brewing system.” 

  Improvements in any area of the alcoholic beverage industry may be patentable including, new types of bottles, cans, growlers, and kegs; new types of closures and caps; improved methods of separating hops from bines and leaves; new processing equipment, improved testing procedures and equipment, improved packaging, etc.  Essentially, anything that lowers costs between the farm and the consumer, improves the quality of the beverage, or enhances the consumer experience is worth considering for patent protection.

  One word of caution, however; time is of the essence.  The America Invents Act, effective March 16, 2013, brought the U.S. in line with most other countries in being a “first to file” system, meaning if two people develop the same invention, the first to file for patent protection wins, regardless of who first came up with the idea.  Also, any public disclosure of your idea (such as at a trade show) starts a 1-year clock to file or you may lose your eligibility for patent protection.

Copyrights Protect Creative Works

  The authority for copyright protection stems from the same section of the U.S. Constitution as patent protection, discussed above.  Our founding fathers recognized the valuable contribution made to society by authors and artists and, therefore, sought to encourage creative expression by providing protection for artistic works.  Examples of copyrightable materials include, books, paintings, sculptures, musical compositions, and photographs.

  Unlike inventive ideas, which are only protected when the government issues a patent to the inventor, copyrights attach at the moment the artistic work is “fixed” in a tangible medium.  So, for example, if a composer develops a new musical score in her head it isn’t protected, but the moment she translates that tune to notes on a page or computer screen, it becomes protected by copyright.  In order to enforce that copyright in court, however, it must be registered with the U.S. Copyright Office.  While it is possible to wait until an infringer comes along before filing for registration, doing so can severely limit the damages that may be available to the author of the creative work.  So, early registration is the better course. 

  In the beverage industry, copyright issues often crop up with regard to labels and advertising materials.  But often disputes arise relating to who owns the artwork contained within a label, for example.  Generally, the author of a work owns the copyright.  But, if an employee of a brewery, acting within the scope of their employment, creates an image that the brewery owner incorporates into its labels, that picture is considered a “work made for hire” and is owned by the brewery.  Where disputes often arise, however, is if the brewery hires an outside artist or a branding agency to develop the artwork.  In that case, the brewery should include language in its contract requiring assignment of all copyrights to the brewery for the created artistic works.  The same would apply for any artwork commissioned for use inside the brewery tasting room or for marketing materials.

Trademarks Protect “Source Identifiers”

  People generally associate trademarks with the protection of a brand.  In fact, I have often described trademarks as an “insurance policy for your brand.”  But, in more technical terms, what a trademark protects is a “source identifier.”  The purpose of trademark law is to protect consumers from being misled or mistaken as to the source of a product.  So, for example, if a consumer sees a pair of shoes with a certain famous “swoosh” image on the side, they should be reasonably able to assume that pair of shoes was manufactured by Nike, Inc. and was made with the same degree of workmanship and quality that they have come to expect from that company.  That “swoosh” symbol, therefore, acts as a source identifier to tell the public that the product was made by Nike, Inc. 

  What may function as a trademark can be quite broad, including: the name of the business (e.g., Triple Nickle Distillery®), a logo (e.g., the “swoosh”), a color (e.g., the Home Depot orange or the UPS brown), even a scent (e.g., Verizon owns a trademark on a “flowery musk scent” it pumps into its stores to help distinguish them from competitors’ environments).  Not everything can be trademarked, however.  Slogans, words, and images that appear merely as decoration as opposed to a means of identifying the supplier will not qualify for protection unless the applicant can demonstrate that the item has achieved “secondary meaning,” i.e., that the public has come to associate that item with the manufacturer.  As an example, in the 1970’s McDonalds used the slogan, “You deserve a break today” in its commercials and other advertising.  People came to associate this phrase with McDonalds and in 1973 they were granted a trademark registration.  Incidentally, McDonalds briefly let this trademark go abandoned in 2014, but quickly re-filed and the mark is still active today, more than 45 years after it first registered.

  In general, marks also cannot be descriptive of the product or geographically descriptive of the source in order to be registered as a trademark.  For example, one could not obtain a registration for just the words “India Pale Ale.,” because it simply describes the product and does nothing to differentiate it from every other IPA on the market.  Similarly, an attempt in 2019 to register the name “Philly City Brewery” was refused as “primarily geographically descriptive,” because the applicant could not demonstrate that people had come to associate that name with its business as opposed to the many other breweries in Philadelphia. 

Trade Secrets Protect Valuable Confidential Business Information

  Unlike other forms of intellectual property, there is no registration system for trade secrets, because, by their very nature, they must be protected from all unnecessary disclosure.  Trade secrets can be just about anything that is confidential to your business and gives you a competitive advantage.  Some examples, include recipes, client lists, manufacturing processes, marketing plans, and client lists.  These are things that, if publicly disclosed, would harm the competitive position of the company and, therefore, must be vigorously protected. 

  One of the most famous trade secrets is the formula for Coca-Cola.  This formula has been protected for more than 130 years, sometimes through extraordinary measures.  In 1977, The Coca Cola Company withdrew its product from India, because in order to sell there, they would have had to disclose the formula to the government.  They decided it was more prudent to forego sales to one of the biggest populations on earth rather than risk disclosure of their secret recipe.

  Protecting trade secrets requires constant vigilance in two ways.  First, the information should only be disseminated to people within the company, or outside consultants, who need the information in order to perform their duties for the company.  In other words, the information is on a strictly “need-to-know” basis.  Second, those few people who are given access, should sign non-disclosure agreements with harsh penalties for breach of their duty of confidentiality.  Once the information gets out, it’s nearly impossible to un-ring that bell, so there must be severe financial consequences to someone who leaks the information.

  Brian Kaider is a principal of KaiderLaw, a law firm with extensive experience in the craft beverage industry. He has represented clients from the smallest of start-up breweries to Fortune 500 corporations in the navigation of regulatory requirements, drafting and negotiating contracts, prosecuting trademark and patent applications, and complex commercial litigation.

For more information please contact Brian Kaider at…
240-308-8032; BKAIDER@KAIDERLAW.COM; www.KaiderLaw.com

Empowered Makers, Spirited Women

Cyndi

By: Tracey L. Kelley

In the spirits world, female master blenders and head distillers are creating more buzz than ever, not simply for being “the first” but for their positions as innovative navigators of taste, brand and industry.

  With this angle in mind, we reached out to a few notable makers who could share valuable insight to help propel your efforts. We asked all of them three questions:

1.   What are you most proud of regarding your craft?

2.   What’s the top lesson you’ve learned as a businessperson/distiller?

3.   What advice would you give women entering the industry?

  Here’s what they shared with Beverage Master Magazine.

Connie Baker—Head Distiller and Queen Bee

Connie Baker—Head Distiller and Queen Bee—Marble Distilling Co. 

  A former pharmaceutical sales consultant, eco-minded Baker went to distilling school in 2010. She now leads a family- and friends-owned and operated business in Carbondale, Colorado, that includes the distillery, two bars and an inn. Maintaining local sustainability is important: her grains, water, and filtering marble are all sourced in the state.

  Signature Spirits: Moonlight Expresso, Gingercello, Vodka 80°

1.   Marble Distilling Co. has a first of its kind Water & Energy Thermal System (WETS) that reuses 100% of our process water and harvests the energy created through distillation, saving more than four million gallons of water and reusing 1.8 billion BTUs (20 homes) of energy annually. I’m proud that while we’re creating award-winning craft spirits, we’re being sustainable and thoughtful about the planet and natural resources. Water is our most precious resource in Colorado, so we’re doing everything we can to “drink sustainably” and “save the planet one bottle at a time.”

2.   Never give up, and believe in yourself and your craft: fear is failure, and work ethic is second-to-none.

3.   Do your homework—maybe even work for an existing distillery for a time. And don’t be intimidated by the fact that the distilling industry has been historically male-dominated. We women have great noses and palates, are thoughtful, creative and bring unique perspectives to a previously male-run industry.

Krystal Goulart—Head Distiller

Krystal Goulart—Head Distiller—Spirit Works Distillery

  Spirit Works Distillery owners Ashby and Timo Marshall celebrate female-driven innovation at this small distillery in Sebastopol, California, and give Goulart and her team plenty of opportunity to craft with skill and instinct. In July 2020, the American Distilling Institute named the organization Distillery of the Year and extended its Bubble Cap Award for diversity and community engagement.

Signature Spirits: Sloe Gin, Barrel Reserve Sloe Gin, Vodka, Four Grain Straight Bourbon

1.   First, an absolute trust in my palate, which is necessary when making “cuts” at the still, blending and product developing. Sensing subtle flavor and textural nuances within a run is what helps maintain a house profile as much as it also defines a distiller’s signature. Second, my ability to understand equipment and process timing so that I can develop efficient methods of working to increase speed and productivity. The best production hand is one who maintains speed with the least amount of movement.

2.   Being part of the craft distilling industry is, first and foremost, a passion play. The goal is to provide an environment of inspiration, education and exploration so you can stand together on new frontiers. Though deadlines and malfunctioning equipment might get in the way, cultivating employee and client relationships creates a robust team that can withstand any challenge.

3.   Learn all aspects of the business, from pressure-washing drains to making cocktails. Share respect and value with your team members, your production space and the products you make. Embrace opportunities for future growth or change. Be fearless in the face of challenge, enjoy the ride and embrace your personal evolution.

Becky Harris—Co-Founder and Chief Distiller

Becky Harris—Co-Founder and Chief Distiller—Catoctin Creek Distillery

  Harris, a former chemical engineer, formed Catoctin Creek in Purcellville, Virginia, with husband Scott, in 2009. Considered Virginia’s “Most Awarded Spirits,” Harris celebrates her state’s heritage and history through many aspects of the brand and produces a vibrant private single cask expression program.

  Signature Spirits: Roundhouse Rye, Rabble Rouser Bottled in Bond, 1757 Virginia Brandy XO

1.   I’m incredibly proud of how our vision and product have matured in the past several years. Catoctin Creek has always been grain-to-glass, but we have really leaned into our identity as the Virginia Rye Whisky, incorporating the regional grain, terroir and even wood to highlight our primary and unique focus on 100% rye mashbill whiskies. It sounds simple, but really learning who you are as a company is an evolution.

2.   As a chemical engineer, I always appreciated the technical challenges and achievement of making delicious whisky. Over the past 11 years, I’ve grown to appreciate the visual and story aspects of this business. Engaging more on the marketing aspects of what we do has not only improved my communication skills but also made me more confident as a founder and leader in a business that I entered in my 40s.

3.   I would recommend this to everyone: join one of the professional organizations available to you—volunteer to serve. You’ll gain knowledge, friendships and a better understanding of the industry and the best ways to navigate it for your company, your employees and even yourself.

Lein and Michelle Ly—Co-Founders and Head Distiller

Lein and Michelle Ly—Co-Founders and Head Distiller—Vinn Distillery

  Seven generations of the Ly family have crafted Baijiu, a 4,000-year-old Chinese rice liquor. In 2009, Phan Ly and wife, Kim Trinh, started Vinn Distillery in Portland, Oregon, to carry on this “white liquor” tradition in the United States. Today, five Ly siblings share various operational roles, with Lein as head distiller and sister Michelle handling sales and marketing.

  Signature Spirits: Vinn Baijiu, Baijiu Family Reserve, Whiskey, Vodka

1.   We’re most proud that we make everything from scratch using our family’s traditional methods, and to introduce one of the oldest and most-consumed spirits in the world to the general market here in the U.S. Using non-GMO rice products, we were the first to produce Baijiu, a rice vodka, a rice whiskey, and flavored Baijiu in America.

2.   The top lesson we’ve learned is that introducing something different, like Baijiu, to the market, is extremely difficult. Every sale requires an explanation of what the product is and how to consume it.

3.   My advice would be to have a target audience in mind, find a niche and dominate it.

Julie Shore and Arla Johnson—Co-Founders and Head Distiller

Julie Shore and Arla Johnson—Co-Founders and Head Distiller—Halifax Distilling Company

  Business and life partners Shore, a former dental hygienist, and Johnson, a counselor, previously owned and operated Prince Edward Distillery, home of Canada’s first potato vodka, before launching Halifax Distilling Company in Nova Scotia in 2016. Shore, a fourth-generation distiller, now focuses on a Maritimes favorite, rum.

  Signature Spirits: J.D. Shore Rum Cream, Black Rum, Gold Rum

1.   I love creating and visiting other distilleries to taste their creations. It’s so exciting! This industry has grown so much since we first distilled in 2008. It has brought such awareness to the public and gained much support! This is no small feat when the big conglomerates dominate the industry—to be able to carve out a piece from them is a very proud feeling!

2.   As a businesswoman, I’m still learning. Seems we learn everything the hard way! I think the top lesson that I’ve stumbled across is I try to be a real part of my community—and not just for the social media posts either. We want to help out when we can. If someone asks us for something, we really want to be there for them. Johnson adds: “’No’ does not mean no—you have to push back.”

3.   Follow your dream, and don’t take anyone’s shit! Seriously, there are folks who will get in your way—don’t waste time with them. Figure out how to get it done without them. If—and this will happen, too—you have to work with them, swallow hard and compliment the hell out of them. These folks trying their best to prevent you from succeeding typically have huge egos, and complimenting them really works. Just try not to sound sarcastic. Johnson adds: “You have to have passion and tenacity. You have to push through the challenges.”

Joy Spence—Master Blender

Joy Spence—Master Blender—Appleton Estate Jamaica Rum

  The grand dame of master blending, chemist Spence has spent nearly 40 years crafting Appleton Estate’s centuries’ old tradition for the modern age—first working with the master blender, then assuming that role in 1997. Along with creating special blends for presidents and princes, she mentors Nassau Valley high school students in chemistry. 

  Signature Spirits: Appleton Estate Signature Jamaica Rum, 12-Year-Old Rare Casks Jamaica Rum, 8-Year-Old Reserve Jamaica Rum

1.   As a master blender responsible for the legacy of our rum, I’m most proud of the several limited-time releases that we have introduced, such as the Appleton Estate 50-Year-Old, the Appleton Estate 30-Year-Old and the Appleton Estate Joy Anniversary 25-Year-Old. These offerings have created greater focus on the premium quality of the Appleton Estate range while showcasing the depth of very old rums in our inventory.

2.   During my career, the top lesson I have learned as a master blender is that every failure leads to an improvement, and being pragmatic is a key success factor.

3.   My advice to any woman entering the industry is to focus on your craft and not your gender. Become an expert in your field and pass on your knowledge. It’s your passion, skill and creativity that will make you successful.

Chanel Turner—Creator

Chanel Turner—Creator— FOU-DRÉ Vodka

  Once a government contractor, Turner spent more than six months researching distilleries with the technology to produce the quality of crisp, clean vodka she wanted. Today, her “lightning” brand has robust Asian sales and a strong online market. She’s also the founder of the Black-Owned Spirit and Wine Festival in Washington, D.C.

  Signature Spirits: FOU-DRÉ Vodka

1.   I’m most proud that we’ve been able to sustain in an industry that sees many brands come and go. Looking back, I identified a problem that many can relate to, with vodka being a spirit that people tend to grow out of. At 25, I knew I wanted a “better experience” when consuming spirits without having to use sugary mixers. I realized I would have to source the right distillery to bring my vision to life. It took months of research, formula tests (87!) and market surveys to come up with the infused formula that’s found in a bottle of FOU-DRE today. We’ve not compromised the unique taste or exquisite packaging of FOU-DRE in any way—that truly makes me proud.

2.   I’ve learned to celebrate the small wins and appreciate the journey. The older I get, this matters more than ever before. Essentially, I’ve grown with the business, becoming a proprietor at such an early age. Outside of what it takes to build a spirit brand, I’ve learned patience!

3.   My advice would be to make the right alliances early on. Though we’re seeing more women come into this space, it’s still a male majority industry. So it’s important that we unify, join together and share moments of pains and progress. We can learn so much from one another and get ahead of the game by tapping into each other’s resources. When I first started, there was a small percentage of women owners/distillers in the industry. Even more disheartening, there was an absence of platforms for community-building and very little visibility for women in the field. We’ve come a very long way but still have far to go. I encourage women coming in the industry to network, network and network some more! Make your presence in the industry known. When one wins, it’s a win for us all.

Kaitlin Vandenbosch—Head Distiller/Brewmaster

Kaitlin Vandenbosch—Head Distiller/Brewmaster— Mill Street Brewery

  After earning a master’s in brewing and distilling at Heriot-Watt in Scotland, Vandenbosch started at Mill Street in Toronto in 2013, just when it was expanding into micro-distillation. She advanced in many management positions since then, helping Mill Street refine its line. In 2019, she became the organization’s brewmaster.

  Signature Spirits: Single Barrel Canadian Malt Whisky, Tankhouse Bierschnaps, Small Batch Gin

1.   There are two things I’m proud of: first, Mill Street brought distilling back to the Distillery District in 2013, and I was the first head distiller. Spirits hadn’t been distilled on-site since the mid-1980s! Second, during my time as head distiller, I set down two barrels of whisky. Since it was very small scale, I was able to take a lot of time and care with the recipe design, aging and blending. I am really happy with how both turned out (released in 2017 and 2018).

2.   It’s fairly technical, but one of the most useful skills that I learned from my former boss, Joel Manning, is benchtop trials. This comes in handy when determining flavor additions, final alcohol strengths, barrel blends, cocktail designs, and so on. It’s extremely useful to dial in on a small scale the flavor profile you’re aiming for and then adapt it to a larger scale.

3.         Network! I believe it’s really important, especially in craft distilling, to meet others in the industry or similar industries. There’s also a lot of overlap between brewing and distilling and wine/cider making and distilling. Similarly, it’s good to meet people who are the end-users of your product—bartenders and customers. Networking is a great way to share ideas, learn about events, ask questions and make connections.