Category: Distillery

Ogden’s Own Distillery: Bringing History to Life in Utah

Cyndi
5 women posing for a beverage

By Nan McCreary

Ogden, Utah, is a small city with a big, colorful past. From the late 1800s to the mid-1900s, Ogden transformed from a lawless frontier town to a rough and tumble railroad hub, to a center for bootleggers and speakeasies during Prohibition. The infamous 25th street, called “Two-Bit 25th” because any form of debauchery could be had for two bits, was a hotbed of gambling, prostitution, opium dens and bootleg booze.

  Today, Ogden is rich with heritage, live music, arts and outdoor activities, and, contrary to its notorious past, is home to a heavy population of Mormons. In 2009, despite a sizable culture that bans alcohol, two entrepreneurs decided to open a distillery — only the second in the state — and capitalize on Ogden’s unique history.

  “Our first product, Underground Herbal Spirit, was named for the tunnels off main street that were used to move contraband during the late 1800s and early 1900s,” co-owner and CEO Steve Conlin told Beverage Master Magazine. “Ogden was a notorious, wild place back then. With the railroads, it was the crossroads of the west. We pay homage to that with our logo, a circle with a cross, and a small dot ‘on the map’ that represents this era.”

  According to Conlin, Underground Herbal Spirit was highly inspired by the success of Jägermeister. Yet, with a mixture of 33 herbs, spices and flavors, it also reflects the odd assortment of characters that traveled through Ogden in the early days. “I love the idea that you could have all the herbs from around the world coming through Ogden and making a concoction,” Conlin said.

  Underground Herbal Spirit includes a mellow blend of cassia, angostura, anise, cardamom, gentian, yarrow, wormwood, mate, guarana, ginseng, molasses, orange oil, lemon oil, spearmint, pure cane sugar, agave and plum. While the drink is technically a liqueur, it has less than the required 2.5% sugar content by weight, which allows the herbs and spices to come through for a sweet, complex flavor experience.

  Ogden’s Own enjoyed immediate success with its Underground Herbal Spirit. Not only did it win a Double-Gold Medal in a San Francisco World Spirits Competition in 2010, it was also selected as the Best Liqueur in the Americas at the Spirits of the Americas Competition in 2012. The beverage was extremely popular with consumers, too. 

  “People ask me why I would start a liquor business in Utah,” Conlin said, “and the answer is because I had distribution. Utah is a control state, where liquor is sold only in state stores, so I had access to the market right off the bat. At the time, as long as you had a good solid product, the state stores were happy to sell it for you. We deliver our products to the warehouse, and they place it in all [44] of their stores.”

  Ogden’s Own followed Underground Herbal’s success with a 2012 release of Five Wives Vodka. The beverage, made from Utah mountain spring water, is a 100% distilled corn-spirit and gluten-free. The spring, hidden in beautiful Ogden Canyon, is inaccessible by vehicle, so the water is hiked out five gallons at a time.

  Five Wives Vodka got off to a rather inauspicious beginning: the bars in neighboring Idaho wanted it, but the state refused, saying the name was offensive to women. Ogden’s Own, seeing a public relations opportunity to gain “notoriety for being bad in Idaho,” took the story to outlets such as NPR and NBC’s Today Show. As a result, Ogden’s Own captured the attention of a high-powered Washington D.C. attorney who wanted to use their case to clear up some constitutional issues involving interstate sales. “The attorney wrote an eight-page letter to the state of Idaho,” Conlin said, “and within 30 minutes, they called me and invited me to send the product.”

  Conlin claimed their intention was never to poke fun at women or Mormons. “We liked the alliteration, like ‘Five Guys Burgers,’ and the idea that anyone could interpret the name with their own baggage, whatever that was,” he said. “Five Wives could be a group of girlfriends or a knitting circle for all we know. Plus, we found a fun image to use for the label.”

  Today, Five Wives is a Utah favorite and was voted by Salt Lake City Weekly as the “Best New Spirit” in Utah for 2012. It has won silver medals in the San Francisco and Denver International Spirit competitions as well as the Spirits of the Americas competition.

  After Five Wives, Ogden’s Own launched its Porter series of hand-crafted flavored whiskeys: Porter’s Fire, Porter’s Peach, Porter’s Apple, Porter’s Huckleberry and Porter’s Small Batch Rye. 

  “We wanted to expand,” Conlin said. “Fireball had just come out, so we decided to create a local cinnamon-flavored whiskey. Our Fire is not as hot as Fireball; it’s more natural cinnamon with a cinnamon roll finish with vanilla. We like to take a lot of things that are popular and give them our own little twist in a way that we think makes them more palatable. A lot of people who don’t like whiskey like ours.”

  The Porter series is named for Orrin Porter Rockwell, a notorious gunslinger and wanted man. It is said that Rockwell killed more outlaws than Wyatt Earp, Doc Holliday, Tom Horn, and Bat Masterson combined, earning him the menacing title, the “Destroying Angel.” Paradoxically, he was also a devout church member and bodyguard of Joseph Smith, founder of the Latter Day Saint movement, and Brigham Young, a Mormon prophet.

  “There’s this weird mentality in Utah where the Mormons all partook of alcohol before Prohibition, but then they laid down the law and banned it,” Conlin told Beverage Master Magazine. “We like to poke fun at this paradox without being vicious.”

  The Porter labels carry the menacing face of Porter Rockwell, similar to that on a wanted poster from the mid-1800s. According to Ogden’s Own website, Porter’s Fire “combines the smoothness of Canadian whiskey with the most divine ingredients to deliver you one hell of a well-balanced flavor. Sweet, but not sugary, berry and spicy, but not too hot, Porter’s Fire captures the passion of its namesake and the carefree spirit of the old west.”

In 2017, Ogden’s Own began producing Madam Pattrini Gin, made from juniper, bergamot, coriander, cardamom, Nigerian ginger and Sicilian lemon. It’s a small run of fewer than 1000 bottles at a time, with all bottles numbered by batch. In 2019, the gin was selected as the Best Compound Gin in the United States at the World Gin Awards in London.

  What makes this gin especially unique is the namesake: Madam Pattrini was actually B. Morris Young, the son of Brigham Young, who performed in drag as an opera singer in northern and central Utah venues from 1895 to the 1900s.

  “Our goal is to bring historical figures back to life, back into the consciousness of Utah,” Conlin said. “It’s funny, but a photo of Madam Pattrini was recently found hidden in the church archives.”

While Ogden’s Own staff has fun bringing the ghosts of the past to life, they take their distilling seriously. All products are corn-based and gluten-free.

  “Our philosophy is to produce quality spirits at a reasonable price,” Conlin said. “Lots of people overprice their products just because they’re ‘craft.’ It serves us best to keep our price low.”

This philosophy has certainly paid off. Ogden’s own has grown from producing 600 cases in 2009 to 20,000 in 2019. According to Conlin, “The market is the 21 to 35-year-old drinker who is spending money on a craft product — a unique product — and has a sense of humor and wants something they can talk about when they go to events.”

Currently, Ogden’s Own has eight employees: four in sales and four in production. Overseeing production is co-founder Tim Smith, who started the Ogden’s Own ball rolling when he took his home-made hooch to Conlin’s mortgage company for advice on marketing. After “bootstrapping” their way from what was basically a small garage to a 6,400 square-foot facility, the partners now have distribution in states including Utah, Idaho, Wyoming, Oregon, Nevada, Michigan and parts of Southern California. 

  “It’s been a step-by-step process,” Conlin said.  “You have to have a distributor if the state doesn’t do it for you. You have to knock on a lot of doors. I call it shaking hands and kissing babies. We’re out politicking, meeting people, telling them about our product, doing the ‘Costco taste test,’ one by one.”

While the people at Ogden’s Own have worked their way up to become a significant presence in Utah, they now have their sights on nationwide recognition. The distillery recently raised $2 million from fans, partially via an online crowdfunding campaign, which is enabling them to move into a new 32,000 square-foot facility in April. Their new home will house a full bar, a massive production area, new offices, and an amphitheater for live music events.

  “We are ramping up considerably,” Conlin told Beverage Master Magazine.  “A year from now, we will be a much different company. Our fans have enabled us to take a whole new approach to growing. As we do, we plan to be very transparent and honest and ensure that our expenditures make sense. It’s up to us to parlay this into nationwide success.”

  As Ogden’s Own Distillery moves into the future, we will no doubt be hearing more from them, along with the ghosts who once roamed 25th street.

For more information on Ogden’s Own Distillery, visit https://www.ogdensown.com/

How Craft Beer Producers Can Incentivize Distributors and Wholesalers to Help Them Go to Market

Cyndi
lone beer glass in front of a beer stall

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

As a craft beer producer, competition is fierce. According to the Brewers Association, there were 7,346 craft beer producers in the U.S. last year competing for $27.6 billion in sales. That’s a lot of beer! And, that doesn’t even take into account competition from “The Big Five” or import beer for shares of the overall U.S. beer market.

  For craft beer producers who are looking to scale and increase sales, it might be tempting to start pouring your marketing funds into consumer marketing. But will that really make a splash? Think of the hundreds of millions in media spend by beer companies every year that you’ll be going up against.

  Could there possibly be a more efficient way to use that marketing spend? For craft beers producers who are trying to go to market, it’s important to sit down and ask yourself, “Who has the biggest impact on whether or not end consumers find my beer? And how can I motivate them to prioritize my business?”

Understanding the Craft Beer Sales Channel 

  When it comes to connecting with end consumers, craft beer producers have four options:

•    On-Site: Selling directly to consumers at your brewery.

•    E-Commerce: Selling directly to consumers online.

•    Retail: Selling to consumers through other retailers.

•    On-Premise: Selling to consumers through bars and restaurants.

  However, on-site sales are limited by geography and e-commerce sales require brand familiarity or extremely creative (or very expensive) marketing. For a scalable sales and marketing strategy, craft beer producers have to turn their attention to retail and on-premise sales and the indirect sales force that helps them achieve penetration with these vendors.

Incentivizing Distributor and Wholesaler Sales Reps

  Outside of smaller, highly localized breweries, most craft beer producers rely on distributors, wholesalers and other supply chain trading partners to market to retailers and restaurants. Distributor and wholesaler sales reps are responsible for selling vendors on the value of your beer, negotiating pricing and terms of sale agreements and ultimately getting your craft beer to market.

  There’s one small problem: no matter how awesome your craft beer is, it only a small fraction of your distributor or wholesaler’s supply mix. In this battle for mindshare, it’s up to you to educate reps about your brand, enable them to sell your product and supply them with a value proposition that inspires them to take action on your account.

  This is where an incentive program comes into play. When many people think of incentive programs, they think about rewards. But while rewards play a big role in building relationships with your channel partners and adding to your overall value proposition, modern incentive programs take a more holistic, software-driven approach.

  Today’s incentive programs act as comprehensive sales and marketing platforms that enable craft beer producers to:

•   Build mindshare with distributor and wholesaler sales reps.

•   Target promotions by qualifying participant type, regions or product line.

•   Fill data gaps within their channel.

•   Enable sales reps to sell their product to vendors.

•   Deepen relationships with partners throughout their channel.

Building Mindshare with Distributors and Wholesaler Sales Reps

  Sales reps, for the most part, sell what they know. However, in a crowded supply mix, building this awareness and product knowledge with sales reps can be challenging. While every supplier wants something from these outside sales reps, far fewer supplier focus on offering value and creating memorable brand interactions.

  Inviting these sale reps to enroll in an incentive program where they have the opportunity to earn millions of rewards or exclusive incentive travel opportunities (and perhaps giving them a generous point bonus upfront) is more than a nice gesture. It’s a strategic differentiator and an opportunity to stand out from your competitors.  

  Your rewards program also creates new opportunities for communication and engagement that aren’t strictly business. These brand interactions are an opportunity to improve personalization and build relationship capital, which can be difficult to achieve in supply chain partnerships.

Targeting Promotions to Minimize Cost and Maximize Return

  It’s worth noting that a channel partner program is an investment. When planning an incentive marketing strategy, craft beer producers need to focus on maximizing the return on their marketing spend. This means that they should target first and scale second.

  For instance, would it make more sense financially to target your program to the sales and brand managers at the distributor level or the individual reps who work beneath them? It depends on your go-to-market strategy and the size and number of distributors you work with. If you sell through smaller wholesalers with a handful of reps, who each are responsible for a significant portion of your overall sales volume, then it might make sense to structure your program to reward individual sales reps. On the other hand, if you’re selling through a number of wholesalers and distributors, or an extremely large distributor with thousands of reps, it might make more sense to target your incentive programs to sales and brand managers.

  Additionally, from those managers and sales reps, craft beer producers can set qualification thresholds, based on sales volume or engagement, to ensure that their incentive program spend is allocated toward the participants who are most impactful to their sales growth.

  Another aspect of your targeting strategy is choosing to set incentive promotions by specific regions or product lines, based on strategic initiatives and opportunities for growth.   

Collecting More Complete Data Throughout Your Channel

  Craft beer producers, like many other companies who sell into a channel, often struggle with having inaccurate and incomplete data about their channel. Your incentive program is an opportunity to motivate distributors and wholesalers to provide more complete data. There are several ways craft beer producers can use their incentive program to fill in gaps in channel data:

•   Structuring enrollment forms that capture contact information and firmographic data during program registration.

•   Including automated tools for sales reps to attach invoices or other documents as part of the program’s sales verification process.

•   Offering rewards to participating sales reps for referring other reps within their organization.

•   Rewarding sales reps for completing voluntary surveys that can be used to clean up your existing database or collect more information about your participants’ interests, demographic and lifestyle.

•   Analyzing engagement datapoints the program generates to spot highly engaged accounts that are ripe for upsells and cross-sells.

  All of this information can be used to inform your sales and marketing strategy and increase the level of personalization you offer your supply chain partners.

  However, all the data in the world is useless unless you’re able to act on it. Modern incentive software includes CRM integration, data filters, reporting dashboards and custom reports to streamline this data for optimal use.

Enabling Your Distributor and Wholesaler Sales Reps

  Do you know one of the quickest ways to build brand preference with an indirect sales rep? Provide quality sales enablement. Using proven strategies to educate sales reps on your brand and your products makes it easy for them to sell your products to vendors.

  Integrating interactive quizzes and training videos with your incentive program is a powerful tool for supplying your external sales reps with the knowledge they need to sell your beer. This education can be supplemented by your incentive program’s digital communication platforms. (If you use this kind of strategy, make sure to break things up into bite-sized pieces and focus on the highlights your partners will need to help you go-to-market). Additionally, these quizzes are another opportunity for sales reps to earn rewards, increasing the overall value proposition of your program.

Deepening Relationships Throughout Your Channel

  Finally, in addition to short-term sales growth and marketing penetration, your incentive program has another benefit that will have a lasting impact on the success of your go-to-market strategy: relationship-building. Non-cash rewards are a social currency that achieve emotional impact and memorability with sales reps at distributors and wholesalers. In addition to motivating sales growth and reinforcing desired behavior, the rewards your program offers create a sense of personalization.

  For craft beer producers, your distributors and wholesalers are more than just conduits to the end consumer. They are your partners – an indispensable part of your go-to-market strategy. Offering your sales reps the opportunity to choose from exciting rewards or treating top performers to unforgettable incentive travel experiences represents the type of brand interactions that will set you apart from the competition. But more than that, these rewards inspire your distributor and wholesaler sales reps to emotionally invest in your brand and take an active interest in your success.

Unsure About Where to Start? Be Smart, Explore Your Options and Focus on Scalability

  An incentive program can be an integral part of a craft beer producer’s go-to-market strategy. However, what about companies who have never used this type of strategy before? If you are interested in creating a channel marketing program for your distributors and wholesalers, do your homework. Identify a goal for your program and the software functionalities you’ll need to achieve that goal.

  Compile a list of incentive program providers who fit your requirements and who have a proven track record, with case studies and testimonials to prove it. From there, begin reaching out to these providers and enlist their help in planning your incentive strategy. Use these conversations to refine your strategy and learn more about what has worked for companies with similar goals and similar distribution channels to yours in the past.

  Once you’ve decided on a provider, you don’t have to go all in. It’s prudent to start small, maybe with a pilot program or highly targeted incentive promotion. You can always scale, once you’ve proven that you can do this successfully.

  However, it’s also important to have a sense of urgency. As craft beer sales continues to grow, so will competition for craft beer dollars. Beating your competitors to building an incentive program for your distributor and wholesale sales reps can be a major competitive advantage. Plus, you owe it to your future customers to help them find their new favorite beer!

  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

Distribution Agreements: Negotiate Your “PreNup” Carefully

Cyndi
Business people shaking hands, finishing up a papers signing
Business people shaking hands, finishing up a papers signing. Meeting, contract and lawyer consulting concept.

By: Brian D. Kaider, Esq.

Starting a brewery requires learning a lot of new skills and practices that have nothing to do with making great beer.  One of the most confusing and frustrating is the issue of distribution.  If their state allows, most new breweries initially distribute their own products and, if the brewery is content to be relatively local, that might never change. 

But, in many cases, brewery growth necessitates working with a distributor.  This is not a relationship to be entered into lightly. A distributor becomes an ambassador for the brewery’s brand and, once retained, the supplier may have little control over how its beer is marketed. Further, these relationships can be difficult or financially impossible to break once established.

  Supplier/distributor relationships are governed by franchise laws in most states. In the absence of franchise laws, the relationship is defined entirely by a distribution agreement between the parties. But, even in franchise states, the distribution agreement can play a critical role, particularly in the termination of the distributor relationship.

  Too often, however, breweries accept a distributor’s “standard” agreement and when the relationship sours, the supplier finds that they are stuck with no viable option to terminate. The best practice is to engage an experienced attorney to negotiate the terms of the distribution agreement. While even the best attorney cannot evade state franchise laws (which generally prohibit a distributor from waiving its rights), there are ways an attorney may help bring balance to the supplier/distributor relationship.  Some of the key terms to negotiate include termination, territory, brand scope, and exclusivity.

Termination

  The most critical section of the agreement sets forth the manner and circumstances under which a supplier may terminate the distributor. In a franchise state, the law typically says that a supplier may terminate for “good cause.” If good cause is defined in the law, it is paramount that the distribution agreement mirror the language of the law, because in many cases, a contract that contradicts the law will be held invalid, leaving the supplier in the position of effectively not having an agreement at all.

  For example, the Virginia Beer Franchise Act states that good cause includes “failure by the wholesaler to substantially comply, without reasonable cause or justification, with any reasonable and material requirement imposed upon him in writing by the brewery.”  Further, the Act provides, “good cause shall not be construed to exist without a finding of a material deficiency for which the wholesaler is responsible.”  Tracking that language, a distribution agreement in Virginia should clearly define certain of the distributor’s obligations as “material requirements” and explicitly define certain actions as “material deficiencies.” 

For example, the Virginia law identifies failure to “maintain a sales volume” of a brewery’s brands as being a reasonable and material requirement.  But, the law does not specify what volume is required.  So, the distribution agreement should clearly lay out specific minimum sales volumes (preferably on an escalating scale) and identify the requirement to hit those volumes as a material requirement of the contract. 

  When the law does not define good cause, and in non-franchise states, it is essential for the distribution agreement to do so. The contract should clearly set forth the distributor’s requirements that are critical to the business relationship and for which failure to perform will be grounds for termination.

Examples of common requirements include: meeting specified sales and marketing goals, maintaining appropriate records and reports regarding inventory and sales, transporting and storing the product under specified temperature and lighting conditions, exercising adequate quality control measures to ensure product freshness, and paying invoices within a specified time frame. It is also common to include termination rights if the distributor is declared bankrupt, enters a voluntary’ petition for bankruptcy, enters into a compromise or agreement for the benefit of its creditors, or fails to maintain in good standing all Federal and State licenses and permits necessary for the proper conduct of its business.

  In some cases, sale of the distributor or even a change in the ownership structure may be justification for termination.  In February 2019, Bell’s Brewery of Kalamazoo, Michigan completely pulled all of its distribution in the Commonwealth of Virginia.  The issue was that its distributor in Richmond was sold to a subsidiary of Reyes Beer Division, the largest distributor of beer in the United States.  Per its distribution agreement, the original distributor was to have provided Bell’s with certain information about the sale to Reyes, but it failed to do so and Bell’s believed that because it did not have the opportunity to properly vet the new distributor, termination of the franchise was warranted.  To this day the dispute has not been resolved and Bell’s beer is not available in Virginia.

  In most states, a supplier must compensate the distributor for the lost business even if the supplier is able to terminate for cause.  Sometimes the law simply says the supplier must pay the distributor the “fair market value” of the distribution rights.  There can be an expensive battle just to determine that compensation if fair market value is not defined in the distribution agreement.  Often the value is defined as a percentage of the prior year’s case volume multiplied by some dollar amount per case. The “standard” contracts pushed by some distributors can be very severe in this section. In the beer industry, it is not uncommon to see values set at an entire year’s worth of profits times a multiplier that can range from 1.5 to many times higher. In practice, often a new distributor will buy out the distribution rights from the old distributor, but if the supplier wants to return to self-distribution, this buy-out provision may be cost prohibitive. 

  While the beer franchise laws in most states were written at a time in which large beer manufacturers had significant market power over small distributors, those roles have substantially reversed.  Slowly, state laws are being revised to accommodate this change.  In Maryland, for example, the law changed on January 1, 2020 to eliminate the “for cause” provision of termination for suppliers who manufacture fewer than 20,000 barrels per year and the termination notice was shortened from 180 days to 45.  However, the manufacturer still has to give the terminated distributor fair market value of the franchise.

Territory

  Depending on the size, experience, and reach of the distributor, there may be an opportunity to creatively carve out different territories. Territories are most commonly limited to certain states. However, a supplier may be able to limit a smaller distributor to certain counties or even specific types of establishments (grocery stores, but not restaurants, for example). One of the clearest breaches of the distribution agreement, that may constitute good cause for termination, is for a distributor to make sales outside of its contracted territory. 

Brands

  Generally, when a distributor is hired to carry a brewery’s brand, it has the right to all of the products in that brand. But exactly what constitutes a  ‘brand” is unclear both in the statutory language of most state franchise laws and in many distribution agreements. 

In Maryland’s beer franchise law, for example, “brand” is not explicitly defined, but the law appears to favor the distributor in terms of brand scope. Specifically, section 105 of Maryland ‘s Beer Franchise Fair Dealing Act prohibits a brewery from entering into a beer franchise agreement with more than one distributor for “its brand or brands of beer” in a given territory. One might argue that the language “or brands” means that the first distributor has the right to all brands of the manufacturer in a given territory.

In fact, that very’ issue was litigated in the 1985 case of Erwin and Shafer, Inc. v. Pabst Brewing Co., Inc. and Judge Couch, writing for the panel of The Court of Appeal of Maryland, disagreed. The court held that if a brewery retained a distributor to handle one or more of its brands within a territory, it could not then contract with a second distributor within the territory for those same brands. It could, however, contract with a second distributor to carry a different set of brands.

  How far the court would take its interpretation of what is a “brand” is unclear, however. In the Pabst case, the first distributor was given the right to distribute Pabst brand beers, but Pabst later merged with Olympia Brewing Company and gave the second distributor the right to sell its newly acquired Hamm’s brand beers. Whether the court would have allowed the brewery to contract with one distributor for Pabst and another for Pabst Extra Light it did not say.

Exclusivity

  Even if rights under a distribution agreement cannot be divided by brand (as in the case of the beer franchise law in Maryland), some states may nevertheless allow a supplier to contract with more than one distributor within a territory. If permitted in their state, a brewery should ideally enter into all of its distribution agreements for a given territory simultaneously, providing notice to each distributor. At a minimum, the brewery should ensure that the first agreement entered into is explicitly designated as non-exclusive. Otherwise, the distributor may view the agreement as giving it exclusive rights to the territory and could sue the brewery for diminishing the distributor’s business if it were to engage a second distributor in that territory.

Final Thoughts

  Whether a brewery is in a franchise state or not, it is critical that it review and negotiate its distribution agreements carefully, with the assistance of an experienced attorney. It is also important to remember that the supplier’s diligence does not end when the agreement is signed. No matter how well the terms of the distribution agreement are negotiated and drafted, they are effectively useless if the supplier cannot back up its claims for good cause.

Accordingly, thorough documentation is essential. If a distributor is not meeting sales goals, mishandling product, or failing to provide adequate reports, they must be given written notice of those deficiencies each time they occur.

  There are great distributors out there who become essential partners in a brewery’s business. But, sometimes those relationships can sour and signing an agreement without anticipating complications down the line can make it virtually impossible to sever those ties. A little forethought and planning and a lot of diligence will go a long way toward a successful termination of a bad relationship.

  Brian Kaider is a principal of KaiderLaw, an intellectual property 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.

Suds & Soldiers: Beer and World War I, 1914-1919

Cyndi
beer carriage

By: Doran Cart, Senior Curator, National WWI Museum and Memorial

By the time of World War I, which started in 1914, beer was already an ancient beverage made and consumed by most the nations involved in the war. In light of the long history already written about beer, this article will center on the personal, official and period-printed references of beer during World War I held in the archives of the National WWI Museum and Memorial in Kansas City, Missouri.

  Many of the early war photographs show soldiers, especially German, posing for their gone-to-war photographs with beer mugs in hand and often sitting on beer kegs. Ceramic beer tankards were illustrated with scenes of soldiers’ service so they could be reminded of what they had gone through while enjoying their favorite brew. A German/Anglo brewery in Tsingtao, China was in production at the beginning of the war and was there when Japanese forces attacked the German garrison taking control. A graphic illustration of that attack is on exhibition at the museum. The brewery still exists.

  Changes in the opening and closing hours of pubs in England occurred during the war when the situation became dire from many of the war industries’ workers spending more time drinking beer and “other intoxicating liquor” than producing artillery shells and airplanes. The Defense of the Realm (Consolidation) Regulations of 1914 specifically prohibited the sale and consumption “on weekdays 12 noon to 2:30 p.m. and 6 p.m. to 9 p.m. and on Sundays [the same hours].”

  British soldiers wrote in their diaries about beer:

“Hallowe’en was celebrated in our billets – beer, soup, roast beef, plum duff.” A. Stuart Dolden, 1st Battalion, London Scottish Regiment

  October 1916 – “I was amazed to get two bottles of Guiness to drink.” George Coppard, British Machine Gun Corps, after being wounded.

  C.H. Williams, 5th Battalion, the Oxfordshire and Buckinghamshire Light Infantry, British Army, wrote after Christmas of 1916: “We had our Christmas dinner in Albert, France in an old sewing-machine factory.  We had beer for our dinner – plenty of it – and a good tuck-in to go with it!  Roast pork!  Beautiful after bully beef!” [Bully beef was canned processed beef issued as a ration].

  In England in 1918, the Hart Family Brewers produced a commemorative extra pale ale called the “Flyer.” It was brewed to honor Wellingborough, England’s “Own Flying Ace, Major Mick Mannock.” Major Mannock was a Victoria Cross recipient for his World War I actions in which he recorded 61 aerial victories with the Royal Flying Corps (later the Royal Air Force). He was killed over France on July 26, 1918.

  Although the American Expeditionary Forces were technically “dry,” prior to the US 18th Amendment ratified in 1920, enterprising soldiers soon learned where the beer and wine were. One US Signal Corps photograph is captioned: “American soldiers in a captured German trench drinking beer out of steins and smoking cigars.”

  From the papers of Captain Clarence J. Minick, 361st Infantry, 91st Division the following order was found: “Headquarters 3rd Battalion, 91st Division, Sarrey, France, July 24, 1918. Extract General Order No. XXI. 1. “The following regulations for the government of troops billeted in Sarrey are hereby published for the guidance of all concerned: (a) Cafes will be open to troops for sale of light wines and beers during the following hours: 1:30 A.M. to 1:00 P.M. 6:00 P.M. to 9:00 P.M. Absolutely no drinking of other intoxicants will be permitted and all cases of intoxication will be summarily dealt with. Wine or beer purchased in cafes will be used on the premises and not carried away in bottles or other receptables.”

  At the Battle of St. Mihiel, France, September 1918, this report of the 353rd Infantry Regiment, 89th Division Intelligence Section related:

  “In the evening of September 13, the Regimental observers established an O.P. [observation post] on the high ground south of Xammes. While occupying this O.P. the observers lived on the fat of the land. An abandoned German commissary in Xammes furnished bread, honey, butter, jam, gold-tipped cigarettes and cigars – from the well-kept German gardens in the vicinity came a variety of vegetables – and crowning all, German beer, wine and schnapps were on tap in former Boche (German) bars (for the ‘dry’ All-Kansas regiment).”

  During the American occupation of Germany in 1919 when the rules regarding consumption of beer and wine had been unofficially loosened, Charles MacArthur, 149th Field Artillery Regiment, related that in his [cannon] battery’s stop in Bittenburg, “we ran into real German beer, a little watery for the famine in grain.”  Another discovery was made in Bittenburg:  eierkuchen, or German waffles.  “With a helmet full of flour and a little corn syrup any hausfrau could produce an elegant set of waffles.”  Evidently, the waffles reached such an esteemed place that “the very name of eierkuchen was transferred to anything that looked appetizing, especially young women.”

  A Captain Biggs related that the clothing worn by German civilians seemed serviceable, but that the “shapeless, heavy shoes” was a noticeable feature.  Much of the material was ersatz [substitute], made of paper products.  Beer was plentiful at 20 to 30 pfennings a glass, but “of a poor grade,” as was the wine.

  As part of the agreement for the occupation of Germany after the signing of the Armistice on November 11, 1918 was one unpopular requirement that all dram shops be closed except during a few hours of the afternoon and early evening.  The sale of any intoxicant except beer and light wines was prohibited.

  A printed announcement of a “Reunion and Smoker” party for the 77th Division’s MP Company on October 25, 1919 at the 77th Division Association Club House in New York City. states that “they will organize an American Legion Post and there will be a keg. Organized by Francis N. Bangs.” Captain Bangs was in the MP Company, 77th Division, AEF.

  A postcard with an inscription, described the outdoor tables in Bourges where the French would gather to drink and socialize, as pictured. Inscription on the back: “the French people like to have this little beer table outside. This is very typical.”

  On a printed card from the YMCA, “The Y.M.C.A accepts no responsibility for money or valuables kept by soldiers during the night. These should be handed for safe keeping to the Leader in charge of the Hut. Overcoats, rifles, or other equipment should be stored in the cloak room. You are urged to leave no articles of clothing or equipment in the cubicle after dressing or about the Hut at any time. By order of the Police, Beer and Spirits must not be brought into the Institute.”

  From the service of Private Walter G. Shaw, 18th Infantry Band, 1st Division. He died at Charpentry in the Argonne in 1918:

  Oct 31, 1917 “I like France fairly Well don’t think I would like to live here always [sic] they have fine roads here. white and red wine can be bought for 1.50F a bottle (30c) some of the soldiers get tanked up on it I don’t like it because it is so sour French people have it with every meal. Champagne can be bought for 9.00F a bottle $1.75 this is extra dry costs about $7.00 in the U.S. Beer costs .30 centimes a bottle 10c….”

 From the service of Corporal Reid Disman Fields, Ordnance Detachment, 13th Field Artillery, AEF:

“Feb. 23/19

Dear Clara:

  No doubt you will be surprised to hear I am going down into Germany. Left Mehnin today 11AM. Am going to the Third army. So far as I know somewhere near Coblenz. So don’t expect I will be back very soon. Tell your mother I will drink her share of beer. Ha! All for the time so Bye Bye, Reid.”

  The roster and menu for Christmas dinner, 1915 from the 133rd Company, US Coastal Artillery Corps, Fort Terry, New York listed that the dinner included oyster stew and crackers, roast turkey, oyster dressing, cranberry sauce, mashed potatoes, creamed corn, creamed peas, stuffed olives, tomato catsup, celery, pumpkin pie, mince pie, cocoanut layer cake, chocolate cake, bananas, oranges, apples, grapes, figs, cigars, cigarettes, apple cider, and bottled beer.

  From US volunteer truck driver, Ned Henschel, December 8, 1918, Verdun, France:

  “…a rumour floated around that there was beer to found in a neighboring village. Another lieutenant and I walked eight kilometres to investigate – and found that it was all wrong; there wasn’t even Pinard!” Pinard was a red French table wine.

  During the Easter Uprising in Dublin of 1916 of Irish citizens against British rule, the British Illustrated War News of May 10, 1916 reported that British troops took cover behind a barricade of beer barrels.

  One postcard shows a “German concrete cellar used as cooler for beer, in woods, Meuse, France.” A British humorous postcard shows a tent surrounded by flood waters with a downcast soldier poking his head out lamenting “‘Ah! If it were only beer.” A German postcard that a Karl Rosendahl in writing to Frieda Rosendahl of Riemsloh, Germany related: “My dear Freidelchen, We are sitting in the Train with a nice glass of beer and send you greetings.” [translated to English].

  A letter from F. Thunhorst of Riemsloh Germany to Carl Rosendahl, June 3, 1915, related that one of their acquaintances “Old [illegible] is still the same and he just keeps going. The beer still tastes excellent, and he still drinks a few pints daily. He sends his greetings.” [Translated from German to English].

  American Dale E. Girton, Base Hosp. #78 wrote on May 8, 1919,

“Hello Rummy:

  I guess that is a fitting salutation for one who has told me in a – past letter he has started drinking Rum, BEER, Wine & Cognac. How about it? Haven’t heard from you for some time and we are expecting to leave Toul for a port of embarkation at any day now, so I thot [sic] I would write you a word so that if I am quite a while.”

  Beer was universal in WWI. It was used to quench thirst, to enjoy in comradeship, to relax and possibly, to help for a moment, to forget about the horror of war.

  From the Archives of the National WWI Museum and Memorial.

Profiling Software: Used by the Breweries, Cideries, and Distilleries

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map seen in an iphone

By: Becky Garrison

As we enter into a new decade, an increasing number of breweries, cideries and distilleries are moving from recording their finances, employee logs and other data from offline pen and pencil accounting methods to online software systems. Here’s a sampling of some of the latest techno-logical developments that are specifically geared towards helping these outfits better manage their businesses.  

ShiftNote

  ShiftNote is an online manager logbook and employee scheduling software. The program, re-leased in 2002, gives owners, managers and employees the ability to communicate in one place. Employees can change their shifts and request time off in a few easy clicks. Then managers can approve or deny these changes and requests.

  The scheduling feature allows users to create and publish schedules and shift notes that can be viewed on any mobile device. Additionally, the manager log book can track key daily sales, re-pair and maintenance schedules, upcoming events and labor stats. As this logbook is entirely cus-tomizable, business owners can add custom categories and stats contingent on their particular needs.

  Help articles, tutorials and free screen share trainings are available for those who need assistance in setting up and using ShiftNote. A major software update slated for 2020 will offer new and enhanced features.

Whiskey Systems Online

  Whiskey Systems Online is a complete production tracking and TTB reporting system tailored to the unique needs of American craft distillers. Launched in 2014, this software offers complete distillery operations tracking, from raw materials to cases shipped out. Features include invento-ry and barrel management, cost of goods sold, manufacturing cost accounting, forecasting and planning, batch tracing, auto-generated TTB monthly reporting and federal excise tax returns, QuickBooks integration, employee task management, TTB audit preparation, success metrics dashboards and much more.

  Whiskey Systems’ propriety hardware interface allows distillers to track the temperature and humidity of their warehouse during a barrel’s entire aging lifecycle. By tying the aging history to their Whiskey Systems barrel inventory, the software can both optimize aging conditions and eliminate manual data entry from a third-party monitoring system.

  In 2020, the company plans on launching a brand new interface to improve the user experience and navigation. The update will include more production planning and forecasting tools and more success metrics and dashboards. As Whiskey Systems is a “subscription as a service,” there are no required downloads, and eve-rything is available via a browser. Users just activate their subscription online for immediate ac-cess. Whiskey Systems has extensive online resources such as training videos and help pages, as well as one-on-one support and set up for no additional charge.

Daruma Tech

  Since 2015, Daruma Tech has been developing mobile loyalty applications for beer guilds. For the more significant guilds and associations, it has a customizable solution that can be tailored to suit their marketing needs. For smaller guilds, the “lite” version can help them get started with their digital loyalty program.

  This loyalty program software rewards consumers for visiting participating locations. App users can keep track of the breweries they’ve been and the places they want to visit next. Users collect stamps at each brewery and claim prizes based on the number of stamps they’ve collected.

  Brewers who participate can access a portal where they manage their content, including location-specific information, beers, events and deals. The app also provides a marketing channel where brewers can communicate directly with their target audience, as well as a social component where users can share their thoughts on different breweries and beers.

  The mobile app is powered by a cloud-based mobile content management system. Participating locations can update the content in real-time through their MCM. There is nothing to maintain, download and install, as it’s also a subscription-based service. A knowledge library where users can access help documents is available online.

  Current guild users of the app are New York State Brewers Association, Ohio Craft Brewers As-sociation, Brewers of Pennsylvania, Massachusetts Brewers Guild, Rhode Island Brewers Guild, Connecticut Brewers Guild and the Washington Beer Commission.

  In 2020, Daruma Tech will begin offering these services for other craft beverages and related craft foods.

KegID

  KegID is a cloud-based asset scanning and tracking application that’s been available to brewers since 2001. The software allows brewers to track how many kegs they currently have in use by providing visibility and insight. This application can create accountability by pinpointing the lo-cation of a barrel, its contents and dwell time.  

  Scanning can be done with a variety of equipment, from Android or iOS mobile devices to fixed in-line scanners. In addition to scanning kegs at the brewery, they can be scanned in the field and marked for special handling if any part of it is found to be damaged or malfunctioning. It can al-so identify kegs that are due for routine maintenance.

  Also, KegID is automatically included on any kegs leased through its lease-to-own solution, KegFleet, at no extra charge. Each brand new European keg comes laser-etched with the scan codes and the ID numbers pre-loaded into the application. They are ready to scan and track upon delivery. 

  In addition to online resources, a team of people located in KegID’s Houston-based office are available to provide personal assistance to new users during business hours.

  The app can also be used to manage other reusable assets like pallets and tap handles.    

Kegshoe

  For the past four years, cideries, breweries, distilleries and other craft beverage producers worldwide have been using Kegshoe tracking software. Using either an iOS or Android app alongside Kegshoe’s barcode stickers, producers can track their keg fleets throughout the entire production, storage and distribution cycle.

  The application then offers insights into the status, location and development of a keg fleet, ensuring that turnover cycles are kept in check and kegs are not being lost. Having the reporting and logging tools available to show the contents, location and details of each barrel allows customers to manage their fleet inventory better.

  To make setup and operation as convenient and affordable as possible, the company eliminated the need for additional hardware. Producers can download the Kegshoe app on their devices and start scanning. Other features include rental customer logging and tracking, and production batch assignment and monitoring 

  Kegshoe is currently in the process of releasing a craft beverage-focused customer relationship management software. The CRM will help to provide an industry-tailored system for sales reps and managers to log and manage their customers, sales cycles and productivity. With both desk-top and mobile functionality, it is meant to make the sales process for craft beverage producers as efficient and affordable as possible.

  All new customers receive a series of onboarding materials, including detailed product tours that walk them through the app and desktop software, as well as a support article library. Additional-ly, Kegshoe offers around-the-clock support, ensuring all issues and questions are addressed promptly and don’t interrupt brewing operations.

Small-Batch Maps

  Released in 2019, Small-Batch Maps is designed to help breweries and distilleries better manage their distribution and sales. The company wants to lessen the challenges of market forecasting by helping producers determine if they should market one product or concentrate on all of their of-ferings.

  The software allows potential customers to search for products on a website, and for beverage companies to gain marketing insights, estimate product needs and discover new distri-bution regions. Producers can then use this data to market the products most in-demand, or those with less traction.

  Breweries and distilleries can easily add Small-Batch Maps to their websites and other online properties. Once they’ve added the feature, they can head over to their website, log in, and add new locations as their distribution networks grow.

The Best Tanks and Tank Systems for Distilleries

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distillery machine set

By: Alyssa L. Ochs

Tanks are an essential part of operating a distillery, and there is a lot to know about this particular type of equipment. While there have been many improvements made to tanks and tank systems in recent years, distillers are still looking for more features and options from these products.

Types of Tanks Used in Distilleries

  Tanks are used for numerous functions in a distillery, primarily for blending, fermenting, storing, distilling and filtering. Since tanks are used for multiple purposes, it is crucial to use the right type of tank for each job.

  Storage tanks are typically single-wall tanks that store a spirit before proofing, filtering and blending. These tanks commonly come with volume indicators, scales, vent pipes, pressure release valves and access ports. Meanwhile, blending tanks mix spirits and water during the blending, proofing and hydro-separation processes. These come in a range of standard sizes and can have a motorized agitator, sampling port and temperature gauge.

  Derrick Mancini from Quincy Street Distillery told Beverage Master Magazine that his distillery uses polyethylene tanks for fermentation. Quincy Street is a small distillery in Riverside, Illinois, and the distillery’s modest size is reflected in its equipment.

  “These are Ace roto-molded types,” Mancini said. “We ferment a wide range of materials in them, such as whiskeys and Eau du vies, and we do not use any cooling. But in the smaller ones, we may use some heating when required, as for rum.”

  For the storage of spirits, Quincy Street Distillery uses 400-liter stainless Letinas for high proof final spirits and high wine.

  “Intermediate distillate may be stored in plastic 55-gallon drums or 275-gallon IBC totes,” Mancini said. “We have a 150-gallon stainless mash tun as well. In addition to tanks, we have 12-gallon and 25-gallon stainless fustis and 6-gallon glass carboys for small container storage.”

  When asked about the pros and cons of the tanks he uses, Mancini said, “Plastics are cheap, but over time can wear enough they need to be replaced. They are not suitable for very high-proof spirits and somewhat harder to sterilize than stainless. Stainless tanks are great, but far more expensive to initially purchase.”

  Meanwhile, Ethan Poole from Vance Metal Fabricators told Beverage Master Magazine about the many fermenters that his company has fabricated for distilleries, as well as hot liquor tanks, cold liquor tanks and storage tanks. Headquartered in Geneva, New York, Vance Metal is an ISO 9001:2015-certified, large-capacity metal fabricator and weld shop that serves many industries, including heavy manufacturing, technology and agriculture.

  “These fermenters have very efficient cooling and heating jackets placed on the main body sections of the tanks that can be used with glycol or steam since they are rated for high PSI,” Poole said. “We can also place jackets on the bottom or top heads if the producer needs more coverage. Our strength at Vance Metal is customizing tank setups for each producer’s specific needs.”

  Matt Kramer, the regional sales manager for beverages at the Paul Mueller Company, described the three products his company offers that craft spirits distillers commonly use: fermenters, bulk spirit storage tanks and the maxxLūp infusion system. Headquartered in Springfield, Missouri, the Paul Mueller Company has been in the processing equipment business since 1940, and specializes in stainless steel tanks, heat transfer and industrial construction services. Tank Services offered include inspection, modifications and alterations, repair and relocation.

  “Our fermenters are most commonly used to accurately control the temperature during fermentation of the mash,” Kramer said. “We have jacketed heat transfer that maintains the proper temperature and an internal CIP system for ease of cleaning to stop unwanted bacterial growth and prevent off-flavors. Our storage tanks can be built up to 40,000 gallons and come with or without heat transfer.”

  Kramer went on to describe how flavor infusion has become increasingly popular among distilleries and how Paul Mueller’s maxxLūp flavor infusion system has revolutionized the way that distillers innovate.

  “The maxxLūp’s system allows users to extract aroma and flavor out of ingredients in much less time than other traditional methods,” Kramer said. “Users have seen up to a 50% reduction in ingredient usage because of the design of the equipment. All of our equipment is designed, fabricated and finished to beautiful aesthetic standards in Springfield, Missouri. The level of quality will make them a showpiece in anyone’s craft distillery!”

Tank Improvements in the Industry

  Tank manufacturers have been getting more innovative over the years and making improvements to their products to serve distillery customers better.

  “The improvements made to our tanks over the years at Vance Metal are laser welding the jackets to the tank bodies; using square tube legs instead of an open back style (so there is less surface area to clean); 2b prime finish on the inside of the tank; and #4 finish on the outside,” said Vance Metal’s Poole.

  “Using insulation and cladding can improve the efficiency of your tank as well,” Poole said.

  Kramer from Paul Mueller Company noted how the maxxLūp has upped the game on infusion and how the circulation tank is the most versatile and efficient adjunct-dosing system on the market.

  “With a removable screen design, it can handle a wide variety of adjuncts and use less of them for the same flavor profiles,” Kramer said. “The maxxLūp sits on casters so it’s easily mobile and a safe alternative to infusion that doesn’t require entering a tank.

  Kramer also mentioned that distillers are typically working at around 78 degrees Fahrenheit and not getting a lot of condensation or energy loss. Still, for those needing more temperature control, insulation can be added.

  “We use beadboard, Styrofoam and poly-iso type insulations on our fermenters,” he said. “Insulation prevents temperature fluctuations and brings greater energy savings.”

  “For stainless steel storage tanks, we craft them to the customer’s specifications,” Kramer said. “We have highly experienced fabricators in a state-of-the-art manufacturing facility, and we possess all the accreditations and certifications needed to meet your specifications, including ASME code, complete weld passivation and turnover packages.”

  However, there are still tank improvements that distillers would like that would make production easier and more efficient. For example, Mancini of Quincy Street Spirits would love to see more incorporation of weighing scales into larger stainless-steel tanks.

New Tank Buying Considerations

  There are many features to look for when you are in the market for new distillery tanks, whether you are just launching a new business or upgrading your current tank systems. Mancini from Quincy Street Distillery said that the top considerations his distillery takes into account are quality and price.

  Concerning the significant differences between tank systems, Poole said, “We see the most difference in the heavier gauge material we choose to use, making our tanks more rugged, customized options for each producer’s needs and building requirements.”

  Kramer of Paul Mueller Company explained how the type of heat transfer on Paul Mueller Company equipment is unique.

  “Our Temp-Plate inflated heat transfer is manufactured using resistance-welding, which is more cost-effective and precise than laser welding,” he said. “Our maxxLūp infusion system brings the notes and flavors to your spirit in less than half the time of typical infusion methods. No one has the proprietary design of our maxxLūp.”

  “Whether you’re buying a storage tank, fermenter or an infusion system, you need to know what your size and process requirements are, any dimensional constraints at your facility and access considerations to the building,” said Kramer. “When buying a fermenter, we recommend keeping a height-to-diameter ratio of about 1.5:1 to 2:1. Sometimes, customers will request to go taller to preserve space in their facility, but you have to remember that the taller the fermenter, the greater the liquid-height pressure on the yeast. Yeast doesn’t like too much pressure, and this can be harmful to the fermentation process.”

  “Make sure you discuss the future of your operation when planning your building layout and making your equipment purchases to leave yourself options for growth,” Poole of Vance Metal Fabricators offered as a piece of advice to distilleries. “Everyone operates under a budget, but planning for certain aspects will save you time and money in the future.”

Important Tank Supplies & Accessories for Your Brewery or Distillery

Cyndi

By: Alyssa L. Ochs

tanks wrapped over

High-quality and reliable tanks are one of the most essential parts of any brewery or distillery. However, there are many components involved in keeping tanks in good condition and well-monitored throughout the beverage-making process. Experienced brewers and distillers use various tank supplies to keep their tanks working well for many years into the future and to produce excellent craft beverages.

Here is an overview of some of the most important tank supplies and accessories to stock up on and use regularly in a brewery or distillery.

Basic Tank Needs

  Wraps are one of the most important tank-related products that breweries and distilleries should invest in because they provide fluid temperature control for tanks. Wraps also reduce condensation and allow fluids to circulate with a cooling jacket on for thermal control. Glycol wraps help control the fermentation process and are also referred to as glycol jackets. These products are put on the bottoms and sides of tanks to maintain beverage temperatures, regardless of the beverages’ fill levels. This is especially important on packaging days of the year. Overall, breweries and distilleries typically look for wraps made with lightweight and flexible fabric that’s easy to apply and manipulate as needed.

  Insulation is useful for craft beverage tanks because both hot and cold temperatures are required from these tanks. Common insulation materials are fiberglass and stone wool. Insulation helps to counteract high humidity in a brewery or distillery and also prevent burn and freezing so that ice does not form on the pipes. Since insulation helps resist corrosion, keep mold away and save energy, it is also a way for breweries and distilleries to become more efficient and sustainable. For example, Synavax™ multipurpose coatings use a liquid wrap insulation to coat the equipment and cover exposed valves to prevent energy loss. Just keep in mind that staff members must to be trained thoroughly on insulation safety, especially when working around hot pipes.

  Meters are another crucial piece of equipment used alongside tanks in the brewing and distilling processes. Liquid pressure and vacuum gauges come in both analog and digital formats, with digital versions typically being more expensive. Common sizes are ¼ inch to 1.5 inches, and stainless steel is the most common meter material used in the food and beverage industry. Meters often use two pressure transmitters to measure the beverage level – one for the head pressure and the other for the total pressure. It is that differential that’s really important number to steadily monitor. Magnetic flow meters often range from ½ inch to six inches and provide readings to minimize losses in the beverage-making process. Meanwhile, temperature sensors monitor a beverage’s temperature so that you can quickly adjust temperatures that become too high or low. Regardless of the chosen product, it’s always important to have hygienic process fittings for meter sensors.

  Tank Stands, a less technical but equally important product that goes hand-in-hand with tanks. Stands are usually made from stainless steel and can accommodate 100, 200, 300, 500, or more liters for the right fit with your tanks. Stainless steel pipe stands for brite tanks are available to fit 1.5-inch and two-inch sizes. Some stands accommodate just one large tank, while others fit several tanks and are ideal for small batches. Some smaller tanks have wheels to make them transportable in case mobility is convenient for your operations.

Top Tank Supply Products

  Dean Thompson, the brand manager for Flextank USA, told Beverage Master Magazine that his company’s most popular tank products among breweries and distilleries are its line of SS sanitary fittings, fermentation locks and oak adjuncts. This company manufactures and assembles all of its vessels in Vancouver, Washington and distributes them worldwide.

  Among the most-used products throughout the beverage industry is Flextank’s AK1T – Combo 6-Bolt Flange Accessory Kit in the 1.5-inch size that includes VF1, BV3 and SV1T. This kit includes a complete drain valve installation and a Tassilini sample valve, and it fits all Eco and Dexter Maturation and heavyweight tanks, plus the Apollo Fermentor. Other popular products are Flextank’s butterfly valves and FL1 Fermentation Lock.1 for use on Eco Tanks and Dexter Lids purchased prior May 31, 2014. Meanwhile, the company’s FC060-50-70-80 FlexChill is an exterior wrap chilling system used with glycol chillers and designed for cylindrical tanks in two standard sizes.

  “Our oak staves are French and American oak and available in different toast levels and sizes for different tank sizes,” Thompson said. “These are made with directions to add up the staves needed for use. An example is if you need 80 gallons, you can add the staves from the 50-gallon tank and then add the 30-gallon tank, and now you have what you need for the 80-gallon tank.”

  Miyuki Clauer of ATAGO U.S.A., Inc. told Beverage Master Magazine that ATAGO’s most common product line used for craft beverage tank monitoring is its In-Line Refractometer PRM Series. Based in Bellevue, Washington, ATAGO U.S.A. is a leading manufacturer of refractometers, polarimeters, salt meters, acidity meters, pH meters and saccharimeters.

  “The PRM series offers a digital display section with a seven-segmented LED that displays the temperature and measurements,” Clauer said. “Using output methods, such as RS-232 or 4-20mA, the data can be transmitted to a PLC system for system automation. It offers lab-grade accuracy across the full range of refractive index, Brix or user-defined concentration scale. The PRM series is equipped with an alarm output function that transmits a signal when it detects values exceeding preset high- and low-limit values.”

  Clauer also explained how these inline units use COP (clean-out-of-place) and CIP (clean-in-place) methods for easy cleaning. This is always a valuable feature for busy breweries and distilleries.

  “The detection section occupies a small footprint, taking up very little space and offering an installation option to be directly mounted to the tanks or piping systems,” Clauer said. “The unit can be easily removed without requiring previously acquired skills to be easily removed and installed for COP. The prism section is completely flat and can be easily cleaned once removed. For CIP, users can install an optional accessory and let the ultrasonic cleaner prevent utterly unavoidable sample build-up around the refractometer’s prism surface. Another option is the prism wiper, which attaches directly facing the detection section of an inline refractometer installed in the piping system to manually wipe buildup off the prism surface.”

Other Tank Accessories to Consider

  In addition to wraps, insulation, meters and stands, there are many other tank products that can come in handy during the brewing and distilling process. For example, your beverage operations may benefit from carbonation stones, CIP spray balls and hydrators. Racking arms, valves, sight glasses, basic thermometers and through wall fittings are among the many other tank supplies that experienced beverage producers use.

Choosing the Best Tank Products 

  Although there are many brands, types and styles of tank supplies and accessories to choose from, not all of them are necessarily right for your beverage company. This is why it’s a good idea to get to know industry leaders who make these types of products so you learn about what will best suit your needs.

  With regard to insulating beverage tanks, Thompson of Flextank USA said that the best strategy is “either a temperature-controlled room using our FlexChill system or using standard insulation materials common in hot water tanks.”

Thompson’s advice to breweries and distilleries is a reminder that starting with Flextank for fermentation of grains and sugars can significantly lower start-up or expansion costs.

  “These tanks come in variable permeation rates so they can serve a double-duty and can age spirits, beer and cider without the cost of barrels,” Thompson said. “If an oak profile is desired, inexpensive oak staves are available in a variety of toasts and species that can complement the end product.”

  When shopping for tank supplies for your brewery or distillery, Clauer of ATAGO U.S.A. says that the most important things to look for in a tank meter are the specification of the measurement range, temperature compensation capabilities and after-care services.

  “ATAGO offers in-house service in the U.S., and we offer loaner units while we have customers’ instruments,” Clauer said. “With NIST certification, it offers information security standards and guidelines to ensure that the instrument is working accordingly.”

  Clauer also told Beverage Master Magazine that when searching for pieces of craft beverage equipment, such as tank meters, it is important to have a comprehensive overview of what’s needed and what options are available.

  “Purchasing an instrument is one part, but also knowing the spare parts and how accessible it is to these parts are important, as well as any technical service turnarounds,” Clauer said. “Having a manufacturer that can offer customer service that walks with you every step of the journey of craft beverage manufacturing is important. ATAGO is dedicated to meet our customers’ need with a motto of ‘You ask, we create.’ We offer a portable CO2 meter, refractometer, pH meter, and conductivity meter, as well as the inline refractometer.”

Finishing and Aging Options Evolve with Booming Secondary Barrel Market

Cyndi

By: Gerald Dlubala

barrels outside a facility

Those barrels hanging out in the distilleries, whether new, used or refurbished, are just getting started. Oak barrels have a full and varied life, complete with occasional travel between distilleries, breweries, wineries and back again, sometimes internationally.

  Just within the Kentucky commonwealth, there is an inventory of over eight million barrels of Bourbon and other spirits in various stages of the aging process. It’s the highest inventory in 40 years and represents almost a two-barrel per person ratio. That’s a lot of barrels coming onto the market, which coincides with a booming secondary barrel market.

Impacting Flavors By Following The Seasons

  One company helping those previously used barrels live their best life is Moe’s Barrels, with locations in Galt, Lodi and Fairfield, California. COO Dean “Deano” Wilson is a winemaker and self-proclaimed foodie, so he found it natural to follow his passion by selling previously used wine and whiskey barrels for secondary, flavor impacting purposes.

  “We source our barrels from both the big and small producers,” said Wilson. “The boutique producers are our preferred source for quality used barrels simply because they tend to take care of them a little better. We buy our barrels in lots, with 99% of them coming in already cleaned and sanitized. But we’ll look at, inspect and grade them, giving them a wine or beer grade. If they don’t qualify for that, we can use them as furniture or décor grade. A trend that has grown recently is to sell the parts of used barrels to the artistic community, selling the individual staves, barrelheads or barrel rings for creative endeavors.”

  Wilson told Beverage Master Magazine that his formula for success is to try and follow the season for selling a certain type of barrels. 

  “We get a lot of first and second use barrels at harvest time, which is very good for cross-utilization. White wine barrels are excellent for reuse with wine, Belgian style beers, Cognacs and more. The barrels we get immediately following the crush are great matches for repeated wine and bourbon use.”

  Wilson gets his used barrels delivered with blue painter’s tape over the bunghole. The tape covers the hole for sanitary reasons but still allows the barrel to breathe. If they sit around too long with the bung in, there’s a chance for mold growth. If the barrels are left with the openings uncovered, they could dry out and start to split. Moe’s does the rest, performing sanitation, rehydration, steam cleaning and hot water rinsing.

  “Communication is key for customers looking to purchase used barrels,” said Wilson. “The buyer needs to be comfortable in the relationship with the supplier. First and foremost, look for quality, but be comfortable enough to ask for what you need. Know what flavor profiles you’re looking to build. Use your nose and trust your smell when inspecting the barrels that you are buying. Some staining and minimal hairline cracks are fine, but larger, deeper cracks around the bunghole can be a sign of a problem, and it’s always best to stay away from any hardened purple stains. Check for holes or damage that could be related to borer beetles. We invite all buyers into our warehouse, where you can completely inspect the barrels you’re looking to purchase. Inspect them from head to head, inside and outside, noting the year on the cooperage. Know the barrel’s origin, exactly what it was used for and how many times it’s been used. A quality supplier will know and willingly share this information about the barrels they’re selling. Cleanliness and smell are your two biggest assets when looking at used barrels, so always follow your nose.”

  Moe’s Barrels keeps all of its inventory inside a warehouse and available for buyer inspection.

  “We want to recycle these barrels and give them another life in the business, whether it’s for additional distilling and brewing, for use as furniture and décor or ultimately selling the parts to the artistic community. It’s a way towards sustainability.”

Kentucky Bourbon Barrel: The Name Says It All

  What better place to source local Bourbon and whiskey barrels than in Kentucky, the birthplace of Bourbon and home to the renowned Kentucky Bourbon Trail. Noah Steingracher is the man to talk to for North American and international craft sales at Kentucky Bourbon Barrel, a full service used barrel cooperage, offering used Bourbon and exotic spirit barrels.

  Being right in the heart of the Bourbon Trail in Louisville, Kentucky, Kentucky Bourbon Barrel primarily sells Bourbon barrels sourced locally from all of the familiar names. When Steingracher joined the company, he brought his international sourcing experience with him, so exotic and international barrels are now in play as well. He has sourced used barrels from spirits distributors, breweries, meaderies and wineries for use in finishing and aging a potential customer’s product.

  “We do it all,” said Steingracher. “We sell the used barrels from barrel to stave, depending on every customer’s unique needs. We have contracts with reputable and well-known distilleries to empty and ship their used barrels directly to us. We inspect them using our stringent guidelines for acceptable and unacceptable issues, including the size of any distinguishable cracks. If needed, our experienced team of coopers repair the barrels and make them fit to fill. We fill the used barrel market for customers that may not have the time, expertise or source to fill it on their own, and our experience and reputation are such that we have customers worldwide. I’ve shipped to islands that I’ve had to find on Google Maps. I’ve delivered barrels to the base of the Himalayas. There’s nowhere we won’t deliver.”

  Steingracher told Beverage Master Magazine that the used barrel market is affected by the same seasonal changes that affect all brewers and distillers, as well as how the barrel will be used.

  “A used barrel can function as either a vessel or an ingredient,” said Steingracher. “As a vessel, used barrels are just the holder for the product. For example, if a brewer wants to offer chocolate, porter or coffee stout, a used bourbon barrel fits the need and will provide the expected stone fruit and vanilla notes. But if you want to put out the best coffee stout, you should use a rye barrel so that the unique flavor from the barrel imparts a distinguishable, peppery infused difference. The right barrel will be a noticeable and valued ingredient in your formula.”

  Steingracher noted that brewers and distillers sometimes become too easily attached to the brand stamped on the barrel rather than going with barrels that fit their actual needs, if for no other reason than to associate their brand with that of a particular distillery. 

  “A mindset of only looking towards a brand name rather than filling your flavor profile defeats the purpose of striving for reliability and availability of your product offerings. Craft distillers and brewers can always run into a situation of not being able to find that particular distiller’s used barrel for the next batch. Frankly, they usually don’t even have the marketing rights to use that particular distiller’s name in their marketing. Jim Beam can release up to ten thousand barrels a week, with Buffalo Trace releasing around six thousand a month, and then others like Pappy are obviously extremely limited.”

  “Relationships matter when discussing that reliability and availability,” said Steingracher. “You need to know the type, origin, and age of the barrel you’re getting. With all the variants and combination spirits being distilled these days, what specific type of Bourbon was the barrel last used for? Was a char put on it? What level? Was it toasted? Repaired? How many years has it been used? Barrels can last a hundred years or more if used and maintained properly. The oldest is probably in Scotland, but I’ve personally seen some from aged before World War II. We do buy some back from the distillers that we know care for them the right way, and having access to our cooperage allows us to be able to make the repairs necessary to keep them in circulation. You can certainly come through and check on barrels yourself, but with our regular buyers, they know that the barrels we send them are fit to fill.”

  The flavor and use options for used barrels are indefinite. With many craft distillers and brewers now openly sharing their barrels between multiple brewing cycles, with proper use and care, barrels can last indefinitely. It’s what you can do with them after extensive uses and fillings that become limited.

  The Barrel Mill’s Infusion Spiral Technology Offers More Flavor Options While Decreasing Aging Time

  Options for those barrels, whether new or extensively used, have gotten much greater due to Infusion Spiral technology from The Barrel Mill, a central Minnesota-based cooperage that specializes in premium new oak barrels.

  Len Napalitano is an infusion spiral expert with The Barrel Mill and told Beverage Master Magazine that their infusion spirals are perfect for creating unique flavor profiles and helping distillers get their product to market faster.

  “Sometimes, you won’t find the right barrels for the flavor profile that you want to build for your customers,” said Napalitano. “With each fill, a wooden barrel loses part of its flavor offering and balance, and after three fills, barrels can be neutral regarding any noticeable flavor profile. These barrels are still obviously good for use, and now they can benefit from infusion spirals to regain that lost flavor profile.

You can achieve new oak flavor without the new oak barrel, which can be in short supply at times. Even when used with a new oak barrel, infusion spirals help get your product to market quicker. Our spirals are cut from premium oak, maximizing end-grain exposure for full extraction in weeks instead of months, saving the distiller money in labor, cost and time. The spirals are formed from barrel stave wood, cut through, then put into a convection oven to get their desired toast or char by way of our proprietary formula.”

  Jeremy Wochnick, Sales Professional for The Barrel Mill, said “The spirals range from a light toast to a #3 char depending what the distillers want, and are available in not only the standard, premium oak, but also in French oak and more exotic species like sugar maple, cypress, cedar and more for experimental and unique small-batch flavor profiles. Barrel quality results are obtained using any type of barrel, carboy or stainless tank. The spirals have proven to be successful in spirits, beers and wines as well as hard ciders and nonalcoholic drinks like ginger ale and regular ciders. Infusion spirals can be used to add a flavor profile to anything. We also have packs with blend options featuring different toast levels. The spirals can be used once, and are inserted into your barrel through the bunghole by way of netting or some sort of daisy chain for making retrieval easy.”

  And those infusion spirals, after being retrieved from their time in the barrel? Well, it turns out that they’re a pretty good addition to your outdoor barbecue.

Starting a New Craft Distillery: Part 3

Cyndi

By: Donald Snyder

Man in front of distillery - copper
Man in front of distillery – copper

  Consumers are thirsty and they want something new. Increased demand for all things local and unique have helped pave the way for a surge of craft distilleries across the country. For those interested in starting a craft distillery today, there is a wealth of resources available to help navigate the unknown. Many toes have been stubbed by those who have been through the startup gauntlet and came out successful on the other side, lighting the path that new distillers can follow. Finally, let’s look at some of the proven, key attributes of a successful craft distillery.

Find Your Niche, Strengths

  Every craft distillery is different. That is what makes this industry so exciting. Every distillery starts with different goals, aspirations, skill sets, strategic strengths, and weaknesses. What is your story? What makes you different than the other 900 craft distilleries? If your sales representatives are in front of a new account, how will you get and keep their attention after they leave? Are you the first in your area? Is there something special about your grains or recipes? What does your background and strengths give you as a competitive advantage? Whether you have a business, marketing, technical, accounting, tasting, bartending, packaging, or engineering background, identify and capitalize on your team’s unique skillset to make a lasting mark in the industry.

Understand Your State

  Not all states are craft distillery friendly. Some states permit craft distilleries a great deal more flexibility than others. Colorado, as example, permits self-distribution and sales direct to retailers or bars, bottle sales direct to consumers, and sales by the drink out of the distillery tasting room. Washington State has similar distillery-friendly legislation. For these reasons, there are more craft distilleries in these states than any other. States, including some control states, can have very restricting laws making turning a profit very hard. Successful distilleries have come from restrictive states but their struggle is uphill. If you have flexibility in deciding where to open a new craft distillery, research the laws and find a state and a region that is distillery friendly.

 Foot Traffic is King

  The most successful craft distilleries leverage their location. Ole Smoky Distillery in Gatlinburg, TN handles thousands of thirsty tourists each week, all lining up for free tastings of their flavored moonshines. Port Chilkoot Distillery in Haines, Alaska has cruise ships dock 500 feet from their distillery that unload 2,000 thirsty passengers right into their backyard. Hotel Tango Distillery is turning into the hangout bar for locals in downtown Indianapolis, Indiana. Dancing Pines Distillery in Loveland, Colorado is in the middle of a Denver suburb and has gained a significant following. Is there a successful brewery or winery near you that draws a large crowd? A new craft distillery in the area can offer exciting opportunities for co-branding like bourbon barrel aged beer or a wine barrel finished rum. Urban distilleries can require expensive real estate but the opportunities for distribution and loyal foot traffic can lead to big returns.

Quality is the Only Option

  First and foremost a successful craft distillery must have a high quality, great tasting product. If a consumer is going to spend $35-$70 per bottle on a local craft spirit, it better taste good. If the spirit does not meet expectations, the risk is a bad mark on the entire craft industry. Take your time on your formulation. Get feedback from professional tasters, bartenders, distributors, and consumers before you release the product. For example, finding the right combination of gin botanicals does not happen on the first batch. For aged spirits, don’t rush bottling your product if the spirit is not ready. Time, experimentation, research, blood, sweat and tears go into a successful brand and it does not happen overnight. The even harder challenge is making a high quality product in a process that is scalable to meet increasing demand.

Do the Math on Still Size

  The most common question I get asked when consulting on a startup is “How big of a still should I buy?” My answer is, “How much money do you NEED to make?”

Here is a simple example:

Distilling a batch of spirits from grain on a 60 gallon pot still will make you about four 12pk cases a day (about 7-9 Proof gallons), depending on the mash bill. If these bottles retail for $40 per bottle, you can probably sell those bottles to a distributor for $20/bottle. That is a total possible revenue of $960/day.

Assuming a healthy 40% profit margin after Cost of Goods Sold for raw materials, you can net $384/day.

Assuming you distill Monday to Friday for 250 days per year, can $96,000 per year after material costs cover overhead, rent, other expenses, and payroll?

Assuming reasonably similar labor inputs and profit margins on materials, a 600 gallon pot still will produce 10x the spirits in the same number of working days.

At that production level, a distillery can both sell unaged products and lay down spirits for aging. Estimate your revenue needs to cover your overhead and back into how many cases you need sell. Reasonability account for year over year growth and calculate how big your still needs to be to keep up with demand.

Source or Not, but be Transparent

  Large distilleries know they can make vodka from scratch for $15-$35 per proof gallon. They also know they can buy beverage grade Grain Neutral Spirits (GNS) that can be used for vodka, gin, liqueurs, or “moonshine” for $1.50-$4.50 per proof gallon. Instead of aging spirits for years, if available and cost effective, sourcing aged spirits from established distilleries can allow start up craft brands to add aged whiskey to their portfolio immediately. Without debating the pros and cons of sourcing spirits, it is important to follow all labeling guidelines and regulations. If you take pride in making it from scratch, let the world know. If you don’t distill the spirits at your distillery, do not imply as such on the label.

  Sales and Marketing

  Once you’ve distilled or blended an award winning craft spirit, you have to get the consumers’ attention. The most successful craft distilleries with growing market share know that marketing dollars are key. Tasting events, radio promotions, print advertisements, and social media blasts are not only expensive, but take up your time.

Distributors can be great partners to help open new markets but the ultimate responsibility is on you to provide boots on the ground support for your brand. Convincing brand-loyal consumers to try your product is hard and expensive. Sharing the cost of promotions, samples, and incentives with your distributor is common, especially for new brands, but can take a big piece out of your margins. A rough estimate for a marketing spend budget is 10% or more of your annual revenue.

  As a new generation of craft distilleries open, standing on the shoulders of those who opened before them, they have an incredible opportunity to be a part of rapidly growing industry. The path has been lit by history’s pitfalls trying not to repeat themselves.

The time is right to start a new craft distillery while learning from the most successful in the industry. No matter what your background, find your strengths and create your story. Find a location that is both craft-friendly and draws visitors. Make smart business decisions about equipment and marketing. But most of all, embrace your responsibility to ensure your product tastes good and be a positive reflection of the craft community.

Contact Donald Snyder at Donald@TimeAndTasks.com

Starting a New Craft Distillery: Part 2

Cyndi

By: Donald Snyder

3 men in front of distillery

There has never been a better time to start a craft distillery. As previously explored, new distillers can stand on the shoulders of established craft distillers who have paved the trail over the last five years. There is an abundance of resources available including online forums, distillers’ conferences, craft-focused trade shows, local distiller guilds, experienced consultants, and a Tax and Trade Bureau (TTB) that has never been more approachable.

  However, this is by no means an easy and well-lit path. It can be a very expensive and frustrating adventure. What can we learn from others who have successfully accomplished the startup gauntlet? Hopefully the history of toe stubbing and blindly stumbling through starting a new craft distillery doesn’t need to repeat itself. Here are some of the most common pitfalls of starting a new distillery:

1.   No Business Model or Minimal Operations Cash Reserve

  This is the most common issue I have seen. Distillers should ask themselves some fundamental questions like: What are your revenue goals? How many cases do you need to sell to make those goals? What are your Costs of Good Sold (COGS) for the raw materials needed to make those cases? What are your fixed expenses like rent, full time labor, and loan interest? How much capital investment do you need to start up? How much cash do you need in reserve to run the business until the distillery starts shipping orders? An easy to understand business model is invaluable to setting sales and production goals, getting a loan, or enticing investors.

2.  No Chilling System

  Distillers will spend lots of time and money to add heat, steam, and energy to cook their mash and to run their still but completely overlook the equipment needed to remove that same heat from the system. Crash cooling a hot grain mash with chilled water can help to minimize bacterial growth. Having an abundant supply of cold water keeps your chiller running efficiently. Cold water can also be used to cool your fermenters to help avoid overheating and stalling fermentation.

3.  No Thought to Waste Water

  I have seen many craft distilleries rely on cheap, abundant municipal city water to cool their condenser but run that water straight down the drain. Many distillers waste thousands of gallons of water daily. Even if waste water is practically free to dump down the sewer, that water could be re-used and recycled. Try using the hot, clean water from your condenser as the water for your grain mashing. Investing in a cheap poly tank to hold some of the water as part of a recycling system can save thousands of gallons of water every day.

4.   Not Understanding TTB Compliance and Reporting Regulations

  This issue appears to be systemic with new craft distillers. Passing the DSP application process is only one of many hurdles to running a federally compliant distillery. Meticulous records must be kept and Operations Reports must be filed monthly. Excise taxes must be calculated correctly and paid on time. It is not a requirement to memorize the CFR chapter and verse, but a deep understanding of the regulations is a must to avoid penalties, interest, or even being shut down. Like other resources, there are systems available to help craft distillers manage their TTB reporting, operations tracking, and excise tax liabilities to minimize the learning curve and headaches.

5.  Not Involving Local Regulators

  A local craft distillery is not something that most county or city regulators have ever had to license. If you are the first craft distillery in your area, the odds are your local zoning, health, environmental, and fire regulators will have to create new codes to accommodate your operations. Getting the officials involved early on in your planning and development is key. After completing all your building renovations is an unfortunate time to discover the fire marshal requires installing an unbudgeted $20,000 sprinkler system.

6.  Difficult Layout, Too Small of a Space

  Distillery equipment is big. Vodka columns can be 20+ feet tall. A 600 gallon pot still kettle can be 8 feet wide. Fermenters, pallets of glass, racks, grain sacks, bottling equipment, finished goods, mash cookers, storage totes… they all take up space. Can you access and move everything with a forklift? Are your doorways big enough to move equipment and materials? Do you have a dock door for truck loading? Don’t underestimate the space needed to operate an efficient distillery.

7.  The DJ Dilemma

  While sitting in a dark studio it is very easy for a radio disk jockey to play the music he wants to hear, even though it may not be the music his audience enjoys. Just because a distiller wants to make something, doesn’t mean it will sell. I know a distiller who adamantly wants to make brandy even though the market for brandy in his area is next to nothing. It is important to be passionate about what you make but don’t let that blind you from making a solid business decision. Find the line between running a profitable business and having a hobby.

8.  Making Whiskey with No Available Barrels

  Whiskey is hot right now. Brown spirits like bourbon are experiencing double digit growth with record high shelf prices and consumer demand. But there is a serious problem for new craft distillers hoping to jump on the whiskey bandwagon. There are no new oak barrels available. In order to make bourbon, you need a consistent supply of new, charred, white oak barrels. Although cooperage capacity is slowly opening back up, the waiting list for barrels is anywhere from six months to over a year. If you want to open a craft distillery today, white spirits like gin, vodka, rum, non-grape brandies, corn whiskey, or flavored liqueurs may be your only options to make for a while.

  A common lesson I hear amongst the established craft distillers who survived starting up is, “I didn’t know what I didn’t know.” While there is no way to predict every issue while starting up any new business, these are some of the common obstacles that future distillers can avoid. We are in an exciting period of growth for the craft distilling industry as more and more consumers are seeking something new and different. The first distillers muddled through complete darkness and came out successfully on the other side. We may all stub our toes while wading through the unknowns of beginning a new distillery but learning a few of these cautionary tales will help light your path.

Contact Donald Snyder at Donald@TimeAndTasks.com.