Category: Finance

The Financial Impact of a New Administration on the Beverage Industry

Cyndi
the dollar bill with a dropping dow jones industrial average chart

By: Raj Tulshan, founder of Loanmantra.com

We’re a few months into the new year and the one constant we can count on is change, especially when a new administration takes America’s helm. So, what does this mean for the beverage industry, especially for business owners? And is the new administration having a positive financial impact on the beverage Industry?

  The last Trump administration brought a shift of policies and once again we see lots of moving parts. The biggest focus the Trump Campaign impressed upon the public was putting America first. This means incentivizing expansion initiatives inside the United States. This should be good news for growth plans inside the U.S. But for those with international suppliers, distribution or expansion plans, the road could be trickier.

  Here are some considerations on how the new administration could have a financial impact on beverage businesses:

Inflation

  One of the top concerns prior to the election was inflation and this hasn’t changed. A recent study by Pew reports that 43% of Americans say the affordability of food and consumer goods will get worse rather than better in 2025, 37% believe prices will improve, while 19% say prices will stay about the same.

  Our prediction on interest rates? They have already dipped slightly, but we anticipate that they will continue to drop in the future. As rates go down, value declines and the cost of obtaining capital is cheaper and easier to acquire. When this happens, it is a great time to buy real estate, spruce up, expand, upgrade equipment, buy additional trucks and secure business for plans.

Rising Labor Costs

  For many food and beverage businesses, one of the costliest balance sheet items is labor and employee-related costs: hiring, training, and health care benefits for employees. The cost of health care is projected to rise more in 2025 than it has in a decade, prompting employers to reevaluate partnerships and look for alternative strategies.

  At the same time, the Department of Labor (DOL) under Biden/Harris wrote the Fair Labor Standards Act (FLSA) expanding overtime coverage to millions of Americans. This Act, which has been challenged several times, is currently being blocked by a Texas Federal Court as of Nov. 15, 2024.

  I predict that the FLSA will be overturned, and individual states will regulate and enforce employment laws as they are already doing. Sweeping changes to the private business sector don’t typically work. They are too hard to define, implement, and regulate. Almost half of the states (23) have minimum wage increases in 2025 and six states: Alaska, California, Colorado, Maine, New York, and Washington states are already raising overtime pay thresholds in 2025.

Tariffs

  On March 4 President Trump imposed significant tariffs on imports from Canada, Mexico and China, marking a pivotal escalation in global trade tensions. These measures include a 25% tariff on Canadian and Mexican goods and an increase from 10% to 20% on Chinese imports. The administration invoked the International Emergency Economic Powers Act (IEEPA), citing the ongoing fentanyl crisis and illegal immigration as national emergencies necessitating such economic actions.

  For small businesses across the U.S., these tariffs could be particularly damaging. Many rely on affordable imported raw materials and goods to maintain competitive pricing. With increased costs, small businesses may be forced to pass these expenses onto consumers, reduce their workforce, or even shut down operations. Industries such as retail, manufacturing, and agriculture are especially vulnerable. Unlike large corporations with diversified supply chains, small businesses often lack the resources to absorb these additional costs, making it harder for them to compete in both domestic and international markets.

  For the beverage industry, expert reviews are mixed. According to a recent global report, the U.S. beer market may steal market share from beer imports because most brands are domestically produced. In contrast, additional tariffs are expected to be imposed on steel and aluminum which both the food and beverage industry relies on for production and packaging leading to increased costs. In addition, tariffs levied against U.S. imports are expected in retaliation.

Tax Changes

  The 2017 Tax Cuts and Jobs Act (TCJA), enacted during the last Trump administration, lowered income taxes and gave small business a 20% tax deduction that were set to expire in 2025. President Trump is currently calling for an extension of this act through 2034 so stay tuned.

State of Currencies

  The BRICS countries, Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia and the United Arab Emirates nations, have joined together to create a common currency as an alternative to the U.S. Dollar. So, does this mean that the U.S. Dollar is dead? According to the Atlantic Council’s Geoeconomics Center the U.S. dollar remains the world’s primary reserve currency dominating foreign reserve holdings, trade invoicing, and global transactions.

Cryptocurrency

  When it comes to crypto, we look at Trump’s cabinet for insight. Take Small Business Administration Kelly Loeffler, a female entrepreneur and administrator of a crypto company, and Elon Musk, supporter of Dogecoin. Both are likely not huge proponents of government oversight and stiff regulations. This could translate into an explosion of crypto currency opportunities, while it has even been suggested that a form of an American digital dollar might be coming soon.

  Although the early adoption of crypto occurred via alternative markets, research suggests that awareness and ownership rates have increased to a record 40% of Americans, of which 29% are women at the start of 2024. And over half hope to obtain more cryptocurrency in the future.

Federal Budget Cuts

  As the leader of the new Department of Government Efficiency (DOGE), Elon Musk aims to cut $2 Trillion out of government spending, leaving no stone unturned. The main DOGE website at doge.gov posts receipts and updates while doge-tracker.com features a live savings tracker that is updated in real-time which reports savings $105 Billion so far.

  A recent You/Gov CBS Poll found that 87% of Americans think federal agencies spending is wasteful. And while 54% of Americans think that Musk should have influence over spending and operations at U.S. government agencies, just over half (52%) expressed discomfort with DOGE’s access to data and authority to make cuts in the federal workforce.

  We are just starting to see how drastic federal workforce cuts could impact the economy with a downturn in the stock market. According to a recent Forbes article, agencies that oversee the beer industry could see a negative financial impact if their funding is cut. Defunding the Alcohol and Tobacco Tax and Trade Bureau, for example, which oversees the U.S. beer industry and the USDA Agriculture Research Service, could stifle growth and innovation, making it harder to obtain permits, approvals on new ingredients, requirements for labeling and slow brewing operations.

  So, where does that leave the Beverage Business in terms of financial impact? The United States still enjoys one of the most stable economies in the world. Regardless of who is in political offices, if we keep calm and carry on while staying informed about the policy shifts that might affect inflation, we’ll be okay. One thing is certain: we’re in for an interesting ride!

  Raj Tulshan is the founder and managing member of Loan Mantra, a one-stop FinTech business portal that democratizes the loan process by providing corporate sized services and access to entrepreneurs, small and medium sized businesses. Connect with Raj and Team Loan Mantra at 855-700-2583 (BLUE) or info@loanmantra.com.

Hiring the Right Distillery Consultant

Cyndi
Kindred Spirits Consulting: Stephen Tomori
Kindred Spirits Consulting: Stephen Tomori

By: Gerald Dlubala

Distillery consultants aim to help their clients make smarter decisions and save money while assisting them to get their distillery operational. But how do you find the correct distillery consultant for your needs?

  Referrals and research are highly recommended but may not tell the whole story. Hiring a distillery consultant means bringing in someone who will sometimes become a business partner for up to three years. So, in addition to having the experience and history to help with your distillery, it is essential to hire a consultant who you are comfortable working with on a personality level. The following are some helpful tips from experienced distillery consultants on hiring the correct consultant and turning your distilling dream into reality.

Kindred Spirits Consulting: Stephen Tomori (Lead Photo)

  Kindred Spirits Consulting works with distilleries of all sizes, from nano-distilleries with 50-gallon stills to large, full-scale production facilities with continuous or multi-large batch capabilities. Owner and lead consultant Stephen Tomori got his start as a mechanical engineer, telling Beverage Master Magazine that he has always been intrigued by how and why things worked and how they could work better.

  Years of fitting large mechanical systems into residential and commercial buildings, including ducting and piping, made distillery consulting a natural transition. Tomori’s natural curiosity, distilling experience and drive to improve things helped him win over 30 awards in his first distillery build with spirits he developed and personally distilled. He has designed over 40 distilleries, with more coming nationally and internationally. As a master distiller, Tomori’s unique skill base has led him to help his clients win 108 awards, including golds, double golds, and platinum.

  “No project is too small or too large,” said Tomori. “We’ve done a good job getting our clients recognition, and that happens because we help them put out the best product possible.”

  Tomori encourages potential clients to contact a consultant as early in the process as possible because although starting any new business is an expensive endeavor, doing things yourself and spending upfront money unnecessarily within a distillery can be disastrous to the prosperity of the business.

A Consultant That Fills Your Needs

  “We understand that each distillery project is different,” said Tomori. “Each distillery has a different location, budget and goals, so whatever the client’s needs are, our consultation is adjusted to match those needs. If you need us every step of the way, we can meet multiple times a week and be on call to get you from the initial idea to the finished product. If you want to do some things on your own but want assurances that you’re taking the right steps, we can set up those communications as needed.”

  Kindred Spirits Consulting works on an hourly or retainer basis. There is a minimum point of engagement of 15 hours and a 30 percent rate reduction over other flat-rate project prices. Other services are priced on a case-by-case basis.

  “It wouldn’t be fair to charge a small distillery the same price for a layout in a building five times its size, so each design, product development trial or hands-on training trip is customized to the client’s specific needs,” said Tomori. “Having us on retainer is a big advantage because typically when something goes wrong or needs attention in a distillery, the problems, troubleshooting and decisions can’t wait. You need someone to pick up the phone and be there for help right now. Sometimes, that’s through a phone or Zoom call, while other things regarding installation demand in-person assistance. That’s all decided on a case-by-case basis.”

  “Since I’m a mechanical engineer, we can generate an AutoCAD drawing for the layout of your distillery accurate to within an inch, showing the location of all equipment, things like fermenters, tanks and ancillary equipment, including water treatment and empty bottles,” he continued. “Everything gets a place to keep your distillery running efficiently and safely while prioritizing aesthetics and impressing your visitors.”

Find Your Consultant

  Tomori urges those seeking help to question potential consultants to determine their qualifications and get a feel for their personality. Qualified consultants may not know how to do everything, but they should be able to point you to competent and vetted partners.

  Ask about their overall background and experience and delve into specifics. What is their design mentality? Do they cater to specific needs and goals or offer flat, cookie-cutter options? Do they answer questions confidently and knowledgeably about specifics like proofing, fermentation, and recipe development? Can they take your goals and the spirits you want to produce and recommend the right-sized equipment to match those specifics? Has their design and recipe development experience produced award-winning spirits? Quality consultants will use your questions, budget, and goals to formulate a unique distillery plan for you.

  As an engineer and fabricator, Tomori always ensures his equipment recommendations are constructed and assembled using the correct copper and quality stainless steel thickness. The fit and finish have to be perfect to get his recommendation.

  “A lot of our work involves distillery audits, expansions and working with existing equipment,” said Tomori. “Regarding audits, we can perform a start-to-finish assessment of your process. Unfortunately, just because you’ve been open for a long time doesn’t mean you’re doing things the best way. We can almost always pick up a percentage point or two within a specific process that can help increase yield. By doing that in several processes, we’ve increased a distillery’s yield by five, 10 and even 25 percent in some cases. Over the course of a year, that’s saving our clients a lot of money. Likewise, we get upgrades, expansions or new spirit lines operational to meet the client’s goals.”

Working with Kindred Spirits Consulting

  Tomori said it starts with a call or contact form submission that identifies the client, their background, goals versus budget and three-to-five-year projections. An initial call also determines if both parties are a good fit for each other.

  “Sometimes we’re not,” said Tomori. “We want you to succeed, so we must be able to communicate comfortably. If we decide to work together, we’ll determine the level of involvement and services you expect and whether it’ll be on an hourly basis, a retainer or just a one-off trip or trial. Clients’ needs differ wildly, so flexibility in handling things is good.”

  “Suppose you’re coming from a non-distillery-related industry,” he said. “In that case, you’ll need a distillery plan to submit to your jurisdiction authority and the TTB, which has its own requirements. We can also help find suppliers, such as bottles, caps, closures, sourced spirits, or raw materials. We collaborate with local architects and engineers, ensure you’re okay with local authorities and help with equipment and setup. Once approved, we provide onsite, hands-on training for safely operating your equipment to produce your spirits. We can help with test runs and more, down to the recommendation of quality marketing and branding companies to help your product stand out.”

  To learn more about Kindred Spirits Consulting visit their website: www.KindredSpiritsCSG.com

Distillery Now Consulting: Kris Bohm (Photo on Page 39)

Distillery Now Consulting photo of Kris Bohm
Distillery Now Consulting: Kris Bohm

  Distillery Now Consulting owner Kris Bohm is an award-winning distiller who has built and managed multiple distilleries across the world. Through his consulting services, he helps future distillers clear hurdles quicker to get their distillery operational in less time.

  “Hiring a consultant can be expensive,” said Bohm. “So, I first like to ask potential clients if they feel they need a consultant. I can always make a case for hiring a consultant, but are you, as the owner, able to recognize the value a consultant brings to the table? Are you comfortable listening to and implementing a consultant’s suggestions and recommendations? You have to be real about your confidence level and expertise in the industry and then recognize that there are things you don’t know. Of course, you want to ensure you’re doing things right and as efficiently as possible, but you can have the best consultant in the world, and if you’re not willing to implement at least some of their suggestions, you’re throwing good money at bad. That may sound harsh, but you have to be willing to be guided, and that can be hard for someone with an entrepreneurial mindset.”

The Unintentional Distillery Consultant

  Bohm started consulting full-time by chance after overseeing the construction of a distillery in Austin, Texas.

  “We were installing a high volume, high-throughput continuous column still, which was relatively new technology in the craft spirits world,” said Bohm. “After that project, people came to me for my expertise and opinion on these types of stills. For about a year and a half, I voluntarily helped a handful of craft distilleries with continuous column installations. I approached it as being an open source and helping other distillers. My partner gave me a kick in the pants when she explained that if I was going to be away so much doing what I love, I might at least consider charging for my time. I did that, and my consulting evolved to the point where I was making more consulting than my job as vice president of another Texas distillery. I had to make a choice, so consulting was the way to go for me.”

  The bulk of Bohm’s expertise is within the first five years of the lifecycle of a distillery, meaning design, operation, and optimization. He helps design and outfit a facility with the proper equipment to get them to the point of having a well-running distillery that meets their expectations. Bohm also works in expansions, having been involved in adding continuous column stills or larger pot stills to distilleries that needed to expand their operation or production.

  “I also broker the sale of businesses and help sell, remove or relocate used equipment,” said Bohm. “I’ll also perform business valuations for those who genuinely need to know how much their distillery or business is worth and want a fair, non-emotionally attached valuation.”

Working with Distillery Now

  Bohm prefers to be less structured than other, larger consulting companies. He builds his approach using information from his clients while ensuring that their personalities are compatible to build a trusting, prosperous relationship.

  “I need to understand my client’s budget and goals,” said Bohm. “Through an informal discussion, I’ll build a program that works for them and share how I work and what they can expect from me. I have clients I meet twice a week and others that touch base once a month to ensure things are going in the right direction. Most work, sometimes up to 80 percent, can be done remotely, keeping costs down while allowing me to work quickly and on time. I don’t want customers’ projects mired up in lost or unavailable information.”

  Bohm continued, “In most projects I am involved with, clients start with an idea, some goals, and a rough budget, and they want to see what they can achieve with that. Under those circumstances, I may work as a consultant for them for two to three years, from the idea to filling their first barrels of whiskey and bottled vodka. That’s when they typically have a running program and no longer need someone like me.”

  Bohm said that he has been able to help start some great distilleries, and no two have been the same. Each distiller has different consulting needs. While some want guidance that they are making proper choices, others want a more hand-in-hand approach to getting their distillery up and running. Bohm is typically compensated for his time on an hourly basis. However, specific tasks, such as getting a Federal Distiller’s License, have specified rates because he knows what it takes to get that completed.

Distillery Now Brings Value and Experience

  “The value I bring as a consultant over more specialized consulting firms is 10+ years of experience as a distiller and distillery manager in some great distilleries, along with overseeing the buildout of over 20 successful distilleries from idea to an operating business,” said Bohm. “I can’t say I’ve seen everything, but I’ve seen more than most. I’ve been in most distillery situations and have seen things handled the hard way, as most first-time distillers would do. To have my resources a phone call away expedites all processes and decisions. It saves a client several months and sometimes thousands of dollars in savings, and it gets their distillery open and operational sooner.”

  To work with Kris Bohm and Distillery Now Consulting, head to the website or send Bohm an email. Bohm offers a free initial consultation by phone or Zoom to see if he is the best consultant to bring the most value to your project.

  “I help people get their business operating quicker while spending less money,” said Bohm. “It’s about setting them up for success – even down to picking out the perfect distillery cat for them if they want.”

For more information about Kris visit: www.distillery-now.com

  

Can AI Boost Beverage Marketing Strategies?

Cyndi
futuristic robot with chin in hand

By: Hanifa Sekandi

In a world where technology is the gateway to success, it is unsurprising that people are looking at the new kid on the block, AI. For some, this tool is controversial. It lacks the human touch, a true statement. People value connection, something that AI cannot replicate.

  Regardless of these sentiments, it is a tool that must be understood even if you choose not to utilize it. So, what place does it have in beverage marketing? The place it holds for your beverage brand is up to you. Many marketing experts across industries have implemented AI software into their strategies to streamline processes. Some companies see it as a tool to cut costs—an excellent opportunity to allocate a budget to marketing initiatives rather than large marketing teams.

  Although this new frontier is popular right now, this will likely level out. AI cannot completely replace an experienced marketing team, nor can it brainstorm creative ideas. But it can take your ideas and organize them. It can help bring the story together and devise a plan that is easy to digest across teams. However, there are limitations.

  Before you consider using AI to market your beverage brand, it is essential to have a goal in mind. Why is this tool useful for your company? What gap is it filling? If you have been following along, we often mention the importance of understanding your audience and researching before you market your beverage.

  Once you have solidified your why and brand messaging, the next step is who. Who is your consumer? How can you reach them? How do they make their buying decisions? The market research stage is fundamental to your long-term success. It precedes determining the what and how to market to your consumer. 

AI & Market Research

Fortunately, many AI tools can help you conduct market research. With these tools, you can take a deep dive into your consumers’ behavior. AI software can analyze what actions your targeted consumer makes. It can also zero in on key demographic markers, such as age, gender, location and income. Brands can see who their competitors are and how their audience responds to their marketing initiatives—a great way for a new beverage brand to understand how they might measure up to the best. AI, if utilized correctly, can give brands a competitive edge.

  With that said, there are downsides to using AI. One downside is that your plan can be widely used if you do not provide a detailed and concise query. You ask AI questions, and AI does its best to answer them. Generic questions get basic answers. The more details, the better. Avoid obvious questions that most people would ask.

  For example, asking AI to help you by using generic market research strategies will not provide you with a customized plan exclusive to your brands. An example is asking an AI tool how to market to men who play hockey. Just asking about this demographic your competitor may be targeting will provide you with a basic strategy—a strategy that will be similar if several other brands ask the same question. AI is not the be-all and end-all. You cannot just sit back, let it do the work and then let the magic happen.

  Marketing teams who have adopted this tool understand this quite well. They know the limitations of their teams and recognize the limitations of AI tools. They know how to cut through the marketing fluff with AI. AI helps marketers zero in on a targeted audience and highlight information that would take hours to uncover through conventional market research strategies. With AI, every stone unturned will be flipped over, revealing little marketing gold nuggets. Rather than focusing on just one aspect of your demographic, you may discover that your consumer is more than just a hockey fan. Their desire for a beverage is not isolated to watching the sport.

  Discovering the complexities of your consumers will allow you to explore other ways to reach them. You do not have to spend so much time focusing on what your competitor is doing and trying to do it better. Your brand can do what has not been done yet, opening a new viewpoint of how this consumer is viewed.

Streamline Your Marketing Plan

  What can you do as a marketing team? This is the first obstacle that needs to be tackled. Becoming a successful beverage brand still requires active participation. You will have to roll up your sleeves. You cannot close your eyes and hope that a few AI tools and strategies will do the work. When you hit the ground running, know your strengths and weaknesses. From here, you can discern where AI fits in and how it enhances your marketing goals.

  Many people use AI to condense their marketing plans. A 30-page deck can be overwhelming. With the help of a good AI tool, you can break down your strategy into segments. Upload your document and select areas your team would like to focus on. You may also break your plan into segments that can be assigned to individuals on your team. AI can take a large-scale plan and turn it into actionable goals. This is where AI can shine.

  An AI-generated workflow diagram provides a useful map to follow. As business picks up, it is good to know where you are heading since the unexpected is always at play in beverage marketing. There will be times when you need to pivot or modify aspects of your marketing strategies. What is important is that you do not lose sight of where you are going.

AI Can Automate Social Campaigns

  Most brands have a love-hate relationship with social media. There are so many different platforms, and each one has different requirements. This is where AI can shine for many brands. Social media can be demanding, as it is a full-time commitment, particularly when trying to break a brand. Your team is small, and there is only so much one marketing manager can do. As of late, most social platforms have also implemented AI tools to help you with effective social media marketing. Yes, authenticity is always best. But if you are not a writing savant, a skilled video editor or cannot create a visually appealing post, there are AI offerings for this on most platforms. Smartphones are also useful for this because they offer AI tools for photo and video editing.

  For example, AI-powered content creation tools like Blaze AI save you time and make it look like you’re an expert. These tools give you a framework to work with to get you started to support current efforts. Bigger brands can afford to hire a few social media managers, whereas smaller brands may have a marketing manager who is a jack of all trades. Unfortunately, this is not beneficial in the long run. An overworked marketing manager cannot be or do all things at once and will often miss marketing opportunities.

  These AI tools can also assist with newsletters. Some people opt to use AI for blogs. This is one of those sticky areas. It is always a good idea to write your content in-house, particularly content that will live on your website. A human touch and authentic brand voice shine above all. AI tools can help you brainstorm ideas or create an editorial calendar but cannot replace a copywriter. Hire a copywriter, and this should be part of your marketing budget.

Simply put, people can tell. We are in an era of information overload. So proceed with caution when utilizing AI for content.

  Your blogs are the only place where you can tell your story, something you know more than AI. Once you have your audience’s attention on social media, where are you directing them? If it is not the local beer store, it is your website. Consistent newsletters and blogs are a must for brands that sell beverages from their websites.

  So, what’s the overall verdict of AI in beverage marketing? Err on the side of caution; do not overdo it. But give it a try and see where it takes your brand.

Pack Expo logo

Variety of needs prompt changes in packaging choices

Cyndi

By Rebecca Marquez, Director, Custom Research, PMMI

Transitions in packaging materials are not uncommon for consumer packaged goods (CPG) companies. Nearly half have transitioned materials in their operations within the last 12 months, and 35% say transitioning has increased, according to Transitioning Flexible Materials Best Practice, a report prepared by PMMI Media Group Custom Research, the proprietary research arm of PMMI, The Association for Packaging and Processing Technologies.

Transitioning decisions are driven by the need to meet sustainability goals, cut costs, enhance product quality and safety, comply with regulations, overcome supply chain issues, and meet changing consumer preferences.  

The Best Practice document, prepared in conjunction with the Flexible Packaging Association and PMMI’s OpX Leadership Network, serves as a guide to transitioning flexible films for CPG companies and their OEMs. The transitioning process requires careful planning, testing, and evaluation to determine whether the new materials are compatible with existing machines or require new machines. A flow chart defines tasks required for transitioning flexible films, and a RACI matrix shows the responsibilities of the groups that should be involved in the process, including Packaging Design and Development, Operations and Engineering, Marketing/Brand Owner, OEMs, and Materials Suppliers/Converters. Step-by-step guidance leads the transition through feasibility; design and development; pilot testing; tracks for legacy or new equipment; commissioning, qualification, verification; supply chain scale-up/commercialization; and evaluation.

A related resource, the PMMI Material Transitioning Dashboard, provides insight into what materials are being used in 44 industry categories, the top 10 materials being phased out, and what replacements will most be in demand during the next three to five years. The fully customizable tool evolved from a PMMI report prepared in collaboration with Ameripen, 2023 PACKAGING COMPASS: Evaluating Trends in U.S. Packaging Design Over the Next Decade and Implications for the Future of a Circular Packaging System and enables users to tailor the data to their industry and business.

For example, the Dashboard reveals the materials most likely to be phased out in the Food and Beverage industry during the next three to five years include polystyrene (PS); polyurethane (PU) and PS foams; polyvinyl chloride (PVC); molded pulp; rigid polyethylene (PE), low-density PE, and polypropylene; and multi-material structures, both rigid and flexible. At the same time, the most likely replacements include post-consumer-recycled (PCR) rigid and flexible formats, recycled materials, reusable packaging, and compostable structures, followed by molded pulp, solid-bleached-sulfate paperboard, bio-based substrates, and flexible and rigid PE.

The top five material phaseouts in the Life Sciences/Pharma/Healthcare sector are molded pulp, PS, PVC, PU and PS foams, and multi-material structures. Favored replacements in this category include PCR rigid and flexible packaging, and materials with recycled, compostable, or bio-based content.

CPG companies planning material transitions have a new resource to tap, the inaugural PACK EXPO Southeast (March 10–12, 2025; Georgia World Congress Center, Atlanta). With 400 exhibitors spread over 100,000 net square feet, the show will present machinery in operation and the latest materials to enhance manufacturing operations, PACK EXPO Southeast ranks as the most comprehensive show in the region offering crossover solutions for today’s biggest packaging and processing challenges for 40+ vertical markets, including Food & Beverage, Household & Automotive, Life Sciences/Pharma/Medical Devices, Cosmetics/Personal Care, Pet Food & Pet Care, and Chemical (household and industrial).

With opportunities for innovation, education, and connection, the debut event is packed with exciting features, including sustainable solutions such as mono-material design and reusable options, expert-led sessions on industry trends, and presentation of cutting-edge technologies such as automation, robots and cobots, AI, augmented reality, virtual reality, and preventative maintenance, as well as innovations for anticounterfeiting, smart packaging, e-commerce, food safety, cold-chain packaging, and life sciences operations. Attendees will be able to explore new technologies, find new packaging materials, meet key partners, observe equipment in action, and compare multiple machinery options.

The Reusable Packaging Pavilion, sponsored by the Reusable Packaging Association, will highlight how reusable transport packaging products and services can reduce waste, lower costs, and enhance supply chain efficiency. Whether optimizing operations or adopting more eco-friendly practices, this pavilion will serve as a gateway to a more sustainable supply chain, which achieves a smaller carbon footprint and supports a circular economy.

The Association Partner Pavilion connects attendees with leading associations that drive innovation and excellence in packaging and processing. This central locale offers a wealth of resources, insights, and expertise and provides access to tools and knowledge to stay ahead of industry trends.

A one-stop shop for resources to strengthen and grow the workforce, the Workforce Development Pavilion showcases the dynamic opportunities offered by PMMI U, including popular training workshops designed to enhance skills and meet industry needs. It’s also the place to observe the impressive mechatronics and packaging programs presented by leading schools. Plus, it provides an opportunity to connect with talented students eager to embark on careers in packaging and processing, making it the perfect platform for networking, talent acquisition, and building strong industry partnerships.

Educational sessions at PACK EXPO Southeast include Industry Speaks and the Innovation Stage. At Industry Speaks experts from the PACK EXPO Partner Program will share valuable insights on the latest industry trends and pressing topics. Representing diverse verticals, these thought leaders will explore key themes and offer actionable knowledge about workforce development, scale-up strategies for emerging brands, advancements in remote services and monitoring, cybersecurity, and evolving industry standards.

The Innovation Stage features free, 30-minute seminars presented each day by industry experts. Discover breakthrough technologies, explore innovative applications, and gain insights into proven strategies to enhance productivity, efficiency, and safety.

PACK EXPO Southeast also offers ample opportunities to connect, collaborate, and build relationships via events such as the Taste of Atlanta sponsored by Multi-Conveyor LLC (4:00–5:30 p.m., Monday, March 10). Open to registrants of the show. Show badge required for entry. 

Later that evening, the next generation of industry leaders will be able to network and learn more about working in the packaging and processing sectors at the Young Professionals Networking Reception at Wild Leap Atlanta (7:00–10:00 p.m., Monday, March 10). RSVP required. Must be registered for the show.

The Packaging & Processing Women’s Leadership Network also will host a reception. Sponsored by Morrison Container Handling Solutions, it will take place from 4:00–6:00 p.m. on Tuesday, March 11, and provide an opportunity to connect with influential women in the packaging and processing industry. RSVP required. Must be registered for the show.

Like all PACK EXPO shows, PACK EXPO Southeast will offer programs and activities just for students to promote careers in packaging.

Attendees have access to a host of tools and resources to help them make the most of their time at PACK EXPO Southeast. My Show Planner, a personalized collection of “must-sees,” tracks interests before, during, and after the show. In addition to providing a personalized resource planning tool and directory of exhibitors and sessions, My Show Planner offers appointment scheduling capabilities.

Personal agendas also can be created and saved in the PACK EXPO Southeast Mobile App, sponsored by ProMach. This free app streamlines show floor navigation with interactive maps, provides access to exhibitor, product, and educational session listings, and delivers show news and information about demos, giveaways, and other activities.  

To help pinpoint prospective suppliers before the show, the PACK Match Program offers PACK EXPO Southeast registrants the opportunity to schedule a free, 30-minute, virtual consultation with an unbiased industry expert. This consultation will generate a list of suppliers capable of addressing the registrant’s specific business challenge(s). Register for an appointment by Feb. 25.

Discover the future of packaging and processing at the new PACK EXPO Southeast (March 10-12, 2025; Georgia World Congress Center, Atlanta), the most comprehensive show in the region offering crossover solutions for today’s biggest manufacturing needs for 40+ vertical markets. Attendees will find the Atlanta location, a manufacturing hub of the region, convenient and easy to access for teams to attend, assess the latest technologies, learn from leading industry experts, and make valuable connections to meet current or upcoming project requirements. Registration is $30 through Feb. 14, after which the price increases to $130. For more information and to register online, visit packexposoutheast.com.

book titled business lessons with two hands holding 2 beer mugs full of beer

Top 10 Business Lessons from 2024

Cyndi

Insights to Craft a New Path Forward in 2025

By: Raj Tulshan – Founder and Managing Partner at Loanmantra

As we look back at 2024, beverage businesses reflect on the past year that tested their adaptability, resilience and creativity. Navigating economic uncertainties and leveraging new forms of technology, business owners demonstrated remarkable ingenuity in a post-Covid business world. Here’s a look at the top ten small business lessons. What we’ve learned—and real-world examples of how to put these insights into action.

1. Adaptability and Flexibility can lead to Economic Sustainability.

Small businesses in 2024 faced fluctuating interest rates and inflation. Their sound financial management and steady operations kept them afloat.

Navigating Economic Volatility: One bakery in Chicago got creative with the changes in the market. Sweet Spot Bakery adjusted its pricing model to account for rising ingredient costs. By introducing dynamic pricing based on their real-time expenses, they maintained profitability without alienating customers. Puesto, an Italian restaurant chain from La Jolla, California raised prices 8% during busy periods and reduced them 20% during slower periods. A case study shows they boosted sales by 12% while retaining their employees.

Strategic Cost Management: A small retail store in Atlanta reduced their costs by renegotiating contracts with suppliers. By switching to energy-efficient lighting they saved 15% on monthly operational expenses. Green upgrades to a business may not only offer cost savings but can help businesses qualify for tax breaks and incentives in some cases.

2. Embraced Technology like AI, Automation and Augmented Reality.

  Businesses that found a way to incorporate technology and embrace digital tools and AI flourished. They improved their efficiency, reached new audiences and gave customers a more ways to interact with products, services and brands.

Adopting AI and Automation: Many business owners turned to AI to reduce manual and repetitive tasks. AI-driven software automates bookkeeping, scheduling, customer interactions, and even some marketing jobs. For example, a small law firm in Denver implemented AI-driven document review software and cut their case preparation time by a staggering 30%.

Augmented Reality: Lush Looks Boutique in New York integrated an augmented reality (AR) feature for virtual try-ons on their Shopify store, which increased online sales by 40%. Industries including tourism, real estate and even education are using AR to help consumers visualize themselves in various settings. This is especially important as a new generation of consumers place more value on having authentic experiences and will spend money for higher levels of quality of drinks, foods and experiences.

3. Focused on Customer – Centric Approaches.

  Better understanding and catering to customer needs proved vital for growth this year. And that means establishing a two-way dialogue between beverage companies and their patrons and taking that feedback to put a plan into action. People want to feel acknowledged, taken care of and treated well.

Personalization Matters: FlexFit Studio in Los Angeles used CRM software to send personalized workout tips and promotions, boosting membership renewals by 20%.

Customer Feedback as a Guide: Green Bean Café in Portland added vegan options to their menu after analyzing online reviews and feedback from their clients. Understanding this new consumer segment brought in a 25% increase in local visits.

4. Adopted Shifting Workforce Trends.

  Retaining top talent required flexibility and a greater focus on the employee’s well-being.

Flexibility Retains Talent: Numerous small businesses juggled the balance of remote and hybrid work models, aiming to strike the right balance for their business. In one example, CreativeHive Agency in Austin retained their top performers by offering remote work options and subsidizing their employee’s coworking memberships. This resulted in a 10% productivity boost.

Employee Well-Being is Non-Negotiable: A small landscaping business in Miami introduced mental health days for their staff and even partnered with local mental health experts for their people. This initiative is estimated to have reduced turnover by 30%.

5. Boosted Online Security.

  Protecting sensitive information has become critical in a digital-first world. This is one of the business lessons that will be essential for the future.

Protecting Against Cyber Threats: Many businesses implemented multi-factor authentication and regular employee trainings to reduce cyber-attacks. These proactive approaches helped stave potential data breaches and strengthen client trust. The U .S. Chamber of Commerce has taken a more active role in educating companies on how to ensure their businesses are secure in a digital, online world.

Steps to Boost Cybersecurity: The Chamber advises taking these steps boost security. Use antivirus software and keep all software updated, enable Multi-Factor Authentication, manage Cloud Service Provider (CSP) accounts, secure, protect, and back up sensitive data, secure payment processing, control physical access, back up your data and control access to company data.

6. Made Sustainability and Community Affairs top Priorities.

  Customers increasingly value purpose-driven businesses that prioritize sustainability.

Consumers Value Purpose-Driven Brands: Younger customers put their money where their values are. Many small businesses, like EcoBrewery Co. in Asheville, stood behind their mission and values to attract new customers by introducing recyclable packaging.

Social Responsibility Focus: According to Nielseniq, Gen Z prioritizes brands that align with their ethical and social principles: environmental sustainability, social justice and corporate transparency. Supporting brands that demonstrate sustainable sourcing, eco-friendly packaging and corporate social responsibility initiatives. For this generation, buying a product is not just a transaction but a statement of their personal values and beliefs.

Investing in Sustainable Changes: Businesses turned to local grants and funding to help them create greater value. BrightTech Manufacturing in Dallas installed solar panels on their physical space, reducing energy costs by 20% and earning a sustainability award from a local business association.

7. Adapted to Capitalize on New Opportunities.

  If the past several years has taught business owners anything, it’s that being able to pivot quickly is what can enable them to thrive sometimes.

Pivoting Pays Off: Finding the white space in the market isn’t always about the product or cost. Sometimes innovation comes by way of constraint. A photographer offered virtual photo shoots. unlocking new revenue streams and client base.

Global Opportunities: A startup with large amounts of overhead sourced parts throughout the world reducing their production costs by 25%.

8. Leveraged Support Network Partners.

  Strong partnerships and mentorship provided essential support this year.

Collaboration Over Competition: In St. Louis, several small boutiques banded together for a holiday market, increasing foot traffic and boosting sales for their collective audience.

Seeking Expert Advice: SmartStart Co. in Atlanta was one of many SMEs to join their local chamber of commerce mentorship program. Through their participation, they gained insights that grew their revenue up to 15%.

9. Secured Needed Access to Capital.

  One of the top concerns for small business owners is securing capital. Access to capital is a prime barrier that keeps business owners from starting or expanding their business. This will continue to be a top concern heading into the new year. How important is access to capital for small businesses?

  A study by US Bank found that 82% of businesses fail due to cash flow mismanagement. Almost half (43%) of small businesses applied for a loan last year according to Fed Small Business.

Ready Paperwork for Steady Financing: Business owners plan ahead by gathering documents that are required for financing before funds are needed. For example, many business owners set up a free, secure account at loanmantra.com so that everything needed to secure funding is ready.

Building Relationships with Lenders: Sometimes a line of credit through a local community bank or credit union can enable a business to grow and expand.

Government Programs Are Valuable: Small Business Administration loans grow communities, particularly underserved communities, through small businesses.

10. Small Business Lessons Continue

  These lessons from 2024 highlight the resilience and creativity of small business owners. Applying strategies–from dynamic pricing to customer loyalty programs–businesses are surviving and growing. Carrying these insights forward into 2025 can help craft a roadmap to navigate the new challenges and opportunities ahead.

  Raj Tulshan is founder and managing partner at www.loanmantra.com. Reach him via Linked-in at https://www.linkedin.com/in/tulshan/.

After the Storm: The Beverage Businesses Guide to Financial Recovery and Disaster Loans

Cyndi
photo showing aftermath of disaster and debris

By: Neeraj (Raj) Tulshan – Founder of Loan Mantra

In late September, 2024, Hurricane Helene ripped through the Southeast U.S. with what President Biden called “history-making” effects. With a rising death toll and billions of dollars in damages, the impact on families and communities is devastating. With a federal major disaster declaration for counties in Florida, the Carolinas, Tennessee and parts of Georgia some financial relief was provided. Unfortunately, small businesses face significant challenges after a natural or unexpected disaster like Hurricane Helene. While the impact may vary based on location, industry and disaster level, there are a few key steps that beverage businesses can do to lessen the economic impacts of natural disaster and acquire disaster loans.

Tips for Beverage Businesses to Recover from Disaster:

Physical Damage to Property and Assets

Impact: Buildings, inventory, and equipment can be damaged or destroyed by high winds, floods, and debris associated with natural disaster. Likewise, businesses can often face delays or denials in their insurance claims, which delays cost repair or stretches the timeline for repairs.

Recovery Tip: Assess the damage quickly and file insurance claims for your small business immediately. Sometimes it can be difficult to remain levelheaded after disaster, but remember to take many photographs, keep records of the damage, and work with reputable contractors to get estimates for repairs or replacements.

Revenue Loss from Forced Closures

Impact: Forced closures during and after a disaster can result in a significant loss of revenue, especially for beverage businesses that rely on daily sales cycles like bars/pubs, brewers, distributors and service-based companies. Transportation and logistics networks may be disrupted, making it difficult for businesses to receive supplies. And in dire cases of emergency, customers may leave the area temporarily or permanently, reducing demand for services.

Recovery Tip: Apply for SBA disaster loans or local assistance programs to cover lost income and operational costs while your business is closed. Consider moving some operations online or offering limited services to keep cash flow going and to maintain your sense of the customer base during unexpected times.

Supply Chain Disruptions

Impact: Weather disaster can disrupt the transportation of goods and supplies, causing delays or shortages.

Recovery Tip: Diversify suppliers if you feel you are relying on a single source for one good or product. Establish backup agreements with alternative vendors and explore local suppliers who may have the ability to provide more in the circumstances.

Power and Utility Outages

Impact: Power outages can disrupt business operations, including online orders, point-of-sale systems, and production.

Recovery Tip: Invest in backup power solutions, such as generators, to keep critical operations running during outages. Also, cloud-based services can allow for remote access to accounts, files and programs as needed.

Workforce Disruption

Impact: Employees may be physically unable to report to work due to displacement from their homes or several transportation challenges. Most small businesses see an uptick of employee absenteeism during times of disaster.

Recovery Tip: Create an emergency communication plan to stay in touch with employees. As is possible, offer flexibility, including remote work options, or temporary paid leave to keep your workforce intact and loyal.

Decreased Consumer Spending

Impact: Your customer base may be financially impacted by the disaster, leading to reduced demand for your products or services.

Recovery Tip: Adapt your marketing strategy to target new or existing customers online. Consider offering discounts or flexible payment options for loyal customers during the recovery phase.

Increased Operating Costs for Recovery

Impact: Repairing damage, replacing equipment and restocking inventory can significantly increase operational costs after a hurricane.

Recovery Tip: Seek financial assistance, such as SBA disaster loans, FEMA grants, or state and local programs. These can help cover recovery expenses without straining your cash reserves.

Reputational Damage

Impact: If your business is unable to fulfill orders or provide services, customers may turn to competitors, damaging your brand.

Recovery Tip: Communicate with your customers about the status of your business. Be transparent about delays or issues and provide regular updates to maintain trust and customer loyalty. Remember, it’s best to be genuine when communicating about challenges. Recognize that many of your customers may be dealing with similar negative effects.

Emotional and Financial Strain

Impact: The emotional toll of dealing with the aftermath of a disaster, combined with financial uncertainty, can be overwhelming for business owners.

Recovery Tip: Beverage business owners may have invested personal savings into their business, and the destruction or disruption caused by natural disaster could be devastating for their personal finances. In any instance, beverage owners should seek support from local business networks, recovery organizations and mental health resources.

Difficulty in Accessing Aid and Resources

Impact: While disaster loans and grants are available, the application process can take time, and many businesses may face immediate cash flow problems while awaiting assistance. Likewise, it can be daunting to navigate the complex paperwork required for disaster loans, insurance claims or government aid.

Recovery Tip: Reach out to a trusted financial advisor to help you sort through complex paperwork or claims. Financial experts, such as Loan Mantra, can help you determine the best economic recovery strategies and help you find assistance. Similarly, many nonprofits or other professionals are available to help small businesses get disaster loans and aid.

What Kind of Federal Assistance or Disaster Loans are Available?

  After a natural disaster like Hurricane Helene, small businesses can access various disaster loans through the U.S. Small Business Administration (SBA). The SBA offers disaster assistance in the form of low-interest loans designed to help businesses repair or replace real estate, inventory, equipment, and other assets damaged or destroyed. Businesses of all sizes, private nonprofits, and homeowners or renters (depending on the loan type) may apply.

  Applications are typically available through the SBA website or local disaster recovery centers. Businesses will need to provide financial statements, tax returns, and other documents to prove damage and financial loss.

Here are the primary types of disaster loans available:

SBA Disaster Loans for Physical Damage

Business Physical Disaster Loan: Available to businesses of all sizes to repair or replace real estate, equipment, inventory, and other business assets damaged during a disaster.

Loan Terms: Up to $2 million with terms as long as 30 years, depending on your ability to repay. Interest rates for businesses without credit elsewhere are low (around 4%) and slightly higher for businesses with credit elsewhere.

SBA Economic Injury Disaster Loans (EIDL)

Economic Injury Disaster Loan (EIDL): This loan provides small businesses with working capital to meet necessary financial obligations that they could have met if the disaster had not occurred. It’s designed to help businesses recover from the economic impact of a disaster, such as revenue loss.

Loan Terms: Up to $2 million at interest rates around 4% or lower for businesses without credit elsewhere, with a term of up to 30 years. These loans are only for essential needs, such as payroll, rent, or operating expenses.

SBA Military Reservist Loan Program

Military Reservist Economic Injury Disaster Loan (MREIDL): For small businesses whose employees are essential to the operations of the business but are called to active duty. It helps the business meet operating costs until the employee returns.

State and Local Loan Programs:

State and Local Relief Programs: Some state and local governments offer disaster relief programs, which may include low-interest loans, grants, or temporary tax relief.

Private Loans and Grants:

Non-SBA Lenders: Some banks and credit unions may offer special disaster recovery loans for businesses, often at low or no interest. Additionally, businesses can look for grants from nonprofit organizations or industry-specific programs.

Federal Assistance through FEMA:

FEMA Grants and Assistance: While FEMA generally helps homeowners and individuals more than businesses, it can aid some small businesses, particularly agricultural enterprises or non-profits, as well as provide information on SBA disaster loans.

Next Steps:

  The worst time to get documents in order needed for financial assistance is after a disaster happens. By then, important paperwork, vital records and electronic files may be destroyed or in-accessible. Uploading these files to a safe place can ease the process and put you first in line for assistance. Companies like Loan Mantra offer free accounts to house financial documents that are needed to apply for grants and loans in a secure digital format.

  Hurricanes like Helene, or any other natural disaster, can hit beverage businesses hard, but with the right recovery strategies, you can minimize the damage. By securing financial assistance, communicating with employees and customers and preparing for future disasters, your beverage business can better weather the storm.

  Raj Tulshan is the founder and managing member of Loan Mantra, a one-stop FinTech business portal that democratizes the loan process by providing corporate sized services and access to entrepreneurs, small and medium sized businesses. Connect with Raj and Team Loan Mantra at 1.855. 700.BLUE (2583) or info@loanmantra.com.

Raising a Glass to Success

Cyndi

Tips & Best Practices for Craft Beer and Spirit Producers

3 men toasting with 3 full beer glasses

By: David DeLorenzo

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

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

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

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

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

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

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

Assessing, Addressing and Avoiding Risks

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

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

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

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

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

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

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

Brokers vs. Insurance Companies: Know the Difference

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

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

Prove It: The Value of the Paper Trail

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

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

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

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

For more information visit…

www.barandrestaurantinsurance.com

Cut Costs, Boost Productivity Through POS Software and Equipment

Cyndi

Working Smarter, Not Harder

Smiling bartender taking order

By: Cheryl Gray

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Top 10 Reasons to Automate Your Brewery

Cyndi
man holding cell phone gathering data from brewery equipment

By: Aaron Ganick, BrewOps

Brewery equipment is expensive and must be carefully maintained. Downtime is even more expensive. That’s why brewers are searching for ways to streamline operations, compile useful data, and keep eyes on their critical equipment 24/7.

  In the recent past, small- to medium-sized craft breweries relied on pen and paper methods for record-keeping and data collection. Only the largest breweries had access to real-time, actionable sensor-based intelligence. But even then, the automated intelligence was expensive, inflexible, and difficult to modify. The craft brewing industry requires technology that matches its creativity and ingenuity—automation that is intuitive, nimble, easy to install and use, and solves real problems that all brewers face daily.

  With a streamlined ecosystem and affordable sensor technology, even the smallest breweries can automate their equipment in a day and immediately receive critical benefits like reducing purge times, increasing operator and product consistency, preventing chiller failure, monitoring glycol temperatures entering and exiting the chiller, preventing product loss, and monitoring dissolved oxygen levels at any part of the brewing process—all while receiving alarms and notifications that save the brewing operators from an unexpected bad Monday morning.

  The benefits of implementing automation in a brewery environment are numerous. Here are the top 10 reasons to use sensor technology to enhance various aspects of the brewing process.

1. Ease of Mind:  When it comes to monitoring crucial equipment throughout the brew house, sensor technology provides confidence that the utilities are acting the way they should. When anything goes wrong, operators receive instant notifications so they can react as quickly as possible with a minimum amount of downtime or disruption to the product. Automation provides “eyes on the equipment” 24/7 and allows operators to focus on the myriad of other responsibilities throughout the facility.

2. Actionable Data and Insight:  Sensor technology provides a communication methodology that enables long-range and high-speed data transmission from sensors to either a mobile app for local access or to a gateway that relays information to a cloud-hosted solution viewable from anywhere in the world. For example, vibration sensors notify operators if a motor is failing and requires service.

  Temperature sensors provide alerts when critical processes deviate from set parameters, and pressure sensors arm operators with essential tank level and utilization data. By continuously monitoring and analyzing data on variables such as fermentation gravity and pH, brewers can optimize processes to improve the quality and consistency of future batches. Additionally, monitoring purge gas usage and CIP water waste helps reduce consumption and costs, enhancing both efficiency and sustainability.

3. Ease of Installation: Sensor technology is plug-and-play, requiring no IT support or complicated systems integration. Installation takes only a few minutes, and sensors start delivering data immediately once they are digitally activated. Modern sensing technology is extremely rugged, does not require professional installation, and requires minimal space. Additionally, they are battery-powered with a replaceable, long-lasting industrial power source.

4. Ease of Use:  The technology is sophisticated yet simple to use, requiring minimal training. It enables brewery operators to quickly respond to alerts and make necessary adjustments to ensure equipment efficiency and product consistency. The user-friendly interface allows operators at any skill level to monitor and manage processes effortlessly, ensuring smooth operations and high-quality production standards.

5. Time, Money, and Downtime Savings:  Brewery equipment is expensive and must be carefully maintained, but downtime can be even more costly. Alerts enable operators to take appropriate actions to keep systems operational. Reduced tank purge time saves money and decreases CO2 consumption.

  Consistent steam production from the boiler significantly impacts beer quality in the brewhouse. Sensor technology ensures consistent fermentation temperatures, which can be challenging to maintain in the cellar. A failing chiller can cause rising temperatures that lead to off-flavors, off-aromas, and potentially wasted batches of beer that are unable to be sent to packaging. Some brewers report that an unnoticed chiller failure can result in the loss of a thousand gallons of beer.

  Automated systems optimize the use of energy, water, and raw materials, reducing waste and lowering the brewery’s environmental footprint.

6. Consistency and Quality Control:  When each batch of beer is brewed under consistent conditions, variability is reduced and high-quality standards are maintained. Sensor technology provides granular data that ensures that the quality of the final product is controlled. Automation enhances precision in timings, temperature, and other variable measurements to ensure that ingredients are added at the right moments in the correct quantities—which is crucial for achieving the desired flavors and aromas of craft beer.

7. Efficiency and Productivity:  Automated systems streamline the brewing process. This leads to higher production rates, brewery tasks to be completed more efficiently, and the ability to meet growing demand without compromising quality. Significant cost savings with regard to wages and associated expenses can be realized by automating repetitive and labor-intensive manual tasks.

8. Improved Safety and Regulatory Compliance:

  Automation is crucial to reducing the risk of human error and minimizing exposure to hazardous conditions. For example, the Clean-in-Place process that is used on most brewery equipment can be automated to keep workers less exposed to boiling hot water and harmful chemicals. Sensor technology also helps to ensure that brewery operations comply with industry regulations and standards by maintaining accurate records and consistent practices.

9. Innovation and Adaptability:  Automation enhances the creativity and ingenuity that already exists in the brewing industry. Brewers can quickly implement new techniques and recipes with flexible automation that allows them to experiment with different styles and flavors.

10. Scalability:  Even the smallest brewers can automate quickly and inexpensively by utilizing sensor technology. One sensor on one piece of equipment can be an immediate game changer. Breweries can scale up as significant savings are realized through more efficient processes and reduced downtime. Automated systems can be adjusted to handle larger volumes without the need for extensive manual intervention.

The Value of Brewery Automation

  Sensor technology does more than just solve problems—it helps to anticipate problems before they occur. It provides flexibility and agility to the brewing process. With automation, breweries can achieve greater efficiency, consistency, and quality while also enhancing safety and sustainability in their operations.

  Automation and sensing technology are now accessible to all breweries. Fast and easy-to-install systems can get brewers up and running quickly, even for older infrastructure that was designed with “day one” operation in mind and not the future. All types of brewing equipment can be easily and affordably outfitted with sensor technology.

  These sensors can reduce total capital expenditure while also minimizing waste streams. Most importantly, from day one, actionable data provides real results to solve problems, benefiting even the smallest breweries.

About the Author

   Aaron Ganick is a serial technology entrepreneur and the founder and CEO of Preddio Technologies, the parent company of BrewOps.  Aaron holds a degree in electrical engineering from Boston University and has authored dozens of granted patents in the fields of optical networking, telecommunications, and automation systems. He can be reached at aaron.ganick@brewops.com. For more information on BrewOps, the fast and easy-to-install brewery automation platform. For more information please visit www.brewops.com

Whiskey Investing

Cyndi

Considerations in Creating the Proper Legal “Mash Bill” to Protect Your Collateral

In 2024, the global whiskey market’s worth has swelled to around $70 billion and is forecast to hit $125 billion by 2032. https://www.gminsights.com/industry-analysis/whiskey-market. This has made some look to whiskey as an attractive target for private investment.

  Often, such investments are secured by the whiskey and related assets, as collateral. Here are tips on at least some of the considerations in creating the right recipe for such an endeavor.

Secure Your Interest in the Collateral

  The investor should ensure that it accurately secures its interest in the collateral by entering a written security agreement with the whiskey producer. A security interest attaches to the collateral and is enforceable against the debtor and third parties if: (1) value is given; (2) the debtor has rights to the collateral (i.e., the owner of the collateral or the right to transfer the collateral to the secured party); and (3) the debtor executes a security agreement. See UCC § 9.203(a).

Common Considerations in Entering a Security Agreement

Collateral Owner Identification: You will typically want the security agreement to correctly name the owner of the collateral. Among other things, confirm the name of the legal entity on the applicable secretary of state’s website; request and verify documentary proof that that party actually owns the collateral; include recitals of ownership in the security agreement; define the owner (once identified) in the agreement to include parents, subsidiaries, related companies, companies under common ownership, and the like; and take similar steps.

Non-Transfer:  It can also be helpful for the security agreement to include language that prohibits the owner of the collateral from conveying, transferring, or assigning the collateral without your written consent, and affirmatively states that the owner will not do so.

Successor Liability:  Consider including a successor liability clause that extends the security interest in the collateral to any subsequent owners in the event of an unauthorized conveyance, transfer, or assignment of the collateral. George W. Kuney, A Taxonomy and Evaluation of Successor Liability, 6 FLA. ST. U. BUS. L. REV. 9, 11 (2007) (“Successor liability is an exception to the general rule that, when one corporate or other juridical person sells assets to another entity, the assets are transferred free and clear of all but valid liens and security interests.”). Such a clause may also affirmatively require the named owner to take all affirmative steps reasonably necessary to cooperate with you (including, but not limited to, providing and signing any and all requested documentation) in recouping the collateral, should such an unauthorized transfer occur.

Describe the Collateral Correctly:  The collateral needs to be described such that a third party can reasonably identify it. What that means is the subject of a lot of law and “magic words.”

  As of July 1, 2001, all 50 states had adopted Article 9 of the Uniform Commercial Code, which governs secured transactions. While each state may differ in its interpretation and application of its implementation of Article 9, all will typically require that the description of the collateral be sufficient so that it reasonably identifies what is described. See UCC § 9.108(a). Particularly, a description of the collateral will reasonably identify the collateral and be sufficient if it identifies the collateral by specific listing, category, a type of collateral identified by UCC Article 9 as enacted by the state in question (such as inventory, equipment, deposit accounts, etc.), quantity, formula, or the catchall—any other method, if the identity of the collateral is “objectively determinable.” See UCC § 9.108(b). A general description of the collateral as “all the debtor’s assets” or “all the debtor’s personal property” is not (alone) typically sufficient. See UCC § 9.108(c). It may also help to include in the description that the collateral is “investment property,” “inventory,” “accounts,” “contracts,” “proceeds,” if those descriptions are accurate, and always include certain “after-acquired property” language. See, e.g., UCC §§ 9.108(d), 9.204.

  So, what does all that mean? It depends on the circumstances, and this is especially an area where pennywise legal advice in the drafting stage can have tremendous value down the line.

Perfect Your Security Interest:  “Perfection” of a security interest is the process of publicly establishing a security interest in collateral for purposes of gaining priority among other interest holders. https://www.law.cornell.edu/wex/perfection. Among competing security interests, one that is perfected will prevail over those that are unperfected. See UCC § 9.301.

  Perfection typically requires filing a UCC financing statement with the appliable secretary of state. A UCC financing statement is a document that includes basic information regarding your security interest, including the debtor’s name and mailing address, the secured party’s name and mailing address and that key description of the collateral. A primary purpose of all of this is to give the world notice of your security interest in the collateral you hope to lock down to protect your investment. You’ll want to file the UCC financing statement as soon as possible, and keep it current.

Other Typical Considerations

  Beyond the security agreement, there are many other considerations to take into account. A couple common ones are interest and warehouseman relations.

Interest—Hogs Get Slaughtered:  Of course, you may wish to charge interest on your investment. It is imperative that you be precise and conservative about the interest rate and the terms of the interest calculation to avoid committing usury, which carries severe penalties.

  Make sure that you know the maximum pre-judgment interest rate allowed by your state. Any percentage above that percentage, whether as stated or as calculated based on the agreement’s terms, can be usurious. And fixing an error there is often not as simple as correcting it after it has been called out—that is often too late.

  When calculating interest, good practices include always rounding down, never up; excluding the start and end days of interest; and being careful about including and wording compounding provisions, as the law around those can vary widely.

Make Friends with the Warehouseman:  In the craft whiskey space, it is likely that the barrels will be stored in a bonded warehouse, or else the distiller may be losing money by having to pay the taxes off the still, rather than after absorption and evaporation has occurred.

  Bonded warehouses were first created by Federal law passed on Aug. 1, 1862; were taken advantage of to create Bottled-in-Bond spirits with the passage of the Bottled-in-Bond Act of 1897; and had their current bonding period structure set by the passage of the Forand Act of September 2, 1958.

  In addition to the primary tax concerns addressed by all of these laws, the Bottled-in-Bond Act was passed to help ensure the authenticity and quality of the whiskey that the customers were drinking, in a time when many whiskeys and spirits contained unhealthy additives used by certain unscrupulous “Rectifiers.” Bonded warehouses are registered with, regulated and controlled by the federal government and their gaugers and provide a government-backed storage space for producers of craft whiskey to store their products.

  Whether the storage facility of the collateral is a bonded warehouse or not, it is important for the investor to maintain a good working relationship and a steady stream of communication with the individuals who run the particular warehouse. Having this rapport with the warehouseman will be important to help monitor the collateral to ensure that (when the collateral is whiskey), it is kept properly, doesn’t “walk out the door” randomly, and can be reliably held if there is a default or dispute that may implicate the investor’s rights in the collateral.

Summary

  In sum, if you are looking to invest in the craft whiskey industry, remember these tips to ensure that your investment is secured:

•   Make sure the owner of the collateral is properly identified in the security agreement;

•   Prohibit unauthorized transfers of the collateral and include a successor liability clause and/or a clause that requires your signature to authorize a transfer of the collateral in the security agreement;

•   Be thoughtful, careful and precise in your description of the collateral, taking into account the legal requirements and legal meaning of the language you use (or don’t use);

•   Perfect your security interest in the collateral by filing a UCC financing statement with the secretary of state as soon as possible to have priority over other creditors;

•   Don’t be greedy when it comes to providing for and calculating interest;

•   Build and maintain good relationships with the warehousemen where the collateral whiskey is stored for aging so that you can make sure that the whiskey is properly maintained, remains in good condition and is there when you need to foreclose on it.

  Ross Williams (rwilliams@bellnunnally.com) and Ty Johnson (tjohnson@bellnunnally.com) are partners, and Catherine Baldo (cbaldo@bellnunnally.com) is an associate, at Bell Nunnally & Martin LLP, a full-service business law firm based in Dallas, Texas. This article is for informational purposes only, and neither constitutes, nor should be taken as, legal advice or legal opinion.