Category: General

Starting a Distillery

Cyndi

Why, When, Where, and How?

By Stephen Tomori, Kindred Spirits Consulting

The process of starting a distillery is a daunting adventure that a number of entrepreneurs have undertaken in the past decade with mixed results. The process itself is comprised of navigating outdated and overly complicated government regulations, tariffs, fights with local authorities unfamiliar with the codes related to building out a distillery, and then trying to stake a claim in one of the fastest growing consumer markets.

  Some of these entrepreneurs have failed at their first attempt, due to improper planning and poor usage of available funds. Others are barely making ends meet, while burning the candle at both ends. Finally, you have the final category of those who planned well, executed their plan, and have reaped the rewards of success.  There are no guarantees when it comes to starting a business and a distillery is no different than any other venture. However, in order to have the best chances in making your business a success you will need to consider the Why, When, Where, and How before embarking on this journey.

Why am I Starting a Distillery?

  The reasons why you are starting a distillery affect your motivations and your willingness to stick out some tough times. If your goal is to make money, you can stop right here. If your goal is to make some truly great spirits and pursue a passion you might be on the right track.

  The world is changing and there have been some major shifts in the buying mentality of the younger generation. Consumers are picking up on the fact that the line between true craft spirits and commercialized mass-produced spirits is becoming blurred. The reason? A number of so-called craft distilleries are simply sourcing in commodity spirits and GNS flooding the market.

  The quality of the spirits you make are largely dictated by the quality of the raw materials you use. Since craft distilleries operate on a smaller scale and have more control over their day to day, there should be a noticeable difference between something made from scratch from the highest quality grains available and standard commodity grains. Your commitment to making something unique and truly great is what will help you maintain momentum despite the challenges you will face throughout the process.

  Your definition of success is also something you should consider before starting a distillery. Are your aspirations to be acquired by a major company? Do you dream of having a nationwide brand on shelves in stores and bars across the country? These dreams can be attained with a large budget for a buildout in a great space and by dedicating an enormous sum to marketing and branding. If your definition of success is a little smaller, doing something you love, something you can share with friends and family while covering your expenses and then some, you will be able to achieve those goals with less monetary investment.

When is the Best Time to Start a Distillery?

  We are currently in a craft distilling boom. There are now over 3,000 craft distilleries in the United States and that number continues to grow each year! Craft breweries and wineries are on the decline, but consumers are continuing to enjoy the great craft spirits being made. Now more than ever people have options when it comes to the sprits they are enjoying. Many are using this opportunity in the market to pivot from other careers to distilling. Some of the best distillers are from backgrounds in art, engineering, sciences, and other fields where they are able to apply the skills they have developed over the years to the art of distilling.

  Every industry has its highs and lows and there definitely was a major increase in consumption during the pandemic, that is not to say that people are not consuming now. The amount of alcohol consumed annually has steadily grown each year in the world and consumers are developing a taste for premium spirits. Over the past few years there has been increases in the premium and super premium markets by 35.2% and 22.8% respectively, according to research done by Penn State. This kind of market shift is great for craft distilleries as it is primarily the highest profit section in the industry. The premiumization focus has been primarily on Whiskies like Bourbon and Scotch, but other spirits are on the rise like American rums, gins and RTDs.

  Each business will have to count the cost to determine if now is the right time.  While still possible to get small business loans and other forms of monetary inputs, loaners are becoming increasingly stricter. Meeting your funding goals is a crucial step in starting a distillery, so be sure to make an honest assessment of whether your goals are feasible.

Where Should I Start My Distillery?

  This is the $500,000/1 Million/10 Million dollar question. The location of your distillery will drastically affect the total amount of funds required in its buildout and construction. Things that can be significantly different from place to place are taxes (both excise and local), property costs, building codes, population density, population demographics, and much more. Expectations also change depending on where you are located.

  The main focus of picking a location is ensuring it is large enough to fit the right sized equipment to be able to meet all of your production goals for the first three to five years and enable you to sell and showcase your products efficiently. 

  If you are in a small town, you might be able to make a decent living with a small distillery with a small bar attached to showcase your spirits. This would enable you to keep your up-front costs down and start turning a profit quickly.

schematic building plans for a distillery

  Life in a big city can be a bit more challenging to start. You will have to deal with increased property or lease prices and in turn have to increase your production and sales to match. You may also have to compete with other bars/restaurants, so the fit and finish of your public facing space will need to be a bit more sophisticated to draw in consumers. You will have access to a much greater number of consumers and your marketing and advertising will see greater impact and returns. You also could potentially have the best of both worlds with a “Non-Contiguous” setup where the majority of production is performed at one site while you maintain a smaller public facing space to interact with consumers. This allows for great production capability in a larger cheaper area, yet maintain the pros of having a smaller location in a prime area for sales.

  Your commute is another thing to think about when selecting a location for your distillery. During the first few years of operation, you will be spending a large amount of time at the distillery. Do you really want a long ride home after working all day? Another thing to think about is the local availability of workers to help you achieve your goals. Are there enough employees available to help with distilling, bartending, and sales in your area? Do a thorough investigation to see what comparable salaries would be for those working at your establishment.

How Can I Make Sure I Make the Best Decisions Throughout the Process?

  If you have made it this far and you are committed to pursuing the process of starting a distillery you no doubt you want to do everything you can to make it a success. This involves wisely budgeting and spending, setting up a safe and productive space for making your product, using the best raw materials you can to ensure the quality of what you make, and to dedicate the proper amount of money towards marketing and branding.

  Marketing and branding are what introduce your product and brand to the consumer. With so many options out there, a compelling story and professionally designed label is key to having someone give your product a chance. It has been said numerous times, “your branding sells your first bottle, and your quality sells your second” so don’t skimp when it comes to developing your brand.

  The best advice anyone can give is to learn all you can before embarking on this journey. There are a number of ways to get familiar with the industry.

  Extensive courses are available through schools like Heriott-Watt, Louisville University, Kentucky State and others. Keeping in mind that these courses take a significant amount of time and going back to school may not be an option for those who already have other careers or family responsibilities. Short courses are offered by other establishments that won’t be as much of a time investment, but they still cost a decent amount of money and only give you a brief overview of the processes typical in a distillery.

  If you don’t have the time or extra funds to attend one of these schools, your best option is to hire a guide to help you along the way. There are a number of consultants and consulting groups in the industry who can help you to reach your specific goals, while saving you money and headaches.

  Many of them offer consulting on the things specific to your situation and needs. They can help you navigate the confusing waters of the TTB paperwork and permitting process, assist with layout and equipment selection, help you develop recipes, teach you how operate your equipment, and much more.

  Don’t be afraid to ask for help when you need it. A good consultant should save you significantly more than you spend on their services. If they aren’t saving you money or headaches switch to someone who will.

Kindred Spirits Consulting: Owner and Lead Consultant Stephen Tomori

Kindred Spirits Consulting: Owner and Lead Consultant Stephen Tomori

Cold Chain Logistics

Cyndi

How Craft Beverage Producers Can Protect Product Quality During Distribution

warehouse full of beer on pallets

By Nick Fryer, Vice President of Marketing, Sheer Logistics

Expanding into new markets is a major milestone for craft beverage producers, but it’s also when supply chain vulnerabilities tend to surface. Inconsistent storage conditions, longer transit times, and unfamiliar distribution partners can all jeopardize product quality and brand reputation.

  For today’s craft brewers, distillers, and ready-to-drink innovators, ensuring product integrity isn’t just about preserving flavor—it’s about having a cold chain strategy that can scale. From temperature-sensitive transit to final-mile delivery, success depends on reliable partners, smart planning, and the right equipment.

  In this post, we’ll break down the cold chain logistics challenges facing small and mid-sized beverage producers and explore the tools and strategies that can help them grow without compromising quality.

What “Cold Chain” Really Means for Craft Beverage Producers

  A “cold chain” is a supply chain that ensures temperature control from the moment a product is produced all the way to its final delivery. This includes any warehousing and storage, as well as transit time.

  Cold chain logistics involve the use of carefully managed refrigeration that can be adjusted to the specifics of whatever is being transported. For most craft beverage producers, 4-6 degrees Celsius has become the standard. Storing craft beer at 4 degrees has been proven to ensure flavor stability and meet food safety requirements. Anything above 6 degrees is associated with a reduction in the overall quality.

Why Craft Beverage Producers Benefit from a Cold Chain

  There’s a common saying that the minute you drive a car off the lot, it loses 10% of its value. Food and beverage products are fighting a similar battle. Every second they’re not in a controlled environment, they risk losing some of their quality and, in turn, their value.

  This is a major issue for craft beverages, which are generally less processed than their conventional counterparts. It’s what creates their unique taste profiles and keeps this industry so interesting. It’s also, however, what puts many products at risk of microbial growth and other chemical reactions that degrade the freshness and quality. The color can shift as the product is exposed to heat, as can the taste.

  Proper refrigeration and a cold chain that enforces it slows this process of degradation so that the product a brewery sends out tastes the same before and after delivery. The benefit of this is:

•     Fewer product recalls.

•     A stronger brand reputation. People feel more confident that they’ll get the same taste and quality, time and again.

•     Happier customers overall.

Spotting Temperature-Driven Quality Failures in Transit

  Experimental beers and spirits are what put American craft breweries on the map. Even with the variety that’s celebrated, there are a few common signs that something’s gone wrong.

  Here are some of the best ways to spot if temperature-related failures in transit are affecting the quality of a craft beverage:

•     Beverages appear cloudy when they shouldn’t be. This is often down to a microbial bloom that can happen with heat exposure.

•     The color of the product has changed. Oxidation is another common chemical reaction that happens when more natural brews are exposed to higher temperatures.

•     Beverages gush or are over-carbonated upon opening. This may even just show up in cans that seem to have expanded or suddenly have leaky seals. The issue comes down to fermentation, which is usually triggered by warmth. It’s something that craft beverages with live cultures in them (such as hard kombucha) have to be particularly wary of.

•   The beverage tastes different. It may suddenly be quite sour or “funky” when it shouldn’t be or develop a hop-forward profile that wasn’t there before. This can be from a combination of oxidation and microbial activity.

  If perfectly good beverages get sent out but then display the above issues upon arrival at their destination, it’s a sure sign that something’s gone wrong in transit. Another general red flag is when a product’s shelf span suddenly seems to be quite limited. That alone can point to issues in the supply chain.

From Tank to Taproom: Identifying Weak Links in Your Cold‑Chain

The best way to identify weak links in your cold chain is to check it, step by step:

•    The Production Facility: From the minute the beverage is packaged, it needs to be in a cold room that is continually monitored and handled carefully by staff.

•     Loading Areas: Docks and staging areas should be kept cold so that as the product is moved from one environment to another, it’s kept at a controlled temperature.

•     Transportation: No matter what method of transportation is used, some method of cooling has to be involved.

•     Distributor Warehousing: Products need to be labelled to indicate that they require cold chain storage, and warehouses should be vetted to ensure they have adequate experience and capacity for that storage.

•     Bars and Retailers: The cold chain isn’t over until the drink is being poured from the tap into a waiting customer’s glass. To ensure cold storage at this final point, retailers need to be educated and informed on how best to refrigerate the product.

warehouse showing pallets full of beer boxes

Cold‑Chain Gear That Works: Trailers, Packaging, & Storage

  There are a myriad of ways to approach cold chain gear. Here’s what actually works:

•     Long-distance cold chain transportation needs refrigerated trailers with insulated side walls, proper seals, and real-time temperature monitoring.

•     Shorter or local logistics can get away with insulated vans that keep portable cooling systems and ice packs stable.

•     Reflective, foil-lined pallet covers and thermal blankets can be used to maintain low temperatures when loading or unloading in unrefrigerated areas.

•     Packaging that keeps out heat and humidity is just as important as fridges and kitted-out cold chain trucks. Even simply making sure that everything is shrink-wrapped can prevent heat buildup.

Smart Monitoring Tools: Tracking Temperature, CO₂, Humidity, & Shock

  Cold chain gear works best when it’s paired with smart monitoring tools and IoT sensors. The technology can track key variables in real time and send alerts if anything changes, so that businesses have time to intervene before quality degrades. The data collected can also be used later to further optimize the cold chain and make more energy and financially efficient decisions.

  Here are the main aspects worth tracking in a craft beverage cold chain and why:

•     Temperature: This is important no matter what kind of craft beverage you’re transporting, as any heat exposure can cause oxidation and spoilage.

•     Humidity: High humidity often leads to mold growth on packaging or the rusting of metal kegs. Anything transported long distances, especially in warmer months, should have humidity levels monitored.

•     C02: Build-up of this gas can accelerate fermentation in craft beverages and lead to bursting cans and bottles, especially if a product has active cultures in it (such as the yeast in a hazy IPA).

•     Shock: Too much shock during craft beverage transportation risks packaging and product integrity and can also damage cooling systems.

  By monitoring all of the above, especially through centralized tracking and logistics platforms, craft beverage companies can maintain a controlled environment for their products. The result is then improved quality control.

Conclusion:

Keeping It Cool from Production to Pour

  There is so much work that goes into creating craft beverages. Investing in cold chain gear, technology, and logistics strategies ensures that none of that work gets lost in transit. Instead, breweries can rest assured that they’re always putting their best product forward and, in doing so, building a brand reputation that keeps people coming back.

Nick Fryer is the Vice President of Marketing, Sheer Logistics. Nick has over a decade of experience in the logistics industry, spanning marketing, public relations, sales enablement, M&A and more at 3PLs and 4PLs including AFN Logistics, GlobalTranz, and Sheer Logistics.

Did Home Distilling Get Legalized?

Cyndi

It Depends on Who You Ask

distillery equipment on a table outside a home

By Kris Bohm, Distillery Now Consulting

Every distiller got their start distilling somewhere even if it was not necessarily legal. Many American distillers did not make their first batch of spirits in compliance with the laws of the United States. If you ask most professional distillers and distillery owners where they got their start, these people are not always open to discussing this topic. The reason for the hushed tones or outright silence when discussing learning distilling is that many distillers made their first batches of distilled spirits illegally. United States laws spell out that it is illegal to distill at home. If you were to hypothetically set up a little 5 gallon still at home and distill a few bottles of moonshine you have committed a criminal activity that warrants a felony in the United States. Because many distillers got their start in this exact way, the topic of the roots for distillers is not a vocal discussion. Hobbyists and professional distillers alike both tend to agree that home distillation should be legal and better regulated, but the battle to change the laws has not been an easy one.

  It is not common knowledge among the public of the antiquated laws regarding home distilling. The TTB, which is the government organization that regulates distilling states the following. Within title 26 of the United States Code, section 5601 sets out the following criminal penalties for producing distilled spirits at home. Offenses under this section are felonies that are punishable for up to 5 years in prison, a fine of up to $10,000, or both, for each offense. Some of these offenses include owning an unregistered still and possessing distilled spirits that have not been paid tax. While it is perfectly legal for an individual to produce their own beer or wine at home without any consequences (nor any taxes due) the production of distilled spirits at home is wholly illegal. It is quite absurd at first glance to understand why some homemade alcohol is legal (beer and wine) and others (distilled spirits) are not. This difference has helped to form the argument and a legal case to change laws related to home distilling.

  There are many books on the topic of home distilling and vendors all over the United States who can and will legally sell distilling equipment and materials for distillation. It is legal to sell distilling equipment of all sizes and the responsibility of the still purchaser to register the equipment with TTB. The Federal Government does not allow home distilling and so small stills fit for a hobby size scale are inherently illegal to own as you cannot register them with the TTB. Home distilling is a perfect platform to perfect the art of science and distilling. In fact, many professional distillers made spirits illegally at home prior to growing their hobby into a commercial distillery. While there are many new craft distilleries emerging, if home distillation was made legal it would likely contribute to more commercial craft distilleries opening their doors. The boom and growth of craft breweries is partially attributed to the legalization of homebrewing which was allowed in 1978.

  In 2024 the ridiculous restrictions regarding home distilling are finally getting their day in court. A home distilling group known as the Hobby Distillers Association (HDA) which represents over 1300 home distillers, is a group based in North Texas. One member of this organization had received a letter from the TTB notifying the individual that the TTB was aware that this individual purchased a small still and the still was not registered with the TTB. The letter further went on to cover the penalties for home distillation which can include jail time and large monetary fines. The individual who received this letter not only felt threatened by the TTB but felt action was needed to protect other hobby distillers. The HDA decided it was time to take action to change the laws that prohibit their hobby and work to protect its members from criminalization. Thus, the Hobby Distillers Association filed a case with the United States Court of North Texas that in essence stated the laws regarding home distilling were unconstitutional for a slew of reasons. The HDA contested that laws prohibiting home distillation did not accomplish the intent of the law to protect tax revenue. As part of this case the goal for the Hobby Distillers was to get the court to rule in their favor so that participating in the hobby of home distilling would no longer put hobby distillers at risk of severe criminal penalties.

  District Judge Mark Pittman who sat on the case found himself ruling in favor of the distillers on a rather interesting angle regarding the law. Pittman found that while the laws regarding distilling are intended to protect federal tax revenue they do not actually accomplish their intent. Because the original intent is not accomplished the laws are an over extension of the power of Congress. While the TTB outright bans the use of distilling equipment at one’s home, there is no space within this ban to regulate taxation. Further, the limited amounts produced in home distillation as demonstrated by the HDA does in no way jeopardize the revenue collected by the government from the taxation of spirits produced by legal commercial distilleries. In the opinion written by Judge Pittman he stated Congress did nothing more than statutorily ferment a crime— without any reference to taxation, exaction, protection of revenue, or sums owed to the government. With humor the judge has in essence ruled in favor of the hobby distillers to carry on with their hobby at home without fear or risk of prosecution.

This ruling is a positive change for home distillers and hobbyists, but it is not certain just yet. There are still bigger changes that need to be made to truly legalize home and hobby distilling. The opinion as put out by the judge does not change the laws. It merely protects the individuals from a law that is unjust. Currently the federal government and TTB still can seek changes to the judge’s ruling. It is important to note that some states have specific laws regarding home distilling. If you are considering practicing home distilling or distilling without a permit, I would recommend you research laws regarding the hobby and learn safe distilling practices as well.

  Written by Kris Bohm of Distillery Now Consulting. When Bohm is not busy distilling he can be found cracking lame dad jokes and riding bikes.

  The Decision regarding this case is Hobby Distillers Association et al. v. Alcohol and Tobacco Tax and Trade Bureau et al., Case No. 4:23-cv-01221, in the U.S. District Court for the Northern District of Texas

  TTB rules on Illegal Distilling can be found here.

https://www.ttb.gov/distilled-spirits/penalties-for-illegal-distilling

Make It Easy to Say Yes

Cyndi

How Brand Clarity Drives Shelf Space, Sales Growth, and Strategic Opportunities

bottles of corona extra beer in sand

By Jake Ahles, Morel Creative

Craft doesn’t guarantee growth, Clarity does. In today’s saturated beverage market, the brands winning shelf space, closing distribution deals, and attracting serious investment aren’t always the ones with the best product. They’re the ones with the clearest story.

  The ones who make it easy for buyers, investors, and consumers to say: “I get it. I want in.”

If you’re preparing for the next big trade show, fundraising round, or distributor meeting, here’s the hard truth: your product alone isn’t enough. You need a brand story that sells.

  This article lays out how distillers and craft beverage founders can use brand clarity as a sales weapon—turning marketing from an afterthought into a revenue driver, a distributor enabler, and a signal to future investors that you’re ready for prime time.

The Growth Bottleneck No One Talks About

  You’ve nailed the flavor. The packaging pops. Maybe your tasting room hums with energy or your founders’ story turns heads.

  But when a buyer asks, “What makes you different?” or an investor says, “Why now?”, you find yourself fumbling.

  It’s not because you don’t care—it’s because clarity is hard. Especially when you’re close to the product.

Here’s what often happens:

•  Your sell sheet is too busy.

•  Your pitch deck meanders.

•  Your reps are all telling different stories.

•  Your digital presence confuses more than it converts.

And so…

•  Buyers pass.

•  Distributors deprioritize you.

•  Your reorder velocity flatlines.

•  Funders say, “We’re not quite sure where this fits.”

  All while a competitor brand with half your soul—but a sharper story—wins the shelf.

Clarity = Conversion: What Trade Buyers and Investors Need to Hear

  Let’s start with what your key decision-makers are really thinking:

Distributors and Trade Buyers:

•  Can I sell this easily?

•  What makes this different from what’s already on my shelves or menu?

•  Will consumers understand it right away?

•  Will my staff be able to talk about it with confidence?

Investors:

•  Is this brand built to scale?

•  Can the founder or team articulate their differentiation in under 60 seconds?

•  Does the positioning reflect a deep understanding of the market?

•  Will this story resonate with future buyers or acquirers?

  If your content and messaging don’t answer these questions clearly and consistently, you’ve created friction. And friction kills momentum.

Brand Clarity in Practice: The Assets That Drive Decisions

  Clarity isn’t just a vibe—it’s a system. When your materials are clean, aligned, and easy to use, you create confidence. Confidence leads to yes. Here’s what that looks like:

1. Your One-Liner: The headline on your sell sheet, website, or intro slide should immediately explain what you do, who it’s for, and what makes it different.

Not: “A bold new botanical experience.”

Better: “Zero-sugar craft spirits designed for modern mixologists.”

2. A Streamlined Trade Deck:

Three to five slides max. Visuals first, words second. Answer:

•  What is it?

•  Why now?

•  Who’s buying it?

•  Why it moves units.

3. Sell Sheets with Punch: Focus on the highlights.

•  Brand origin in 2–3 lines

•  Product SKUs, pricing tiers

•  Flavor profiles or use cases

•  Distribution + reorder details

•  Beautiful bottle shots + fast contact info

4. Distributor/Rep Tools:

•  One-pagers for each product

•  Internal videos explaining the brand story

•  Ready-to-send follow-up kits with shareable content

5. Digital Ecosystem:

•   A centralized media library

•   Consistent messaging across web, social, print

•   Video shorts that reinforce key points

The Ecosystem Approach: A Playbook for Growth

  At Morel Creative, we think of clarity not as a single asset, but as an ecosystem—a cohesive content system that works across:

•  Internal team training

•  Sales meetings and trade shows

•  Distributor enablement

•  Consumer marketing

•  Investor conversations

  This approach is what inspired our F.E.E.E.D. Framework, a storytelling system designed to unify your brand story across sales, marketing, and trade—with assets that build clarity, foster connection, and drive momentum across every touchpoint.

For distillers, this could look like:

•   Crisp sell-in tools that win attention in national accounts

•   Thoughtful origin stories that connect in regional campaigns

•   A modular content system that works across markets and team members

The goal? Scale your story

without diluting your soul.

Proof: What Happens WhenYou Nail It.

We’ve seen the results firsthand:

•  Faster shelf placements.

•  Higher distributor engagement.

• Improved sell-through and reorder velocity.

•  Better investor traction.

•  Readiness for acquisition or national expansion.

  Brands that invest in clarity don’t just look better. They move faster. They scale without chaos. They enter new markets with confidence. They stop relying on founder charisma alone—and start building momentum that’s replicable.

Final Thoughts: Clarity Is an Act of Respect

  You’ve put your heart into your product. You’ve spent late nights dialing in flavor, sourcing, compliance, packaging, and logistics.

Now give your sales partners, buyers, and future investors the same attention.

Make it easy for them to say yes:

•  Build a one-liner that lands.

•  Create a pitch deck that converts.

•  Organize your story so others can tell it for you.

Because the best products don’t always win. The clearest ones do.

Clarity sells!

It’s Time to Roll Out the Barrel

Cyndi

Oktoberfest in Germany and Around the USA

Oktoberfest 2025 group shot

By Melissa Watkins, Loan Mantra

As we prepare to roll out the barrel for Oktoberfest, the world’s most renowned beer festival taking place in Munich, Germany, we invite you to immerse yourself in this grand celebration of Bavarian culture. This annual two-week event showcases an abundance of beer steins, pretzels, lively dancing, traditional attire, beer tents, carnival rides, and fun. Although its name suggests it occurs in October, Oktoberfest kicks off in September. This year’s festival begins on September 20 and continues until October 5, 2025, marking an impressive 190 years of festivities! We will explore the various aspects of Oktoberfest, including its financial impact on the Munich economy and how these valuable lessons can be applied to your beer business.

Oktoberfest History

  The inaugural Oktoberfest took place on October 12, 1810, as part of the wedding festivities for Crown Prince Ludwig (later King Ludwig I) of Bavaria and Princess Therese von Sachsen-Hildburghausen. Residents were invited to enjoy a five-day celebration culminating in a horse race at Theresienwiese or “Therese’s green.” The event’s popularity led to the race being held annually, eventually evolving to include food stalls and beer tents, resulting in the pop-up beer halls made of plywood, complete with interior balconies and bandstands, that visitors enjoy today. These beer halls and tents accommodate over six million guests anticipated at the 2025 Oktoberfest.

  Preparations for this year’s event started June 30. Each Munich brewery constructs temporary structures with seating for around 6,000 people. The breweries also participate in parades featuring beer wagons, floats, and people dressed in folk costumes. The mayor of Munich officially opens the festival by tapping the first keg. Total beer consumption during Oktoberfest exceeds 75,800 hectoliters (approximately 2 million gallons).

Economic Impact of Munich Oktoberfest

  Oktoberfest serves as a significant driver of economic growth, generating €1.25 billion and accounting for up to 2% of the city’s Gross Domestic Product (GDP). Millions of visitors from across the globe greatly contribute to hotel occupancy rates, dining, shopping, and public transportation. Despite rising beer prices and high inflation, 6.7 million guests attended Oktoberfest last year. Each year, 12,000 to 13,000 jobs are created due to the festival, resulting in an annual wage growth of 6.6%.

  The creation of both temporary and permanent job opportunities benefits individuals and bolsters the city’s economy. The influx of workers leads to increased spending in Munich, positively affecting businesses beyond the festival. Local restaurants, transportation services, and accommodation providers all experience heightened activity, contributing to the city’s overall economic vitality.

  The Department of Labor and Economic Opportunity reported that Oktoberfest had a significant economic impact, attracting about 7.2 million visitors who spent €442 million on the festival grounds. Total spending on food, drinks, and rides reached €1.25 billion. Visitors from outside Munich spent €505 million on accommodations, boosting the hotel sector. Beer tents generated €300 million, with setup costs between €1-2 million, and organizers earned a 7.8% profit. The festival produced 7 million liters of beer, resulting in €75.7 million in tax revenues. The hotel and hospitality sectors gained €500 million, while stalls, bars, and rides contributed €140 million to the economy. Souvenir sales, including Lederhosen and Dirndls, added €160 million to individual trade.

Long-Term Economic Impact

  Beyond immediate economic benefits, the festival also generates long-term advantages. Oktoberfest fosters strong brand recognition and nostalgia for Germany, attracting year-round visitors and tourists, leading to revenue that stretches beyond the Oktoberfest season. This allure encourages infrastructure investments and foreign businesses, directly benefiting the German economy, promoting international collaborations, and enhancing the nation’s global presence.

Oktoberfest 2025 group shot

Willkommen (Welcome) to Oktoberfest in the U.S.

  Some of the most popular Oktoberfest celebrations in the U.S. include:

1. Oktoberfest Zinzinnati (Cincinnati, OH), September 18-21, 2025, largest with 800,000 2024 attendees.

2. The Denver Oktoberfest (Denver, CO), September 25-28, 2025, activities: keg bowling to stein hoisting, live music and more.

3. Oktoberfest La Crosse, (La Crosse, WI), September 25-28, 2025, longest running.

4. Big Bear Lake Oktoberfest (Big Bear Lake, CA), September 6- November 8, 2025, celebrating 55 years.

5. Helen Oktoberfest, (Helen, GA), September 25 – November 2, 2025.

6. Mt Angel Oktoberfest, (Mt. Angel, OR), September 11- September 14, 2025.

7. Wurst fest (New Braunfels, TX), November 7- November 16, 2025. Ten-day festival that raises over $20M for nonprofits.

8. Reading Liederkranz Oktoberfest, (Reading, PA), October 1 – October 5, 2025.

9. Schmidt’s Columbus Oktoberfest, (Columbus, OH), September 5-September 7, 2025

10. New Ulm Oktoberfest, (New Ulm, MN), October 3- October 11, 2025.

Bavaria in America

  Here are some of the most delightful Bavarian villages in America:

1.    Leavenworth, Washington: Leavenworth, set by the Cascade Mountains, has evolved from a logging town into a Bavarian-themed destination. Highlights include alpine architecture, beer halls, the Nutcracker Museum, the Christmastown Village of Lights, Oktoberfest, and year-round outdoor activities.

2. Frankenmuth, Michigan: Founded by German immigrants in 1845, Frankenmuth is known as “Michigan’s Little Bavaria.” The town hosts numerous annual festivals, including a Bavarian Easter, World Expo of Beer, and Christmas events. Don’t miss Bronner’s Christmas Wonderland, the world’s largest Christmas store.

3.   Helen, Georgia: Helen is a village in the Blue Ridge Mountains, located about 100 miles northeast of Atlanta, recognized for outdoor recreation options. The town has cobblestone streets and offers wine tasting, mini golf, a water park, and German cuisine. September and October bring visitors for Oktoberfest, while the Christkindlmarkt is held during the holiday season.

4. Fredericksburg, Texas:  Established by German settlers in the mid-1800s, Fredericksburg features architecture such as a replica of a 19th-century German church and has a local wine industry with over 100 wineries and vineyards. Located within reach of Austin and San Antonio for day trips, Fredericksburg holds more than 400 festivals and events annually, including a three-day Oktoberfest and a fall Food & Wine Fest.

5.   Vail, Colorado: Vail blends Swiss and German architecture with notable charm, making it one of the top ski destinations in the United States. Stroll cobblestone streets, enjoy Austrian-Bavarian cuisine and stay in cozy Bavarian-style lodges. 

German Heritage in the United States

  It’s fascinating to examine the geographic distribution of populations identifying with German heritage.

map of united states showing percentage of german population by state

  Ready to Roll Out the Barrel? Is your beverage business prepared to leverage Oktoberfest’s popularity and success? Here are some insights and ideas to consider.

Leverage Technology

  E-commerce and social media platforms are crucial for breweries to engage consumers and boost sales. Embrace digital media to fully exploit the Oktoberfest brand and its seasonal appeal. Think about how your business can capitalize on this by:

a.  Utilizing e-commerce platforms

b.  Engaging social media

c.  Implementing innovative digital marketing strategies

  Consider creative approaches, such as partnering with a sister city near Munich or livestreaming from events. Additionally, utilize technological tools like AI and ChatGPT to explore opportunities and gather insights.

Enhance Customer Experiences

  Consumers are eager to invest in premium, high-quality, and unique beer experiences, providing craft brewers an opportunity to distinguish themselves. How can Oktoberfest be optimally utilized to create memorable experiences for patrons? Reflect on whether your craft brewery or distillery could host events such as an Oktoberfest celebration, “A Taste of Bavaria,” or even a live beer tent with Polka dancing. Additionally, consider how to enrich the taproom experience with food pairings, engaging events, and various activities that will captivate and resonate with consumers.

Share Your Story

  Brewers focusing on regional storytelling, ingredient sourcing, and eco-friendly practices are likely to connect with today’s value-driven consumers. What compelling aspects of your unique business journey stand out? Can you collaborate with similar businesses or local events to enhance and promote your craft brew brand? This approach can help narrate your local company’s story. Emphasizing regional storytelling and sustainable practices can truly resonate with consumers seeking meaningful connections.

Diversify and Test

a.   Explore brand diversification and testing to introduce new and improved beverage options. Diversify Product Portfolios: Offer a mix of traditional and non-traditional drinks to cater to a broader range of consumer preferences.

b.   Sales of non-alcoholic beverages, both within and outside of Munich’s Oktoberfest beer tents, surged by 50% compared to the previous year.

c.   This trend aligns with significant shifts in the U.S., where consumer interest in unique flavors, as well as non-alcoholic beers and beverages, is on the rise.

d.   Invest in Non-Alcoholic and Low-Alcohol Options: Dedicate resources to research and develop high-quality, flavorful non-alcoholic and low-alcohol beverages.

  Oktoberfest can be a flagship event to capture and reinvigorate beer sales. By exploring its history, aligning your beer brand with regional and local celebrations, and tapping into Oktoberfest’s brand equity, beverage businesses can capitalize on the festival and position their business for success.

  Raj Tulshan is founder and managing partner of Loan Mantra. For more information visit www.loanmantra.com or connect with Raj at https://www.linkedin.com/in/tulshan/.

Five Bucks & a Bag of Chips

Cyndi

As We Peer Into Our Crystral Kegs & Stills Trying to Forecast the New Year, We Can’t Ignore the Trends!

crystal ball and tarot cards

By Mark Colburn

Beer, wine and spirit sales are sagging due to reduced consumption, inconsistent tariffs that threaten many aspects of our industry, wholesaler consolidation and low consumer confidence. Combining these trends means that the battle for shelf and handle space will be frenetic. The fight for the consumer’s share of stomach will be equally challenging. As a craft beer wholesaler marketing director in a major metro, I sat through hundreds of supplier business plan meetings which typically begin in October. These next year plans were filled with new products and clearly absorbed a great deal of executive supplier attention. Herein lies the chink in your competitor’s armor.

  Sitting on the opposite side of the supplier vs. distributor (I was the marketing director for one of the country’s largest craft, beer, cider, wine and spirits wholesalers) conference room table, I wondered how the fourth quarter seemed to be overlooked, or taken for granted by our large, medium and even small suppliers. Perhaps they were satisfied with the long summer’s results I mused during these marathon meetings?

  This particular large supplier was presenting in mid-September hoping to get the “attention jump” on the rest of the supplier roster. As I sat there viewing slide #68 of their PowerPoint presentation I got an idea. Keep in mind my background is in the ad agency business…

  As the one responsible for each month’s rather bulky sales plan (8-10 pages), I started looking for common denominators. It was easy. One of my brand managers even sarcastically coined his monthly supplier incentive as, “five bucks and a bag of chips.” I found that the vast majority of monthly sales incentives were alike – five dollars per Off Premise placement and slightly more for On Premise.

  The volume incentive was equally similar as was the compensation for a new tap handle placement. As a believer in the “zig vs. zag theory” I recognized a unique opportunity for a supplier that wanted to get a bit creative.

  Since it was still September I knew I had time to whip up something and get it agreed to…and funded. I also knew that Halloween had grown into a $12+ billion business. Moreover, anything to do with Halloween was fun. This seemingly obvious point is forgotten by so many businesspeople. Over my 15 years in this distributor position, I experimented with hundreds of fun incentives to assess their selling significance with a highly street smart, unionized and sizeable ON and Off Premise selling team.

  Most succeeded while a few did not. The one I’m about to share with you shattered all volume and distribution expectations and was in my top three of all time. Although this incentive may not be applicable to your situation, the point is to inject creativity and fun into your brand. Where legal, you might even fine tune my incentive into a consumer or employee event that will garner results.

The Sam Adams Haunted House

  By far the smartest executive I have ever met is Jim Koch. I first met him in Boston and later we rode together several times visiting key accounts throughout San Francisco. Mr. Koch had heard about some of my prior incentives, “Gordon Gekko’s Greed is Good,” “The Money Chamber” and “Broccolinchini” and probably thought I was thick as two short planks.

  He could not deny the results, however. After procuring the necessary budget from Boston Beer and my team, I set out to create the most fun incentive ever launched around a Halloween theme. Thus the Sam Adams Haunted House was “built.” How can this help your business? Please read on…

  In my career I’ve found that whenever “Fun” is used as a strategic denominator, the results are exponential. The Sam Adams Haunted House was created as a sales incentive “clutter buster.” The vast majority of supplier-side sales team incentives lacked even the most remote level of fun or creativity. The trend was to simply follow everyone else. The results were naturally proportional.

  To clearly differentiate the Sam Adams brand from the rest of the big, medium and small brand pack I worked with my graphic designer to create a huge haunted house graphic (see pic inset).  This graphic was brought into the Friday morning sales meeting, by yours truly, every Friday in October. If you’ve never been in a large, end-of-week, early morning sales meeting; you’re not missing much.

  These can last several hours as supplier sales reps and managers stumble their way through unrehearsed, monotonous sales presentations. Now that I’ve shared the setting, picture this: The huge sales meeting room (60+ occupants) is now dark (all lights out and curtains pulled). The huge sales team is now watching and listening, wondering what is next. Suddenly a boom box blasts sounds of howling wolves, creaking doors, chains and screaming goblins throughout the cavernous room. I enter wearing a black cloak with the scariest mask you’ve ever seen holding a flashlight under my chin. I let out a screeching howl, “Welcome to the Sam Adams Haunted House!!!” From that second on, Sam Adams owns this major metro sales team.

  To get to the Haunted House, the On and Off Premise sales teams competed weekly by making placements in their accounts. The salespeople with the most placements got a Friday morning trip to the house where they came up to the front of the room to select a scary graphic that I then flipped open (I had pre-trimmed these into little doors and marked dollar values for each that when combined kept us on budget) to reveal their winning cash prize.

  The prizes ranged from $25-$250 so there was significant interest to earn a pick every Friday in October. This kept the incentive top-of-mind throughout the salesperson’s week. To determine who picked each Friday morning I came into the office very early to run VIP reports showing individual sales rep accomplishments. After reviewing the numbers I was able to announce the weekly winners by 7am.

  Although this level of creativity (I admit it is a bit creepy but think of the audience – predominantly males aged 24-39) may not suit your personality or your brand, I must share with you that the sales volume and placement results shattered our wildest expectations.

  The incentive was so popular that I repeated it for three or four years in a row. This incentive DOMINATED all other suppliers during the month of October. Further, it created momentum and top of mind awareness within one of the largest sales teams in the country.

  This momentum carried the Sam Adams brand into the November and December holidays (supported by my “Santa Broccolinchini” incentive) where many brands concede this period opting to gear up for the New Year.

  This fourth quarter incentive tandem provided Boston Beer with sales plan DOMINANCE for 8+ weeks. Further, it put their brand on a substantial downhill roll teeing up their annual business plan meeting where the incentives and their results were the first thing that everyone spoke about in the executive meeting room.

  They really set the “fun tone” and paved the way for the coming year’s strategies and new items.  The Sam Adams Haunted House is provided to you as an example of the synergistic results achieved when creativity is mixed with a large dose of fun. I use the term, “Fun-kifize” (an old Tower of Power tune) in my podcasts and recommend such to you.

  If you don’t participate in wholesaler incentives try adjusting a version to your internal team or even at the consumer level. Perhaps a game could be played to earn trips to the haunted house to generate more consumer interest and traffic in your tap or tasting room?

  Lastly, to dot the “I’s” I learned that Jim Koch was going to pay us a visit in November. I asked his team if I could interview him for 15 minutes and videotape the session. They agreed so I taped Mr. Koch and gave him the names of the biggest achievers from the Halloween incentive. I then edited the tape and played it during one of those long, boring Friday sales meetings.

  The sales team loved hearing a luminary like Jim Koch give specific sales people “Atta boys” for their their outstanding performance. Just another example of adding legs to a creative idea to wring out even more benefit. Remember that people buy AND SELL for people and BRANDS that they like. Be THAT brand.

Happy Halloween!

About the Author

  Mark Colburn has 35 years of experience in the beverage industry working primarily with craft beer and cider brands. He is the host and creator of the pod cast, “The Shinerunner Show” http://www.thebrewingnetwork.com/shinerunner-ep18-dyno-ing-the-marketing-mix/ and author of the book, “Craft Beer Marketing & Distribution – Brace for SKUmeggedon.”

  After earning his master’s degree in marketing, Mark went into the advertising agency business then into brand management. For 15 years he was the marketing director at a large California beer, cider, wine, and spirits wholesaler where he managed a brand team, experiential events, and multiple craft brands. Currently Mark works as a consultant and is available to chat about your brand opportunities at …

shinerunner@comcast.net

https://www.linkedin.com/in/mark-colburn-8332625

Beyond the Container

Cyndi

Understanding Packaging and Its Subproducts for Modern Breweries

Earthrings showing 3 six pack carrying containers for beer cans

Photo Credit: Earthrings

By: Alyssa L. Ochs

In the modern brewery, packaging is more than just a finishing touch or an afterthought at the final stage of production. Rather, it is a vital part of a brewery’s brand strategy, a way to improve operational efficiency and a mechanism for achieving sustainability goals.

  Innovative packaging technologies help breweries grow and adapt to changing consumer demands. Settling for what used to work in the past to package beer is no longer an option for forward-thinking producers. From wrap-around case packing to shrink sleeve application, side loaders and compact palletizing,  new packaging solutions are redefining what it means to be ready for production and attract a strong consumer base.

  This article explores various aspects of brewery packaging and its subproducts, driven by real-world insights and companies that are setting new standards for aesthetics, efficiency, and sustainability.

Primary Packaging Basics: Core Components for a Strong Foundation

  Simply put, the foundation of all brewery packaging operations is the containers holding the beer. Whether you pour your beer into cans, bottles, or kegs, this is the cornerstone of your primary packaging and the basis for which all subproducts must complement.

  Cans now dominate the craft beer industry because of their logistical advantages, recyclability, and durability. For cans, many breweries have begun to embrace shrink-sleeve application technology with full-wrap, high-impact branding.

  Producers like Mother Earth Brewing (Vista, California and Nampa, Idaho) have used automated cartoners to streamline the process of erecting and packing cases and trays. Modern cartoners allow easy changeovers between 12-ounce and 16-ounce cans and help breweries keep up with growing demands.

  Meanwhile, a sizable number of breweries still favor glass bottles for specialty beers or to celebrate nostalgia and beer-drinking traditions. Packaging bottles requires careful consideration for handling and shipping weight.

  Stainless-steel kegs remain efficient vessels for on-premise distribution, events, and international export. However, PET plastic, one-way kegs are trending as a sustainable and cost-effective alternative to stainless steel because of their lightweight, compact, high-oxygen barrier advantages.

  Closures, whether in the form of cap ends, swing tops, crown caps or keg fittings, are also primary packaging products critical to maintaining freshness and the necessary pressure.

Packaging Subproducts: Behind-the-Scenes, Yet Crucial

  However, there is enormous potential in the best uses of secondary and tertiary packaging materials, also known as subproducts. These materials play essential roles in protecting and presenting beer, as well as in distribution coordination and sustainability.

  For example, combined cardboard and film packaging are hybrid materials that offer excellent visibility and strength to a packaging strategy. Shrink-wrapping helps bundle beer multipacks and pallets. There are breweries that are moving towards biodegradable films and reduced-gauge materials to improve the eco-friendly qualities of their shrink wrapping.

  Wrap-around case packing systems are high-speed systems that can limit downtime and reduce the strain on machinery. Wrap-around cases that operate in continuous motion provide a precise and fast way to create and seal boxes around beer products, thereby improving line efficiency and speeding up the packaging process.

  For example, Summit Brewery Company (St. Paul, Minnesota) has achieved virtually no downtime and no needed repairs using an InvisiPac® Tank-Free™ Hot Melt System. Graco worked with the brewery to boost production efficiency by reducing hot melt adhesive waste and stabilizing the rate of glue consumption.

  Shrink sleeve applications are popular because of their 360-degree branding opportunities. They are ideal for cans and specialty bottles, conforming to unique contours better than pressure-sensitive labels. Breweries love this trend because of the vibrant, high-impact branding that does not require pre-printed containers. Shrink sleeves enhance brewers’ branding flexibility and are ideal for seasonal brews and limited releases.

  Other essential packaging subproducts include tray packs, dividers, and side loaders. Corrugated trays and side loaders help maintain line efficiency and prevent damaged products. This is especially critical when packaging beer in glass or mixed-format packs.

  Cardboard carriers and dividers protect units and enhance their visual presentation for consumers. By combining cardboard and film packaging, a brewery can use less material than it would with traditional cartons while ensuring visibility and protection.

  Other aspects of packaging are the inks and adhesives used on beer labels. At a minimum, these materials must stay affixed to the product and be readable. However, you can use water-based inks and adhesives that are low in volatile organic compounds to tap into eco-minded consumer preferences and support your brewery’s sustainability initiatives.

Evolving Automation: Equipment Innovations for All Sizes of Breweries

  In the past, automation was only considered relevant for large, well-established breweries with extensive packaging needs. However, even smaller breweries are embracing automation because of the compact packaging systems now available.

  For instance, breweries can find compact palletizing solutions that are designed for small spaces. You don’t need a warehouse-sized space to automate your brewery with a compact palletizer.

  Breweries of all sizes can also automate their packaging with side loaders and tray packers. These investments help brewery packaging lines move at high speed and overcome labor concerns. Side loaders efficiently place cans and bottles into cartons and are often used alongside wrap-around case packers to reduce manual labor.

  Advanced machinery solutions like wrap-around case packing can streamline operations with minimal stop time. The result is faster throughput and reduced wear and tear on machinery components. Shrink sleeve applicators can accommodate various container sizes and shapes, even allowing for late-stage customization if design ideas change over time.

Brewery Packaging with Sustainability in Mind

  Eco-friendly brewing is no longer a niche — it is a requirement for modern beer producers. Breweries must weigh the pros and cons of the materials they use for beer packaging considering where they came from, how much they strained natural resources to produce and their recyclability.

  Fortunately, breweries can boost their sustainability and lower their carbon footprints in many ways. Lightweight materials, such as thinner bottles and cans, can help reduce vehicular emissions from trucks used to transport products. If you package and label your products onsite rather than outsourcing this work, you can maintain greater supply chain control and produce beer sustainably.

  Meanwhile, using recyclable and compostable beer carriers is a fantastic way to reduce landfill waste and release fewer planet-overheating gases into our environment. Film-cardboard hybrids help breweries reduce plastic waste while still being visually appealing and durable. Eco-friendly carriers perform well and can now often be recycled or degrade naturally once discarded. 

  To prioritize sustainability, breweries can also work with their packaging suppliers to develop eco-friendly formats tailored to their unique needs. Customization is now commonplace in this industry, as breweries do everything they can to stand out from the competition in a crowded marketplace.

  There are also reusable and refillable bottle and keg return programs that breweries can investigate. These types of programs are expanding throughout North America and Europe, making them legitimate options for many modern breweries. Exploring all available sustainability options can help brewers align their business with their environmental values and comply with changing legislation.

  Multiple innovative companies are now working in the sustainability space to give breweries more options.

  UniKeg offers PET plastic kegs as a lightweight, cost-effective solution to traditional steel kegs. Earthrings is a company that offers 100% recyclable and compostable beverage rings constructed from sustainable cardboard.

  Another company, WestRock, offers paper-based brewery packaging solutions, such as cartons and multipacks, to help brewers reduce their plastic use. DS Smith collaborated with Martins Brewery to develop a custom, sustainable six-pack handle packaging product for glass bottles.

  These are just a few examples of companies that have identified a need in this space among breweries and risen to the challenge to help promote sustainable beer production.

Final Thoughts and the Future of Beer Packaging

  Although brewery packaging subproducts might seem like minor factors in the overall production and sale of products, they collectively have a significant impact. Subproducts can either make or break a brewery in terms of shipping efficiency, regulatory compliance, labor demands and carbon footprint.

  Looking ahead, the craft beer industry has a lot to look forward to with regard to smart and sustainable packaging. Technology companies have made QR codes and smart labels accessible and enticing as a way to market content directly to consumers.

  There has been a trend towards even small nano- and microbreweries investing in compact and mobile canning solutions to reduce their reliance on third-party companies. With sustainability now top-of-mind for breweries worldwide, eco-design integration is increasingly important. Now, breweries must not only think about how their products are packaged but also where they will end up after they are used — ideally recycled, reused, or composted.

Expand Your Beverage Portfolio with Craft Spirits

Cyndi
craft distillery still equipment

By: Kris Bohm of Distillery Now Consulting

In today’s business climate some breweries and wineries are struggling to grow their sales. While beer and wine are not growing in sales like they were in years past, craft spirits continue to grow in market share year over year. There is a prime opportunity for your beverage business to expand your portfolio by producing distilled spirits. Many brewers and winemakers have considered the idea of a distillery but may not know where to start. The tools needed in a distillery like pumps, tanks and hoses are like the equipment found in breweries and wineries. Brewers who want to jump into making distilled spirits have most of the knowledge, tools and skills needed to manufacture great whiskey from malted barley. If you want to start making distilled spirits, we are here to help. Let’s talk about selecting the correct equipment for a brewery or winery to make delicious, distilled spirits without breaking the bank.

  Taking the dream of making distilled spirits and putting it down on paper is the first step to take.

  Take a moment and try to answer the questions below. The answers to these questions will drive your decisions.

•  Do you want to make whiskey, vodka, gin, rum, brandy or do you plan to make all of them?

•  How large is your existing equipment and what size still should be paired to match your equipment?

•  How many square feet of workspace can you dedicate to distilling?

•  What do you want your still to look like? Will it be a shiny copper showpiece or a stainless economical work horse?

  A common question that comes up early is aimed at selecting a still size. People will ask, how big of a still should I get? The answer to this question is different for nearly all operations. What is more important to consider than how big your still should be is what is too small of a still. A common issue faced by new distilleries is that they start their production with far too small of a still. Some folks start so small that they outgrow the capacity to produce enough spirits within a year.

  A still that is much smaller than 200 gallon will hinder your distillery from growing to produce a meaningful amount of spirits. The smaller a still is the larger your labor cost and time commitment will be to operate the equipment. Depending on the configuration of a still and the ABV of the wash a 200 gallon still can produce a single whiskey barrel per day by doing multiple distillations.

  Do not go too small on your still, you will regret it when you see how small the output is. The price of a still does not increase linearly based on size.  A larger still only costs slightly more than a similarly designed smaller still. The larger a still is the less you will spend on labor, and we all know that the cost of labor adds up fast.

  Taking some time to estimate necessary spirit production and sizing equipment appropriately is essential. New startups often underestimate the real quantities of spirits needing to be produced to be successful and profitable. Planning production far out is essential if you are going to distill spirits like whiskey or brandy that need to age for years before they are ready to bottle.

  Whiskies are an immensely popular type of spirit whether it is bourbon, rye whiskey or single malt. All of these spirits spend years in the barrel before they are bottled. Production planning should be based on the size of your existing equipment and how much additional capacity it has. Ideally your production of wine, wash, or beer to be distilled should not inhibit your production of the core products your business is founded on.

  Working through these numbers will help with the financial commitments created by expanding your product line up to include distilled spirits. A common rule of thumb in sizing a still is to size it to half the size of a fermenter. So, for example if you have 1000-gallon fermenters, it makes sense to have a 500 gallon still.

  It seems obvious but it is important to state that your products need to taste good. If the aged products you plan to make are going to compete like other distilled spirits, they will need time to mature. There are no proven shortcuts to speed up the process of maturation, but there are plenty of examples of self-proclaimed “rapid aged” products that flopped. It is helpful to learn from others’ mistakes here and take it into account as you plan production years into the future. If you buy a small still that can produce enough product to meet initial demand you are planning for problems when growth takes hold. A small still may not be able to make enough spirits that need to age and then meet demand several years down the road. The more spirits you can produce early on and are putting in barrels every day the more potential you have to grow.

  One of the most common mistakes distilleries make in their early years is not producing enough spirits to age. To limit the growth of your business by selecting too small of equipment can be a costly mistake. Budgeting for the cost of raw materials and labor is essential to maximize production capacity and control cost. Selecting the perfect size still or stills is a complex decision to make. There are many underlying factors that must be carefully assessed to make sure you pick the right still with confidence.

  Equipment budgets can vary immensely depending on the equipment manufacture and design. You must budget not only for the cost of the still but for the cost of installation as well. Most stills need steam lines, cooling lines and electricity which can add considerable cost to the equipment.

  A budget for other smaller equipment should also be considered. Tanks are needed for spirit storage and lab equipment is needed to measure and manage production. A consideration that cannot be ignored is the size of the facility where the equipment will be installed.

  While a still does not need too much space, there is other equipment that does take space, such as spirit storage tanks, barrels for aging spirits and bottled products.  If you only have 500 square feet of space set aside for your new distilling equipment this may be tough to make things work well. In a 500 sq foot space a 500 gallon still might fit well into your building, but it leaves no room for the still operation and people to operate the equipment. Take some time to decide how much space your distillery can occupy. This information will help you make decisions on how big of equipment to buy.

  In some cases, production goals are the primary factor when planning a distillery. If allocated space is not a limiting aspect, then production should be the next deciding element. This critical factor must be given extensive thought and planning. If you want a distillery that has the capacity to produce thousands of barrels of whiskey every year you are going to need big equipment. 

  While a 250 gallon still can be worked hard to produce over 100 barrels of whiskey a year it will not be able to make much more than that. Sizing the still for the long-term production goals of a distillery will help you stay ahead of your growing pains. If you do really want to produce thousands of barrels you may want to consider a continuous column still.

  To make great spirits you’re going to need skilled labor. For your business to make the best spirits possible from day one it is a wise investment to bring in an experienced distiller to help guide the process and oversee the distilling. Although there are many similarities in equipment and processes used by breweries and wineries that are also employed distilleries, there are also vast differences in the process and in the regulation of these industries.

  An experienced distiller can bring the knowledge and expertise to the table to help you make the best whiskeys possible and also ensure it is done in a way that is compliant with regulations. One route often taken is to hire a distillery consultant to train employees and establish operating procedures.

  The process and investment to build a brewery or winery is an expensive endeavor. Most of these facilities have idle equipment and are not run constantly. Increasing the use of your equipment to make distilled spirits can create new revenue streams. The simple addition of a still can create the opportunity to create new products and at the same time increase usage of idle equipment.

  This is good for the business as it can create greater economies of scale. To do this effectively it is paramount to select the right size still for your business. There are many opportunities to diversify your business and wineries and breweries are well positioned  to create new products and expand market share easily. If your business is ready to take the leap into distilled spirits now is the time to do it. After all, good whiskey is delicious and with the addition of a still beer can be distilled and transformed into great whiskey.

Ideas for a Successful Summer Season

Cyndi
crowd gathered in front of band performing at Short's Brewing

By: David DeLorenzo, Bar and Restaurant Insurance

Depending on what part of the country you live in, summertime can be a boon or a bust for bar and restaurant businesses. But regardless of the time of year, there are many things food and beverage establishments can do to boost sales and attract customers, new and returning. So, let the summertime vibes guide you to a successful season.

  Across the country, the restaurant industry is an economic powerhouse in any season. According to the National Restaurant Association’s 2025 State of the Restaurant Industry report, thanks to resilient consumer demand, the industry is expected to reach $1.5T in sales and employ 15.9M by the end of this year. One of the keys to success for restaurateurs is “expanding customers’ perceived sense of ‘value’ beyond pricing through hospitality and enhanced dining experiences, especially those that draw more on-premises business.”

  With that in mind, consider these tips to offer guests a unique experience with added value that will encourage them to stop in, stay awhile and return all summer long.

Create an experience: Placing a heavy emphasis on service and hospitality and presenting a welcoming environment that promotes socialization and an inviting on-premises experience is essential in boosting business. Consider your location and play to your strengths. For example, if your establishment is in the path of a farmers’ market or art walk, develop specials and promotions surrounding those events. Offer a special breakfast burrito on the morning of the farmers’ market or hire a local artist to do a live painting demo during the art walk to create memorable dining experiences for locals and visitors alike. If your establishment has a large patio and great views, offer “sunset specials” and encourage diners to arrive early to secure a great outdoor spot where they can enjoy their meal as they take in spectacular views as the sun goes down.  

Present summertime specials: Take advantage of the season and use it as an opportunity to present special menu items and beverages that are limited time only. Think light, fresh, easy bites and beverages featuring seasonal produce and fruits. Get creative with naming menu items and signature sips to help entice diners to give them a try. These menu items and beverages can be developed using ingredients your establishment already carries, so rather than reinventing the wheel, you are simply presenting a new version of a classic that takes on a seasonal twist. If your restaurant is privy to highly local or limited seasonal ingredients, this is a great way to use them to bring in business.

Get in the spirit of seasonal fun: Everyone loves a reason to celebrate, and luckily, there are plenty of opportunities to raise a glass throughout the summer. From Memorial Day to Independence Day to Labor Day, customers tend to be in “summer mode”—whether or not they are on vacation. So go with the flow and offer specials and festivities for these occasions and others. National observances such as National Fried Chicken Day (July 6), National Ice Cream Day (July 16), National Watermelon Day (Aug. 3), or National S’mores Day (Aug. 10) can also serve as inspiration for not only summertime menu items, but also for promotions to get more customers in the door.

Host special events: Summertime experiences can help bring customers in and encourage them to stay and play. For example, offering live music during happy hour and hosting trivia nights or karaoke contests are great ways to inspire your customers to spend more time in your establishment. These experiences also engage them and keep them coming back for more. All of these are positives regarding boosting your sales and creating new customer relationships. 

When in doubt, theme it out: Presenting a theme night is another smart and engaging way to reach a new or different demographic or encourage groups and parties to host an evening at your establishment. By presenting a varied calendar of theme nights, you can appeal to various demographics and interests. For example, 80s and 90s eras nights give guests a reason to gather their longtime friends and get a little nostalgic as they relive these popular decades. Host a fashion contest, offer themed food and beverage, or offer era-themed trivia. If the theme is popular and wide-ranging enough, you could reach out to other businesses in your area to create a progressive theme night in the community. This type of outreach is a vital way to network with other local companies and develop ideas and events for the good of the neighborhood—and the benefit of all.

Love your locals: High tourism seasons can be an excellent time for bars and restaurants to see peak sales. However, vacation visitors come and go, so investing in the community and local customers is essential. During low-tourism times, offer a special discount code for “locals only”—after all, everyone loves getting in on an exclusive deal that’s just for them, right? Loyalty programs are a key way to influence customers’ decisions about where to dine out. So why not create one just for the locals during slow tourism seasons to further build upon existing customer relationships and create new ones that you can continue to foster in any season?

Educate staff and customers: Even when trying to drum up business during slow seasons, it’s always important to abide by the laws—and to ensure your staff and customers do, too. This is especially true during high tourism seasons. When vacationing in another city or country, people may be more relaxed about their own moral values and the rules of the town or country in which they are visiting—particularly when alcohol is being consumed. That’s why it’s crucial to ensure staff is well-trained in detecting if a customer is already under the influence before they enter your establishment and also what to do if a customer begins to show signs of intoxication while dining. It’s crucial to ensure customers know the rules regarding things like to-go liquor, open container laws and the consequences of driving under the influence in your particular county or state.

  Whether summertime is a high-tourism season or low-tourism season for your establishment, creating memories and experiences for your diners is one of the greatest perks of being a restaurateur. Engaging with your clientele in any season is not only good for business, it’s great to building real friendships and community connections.

  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…

barandrestaurantinsurance.com

The Financial Impact of a New Administration on the Beverage Industry

Cyndi
the dollar bill with a dropping down 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.