Category: General

Craft Malt with a Conscience

Cyndi
hands holding crushed crop

By: Erik Lars Myers

Sebastian Wolfrum, the German-born owner of Durham, North Carolina’s Epiphany Malt, wants to do the right thing.

  Wolfrum’s epiphany came in 2012, while he and his wife attended a meeting for local farmers about how they could get involved with North Carolina’s burgeoning craft beer industry. The problem, however, was that at the time, there were very few options for farmers to sell the crops they might grow. North Carolina’s one malt house at the time, Asheville’s Riverbend Malting, was still nascent and small. Wolfrum, drawing on his background in brewing and malting education at Ayinger Brewing near his hometown of Munich, and his experience at Natty Greene’s Brewing Company in Greensboro, North Carolina, started Epiphany Craft Malt in 2015.

  Epiphany has a lot of disadvantages to cope with, like any other small manufacturer, primarily driven by scale. They are tiny compared to national and international malt providers like Rahr, Briess or Weyermann, and they lack the economy of scale that allows them to produce high-quality malt at competitive prices. It is a trade-off that brewers must be willing to make when using a local maltster. You will pay more for the product—in some cases a lot more—but that money goes to support the local economy, and you are potentially buying a product with more of a local “terroir” or “maltoire.” In some cases, like Epiphany, it means supporting even more than just a local economy.

  Wolfrum says that evening out the environmental impact of the business is considerably more difficult at a small scale. Large maltsters have the personnel and resources to dedicate toward reducing a carbon footprint, but a three-person operation like his must find another way.

  Enter Indigo Agriculture, a company that provides farmers financial incentives to practice regenerative agriculture—a method of farming that improves soil health, builds ecosystem biodiversity and closes the “carbon cycle.” Wolfrum was first made aware of regenerative agriculture in his Ayinger days while working on their Regional Impact Study back in 2002.

  He describes farming as having essentially three modes:  The first he considers “the old way,” what he deems “exploitative.” In short, it involves farming a piece of land until all of the available nutrients are gone and extracted, then moving on to a new plot and beginning again.

  The second he deems “contemporary” or “conventional.” It is farming land and using additives or practices that maintain soil health, allowing the farmer to continue using the same plot each year without degeneration. Those practices may involve crop rotation or artificial soil additives to maintain soil health and keep it at the base level that the farmer needs. It might also take the form of supplemental fertilizers and nitrogen additives that take energy—and thus carbon—to produce and disseminate.

  The third is regenerative, an ethos that encourages building and improving soil health, increasing water retention and biodiversity and significantly reducing carbon emissions during farming and cleansing the atmosphere of CO2. Regenerative practices include implementing crop rotation and cover crops, no-till farming, reducing fertilizer and pesticide use and increasing soil biodiversity through compost additions and well-managed livestock grazing practices—ideally, many of those tactics working together in concert.

  It’s not really reinventing the farming wheel. These practices have been around for decades or longer, but using them together is the goal. Unfortunately, a commercial farmer doesn’t always have the financial incentive to invest in natural soil additions, plant a non-harvested cover crop in a field that could generate income or take the short-term risk of not using pesticides.

  Wolfrum was put in touch with Indigo Agriculture through Dogfish Head Brewery in Rehoboth, Delaware. A chance meeting at the Brewers’ Association Craft Brewers Conference had him talking with the lead brewer at Dogfish Head’s small-batch/brewpub facility, and they found their interests aligned. Together, they worked on a project released in September 2020, Dogfish Head’s “Re-Gen-Ale, the first traceably sourced beer to address climate change.” With the help of Indigo Agriculture’s grain marketplace, Dogfish Head purchased raw regeneratively farmed wheat, hops from several local farms on the East Coat and barley from Epiphany. In doing so, they created a traceably sourced beer with a small carbon footprint. Dogfish Head also committed to purchasing carbon credits to offset the production of brewing the beer.

  When Wolfrum learned about Indigo’s regenerative programs, he immediately got in touch with his local growers. In 2020, three of Epiphany’s farm sources began working with Indigo Agriculture, farming regeneratively to provide a carbon-neutral, or even carbon negative, source of barley for Epiphany’s malting operation. It hasn’t been a difficult sell. “Talking to these farmers, no matter where they are—in eastern North Carolina or Virginia—you don’t need to explain it to them. They live it. They know that it’s not going to get easier to grow anything without some work,” he says.

  Other farms they work with provide heirloom corn and rice as well. So far, it’s a small sliver of Epiphany’s output—in 2021, the entire crop of regeneratively farmed malt is spoken for by just two of his customers—but his plans do not end there.

  Wolfrum has started to build financial incentives for farmers into his own business plan, paying more per pound of grain to incentivize his farmers to add at least one regenerative practice into their operation. As Epiphany grows, he plans to create a contract with each grower that requires them to add regenerative farming practices into their operation but also ensures that they’re compensated for doing so. “We will pay for it,” he says, “We’re going to pay a little bit more because we expect you to do the right thing.”

  He hopes that he can also convince brewery and distillery partners to do their part to reduce their carbon footprint in freight and their day-to-day operations as well.

  According to Epiphany’s Three-Year Resilience Plan, in 2020, “each pound of malt produced by Epiphany produced 0.93 lbs of CO2,” so the company bought carbon credits to offset all 421 metric tons of CO2 produced, officially making Epiphany Craft Malt a carbon-neutral craft maltster.

  Epiphany’s virtuous cycle doesn’t end at carbon credits, however. In 2020, they started working with two farmers who grow heirloom and ancient grains—both corn and rice. Wolfrum recognizes, however, that some of these grains have complicated pasts.

  The origin of the heirloom corn that Epiphany sources can be traced back to Native American tribes of Virginia, and the heirloom rice was first brought to the Americas and flourished as part of the Transatlantic Slave Trade. “If we want to help create beers that incorporate these grains,” Wolfrum says, “we have to turn our attention toward understanding the injustice at their roots.”

  Because of that, Epiphany donates a portion of the sales of each of these grains to appropriate organizations. For the corn, the American Indian Science and Engineering Society, which helps to increase the representation of Native Americans in STEM. For the rice, Epiphany donates to a local charity, the Southern Coalition for Social Justice.

  “At the moment, it’s really small scale, and we’re not a very big player,” Wolfrum says. “Could I use those couple thousand dollars we spend on [incentives, carbon credits, and donations] for something else? Sure. But you have to start somewhere. That’s my perspective. It’s not perfect, but it’s the right thing to do.”

  Learn more about Epiphany Malting, the grain and malt they offer and read their Three-Year Resilience Plan at www.epiphanymalt.com

  Learn more about Indigo Agriculture and its grain marketplace at www.indigoag.com

  Erik Lars Myers is an entrepreneur, author, professional brewer, and lover of beer. He currently works as an independent consultant in the brewing industry in Durham, NC where he strives toward innovation in fermentation through a wide variety of projects.

Best Practices: Beer Wholesaler Agreements

Cyndi
lone beer glass

By: Kary Shumway, Craft Brewery Financial Training

The wholesaler agreement can be a point of contention between breweries and wholesalers. Before any beer is delivered, the agreement must be reviewed, negotiated, and signed.

  The challenge with many agreements is that both parties want the terms to be in their favor. Breweries want options to get out of the agreement, and freedom to move their brand if the business relationship isn’t working.

  Wholesalers want the brewery to be committed to them indefinitely. From the wholesaler perspective, they invest millions or tens of millions, in infrastructure and want to be sure that brands stay on the trucks to pay for all the investment.

  Both parties want the advantage, but at a minimum, neither party wants to get taken advantage of in the agreement.

  With so much emphasis on the wholesaler agreement, what steps are you taking to ensure you get the best arrangement possible?

  Below are five steps you can take to improve your agreements, and contractual relationships.

Five Steps to a Better Agreement

1.   Seek first to understand (Basic agreement structure and terms)

2.   Know your state laws

3.   Do your research, ask questions, determine the wholesaler options

4.   Play a game you can win (Develop your own standard agreement)

5.   Self-Distribute (Enter into an agreement with yourself)

  Since we’re talking legal contracts, here is the important disclaimer: I’m not an attorney, and this is not legal advice. The guidance here should be used for informational purposes only.

Basic Agreement Structure and Terms

  As any business textbook will tell you, the primary purpose of agreement law is to enforce an agreement between parties. In this case, the parties are the wholesaler and craft brewery. For there to be an agreement, an agreement must exist, and the parties must have freely intended to be legally obligated. A breach occurs when one party breaks a big promise in the agreement.

  The requirements of a legally binding agreement are: 1) offer, 2) acceptance, 3) consideration, 4) obligations by parties, 5) competency and capacity, and 6) a written document.

  In other words, a wholesaler offers to distribute the beer of a craft brewery, and the brewery accepts. The brewery agrees to brew beer and sell it to the wholesaler. The wholesaler agrees to pay for it. The brewery is obligated to make a saleable product, and the wholesaler is obligated to sell it.

  Both brewery and wholesaler state they are competent and have the capacity to fulfill these obligations. All this is then wrapped up in a written agreement.

  The wholesaler agreement contains a variety of clauses and terms that you should understand: Trademarks, Terms of Sale, Assignment, Transfer, Ownership Changes, and Termination to name a few. A typical wholesaler agreement can be 20 pages in length and contain a dozen or more different clauses. It’s a lot to understand, but very important to do so.

  To begin, read over the agreements that you already have in place. Highlight any items that you don’t understand and start asking questions. What you don’t know can hurt you in a contract situation.

Know Your State Laws

  Thanks to the 21st amendment, we have 50 different sets of laws related to alcohol distribution. Many of those laws are difficult to understand and a giant bore to read. Get a lawyer and get a commonsense interpretation of what your state laws are. Specifically, know your rights and obligations.

  The Brewer’s Association does a nice job in summarizing the various state laws. However, the summary only scratches the surface of what you’ll need to know about the rules of engagement. Know the rules, use them to your advantage, and build them into an agreement that works best for your brewery.

  Agreements and State Laws: Agreements and state laws are often intertwined. There may be sections of the wholesaler agreement that refer to the applicable state laws. For example, ‘wholesaler or supplier may terminate this agreement in accordance with applicable state laws.’ An understanding of the state laws in combination with a working knowledge of agreement rules will give you a leg up when negotiating your wholesaler agreement.

  Lastly, there is a common assumption that the agreement really doesn’t matter that much because the state law will over-ride the agreement anyway. For instance, in a case where an agreement says one thing and the state law says another, the state law wins.

  I’m not a lawyer, but I’ve hired lawyers to deal with this issue. What I’ve found is that the question doesn’t have a clear answer. Bottom line – the agreement still matters.

Do Your Research

  When opening up new sales territories do your homework to find the best wholesaler partner. Talk to other craft breweries, talk to retail accounts (on and off premise), and of course meet with prospective wholesalers. Do your research to find your best match. There’s no point in learning about agreements and state laws if you wind up with a lousy partner.

  Many of the larger craft breweries hire consultants to conduct market research in advance of opening a new territory. The consultants talk to retailers, learn the nuances of the market, and find out who the best wholesaler is. Then they gather information and report back to the brewery with a recommendation.

  Key Questions to Ask Your Wholesaler:  You may not have the resources to hire a consultant, but you can do some leg work yourself. Below are sample questions to ask wholesalers during the research phase:

•    How do you assess opportunities for my brands at retail?

•    What is a recent example of a brand launch success?

•    What are the demographics and tourism of the market?

•    What is the pricing landscape?

•    What did you do for craft beer week?

•    Tell me about your draft line cleaning process and personnel. If line cleaning is not allowed by state law, ask what they do to ensure lines are cleaned (surveys, education) and to determine if they are cleaned (logs, vendor, and frequency of service)

  Invest the time upfront and do you research on your wholesaler options. An agreement helps define a partnership. It’s up to you to find the best wholesaler to partner with.

Play a Game You Can Win

  A wise friend once told me: “always write the agreement.” In other words, if there is an option, don’t let the other side present you with the agreement. Do it yourself.

  Writing the agreement ensures you have control over what gets included or excluded. It allows you to shape the language and create an agreement that works best for your brewery. Have your lawyer develop your own standard agreement. Talk with them about what’s important to include and what isn’t. Use your working knowledge of agreement law and state laws to shape an agreement that works.

  Use Your Leverage: When you meet with a wholesaler, simply present the document as a matter of fact: “This is our standard agreement.” They may negotiate certain points, or counter with their own standard agreement, but they might just sign what you give them.

  Many craft breweries have their own agreement these days, even the smaller guys. Craft breweries have leverage with wholesalers. If you have a brand that multiple wholesalers would like to have, they will make concessions on the terms of the agreement to ensure they get your brand.

  Recognize and understand where you have leverage and use it to your advantage. Develop your own standard agreement, include the terms you want, and insist that it is used to govern the wholesaler relationship.

Self-Distribute: Enter into an Agreement with Yourself

  Another option related to wholesaler agreements is to avoid them altogether and self-distribute your own beer. State laws will dictate whether you can do this, and what the guidelines are.

  There are many advantages of distributing your own beer: you keep the gross profit that normally goes to the wholesaler, you control where and how the brands are presented at retail, and you ensure the brands get 100% focus and attention. Despite best efforts, a wholesaler with hundreds of brands can’t possibly present your beer during every sales call. But you can.

  There are many challenges with self-distribution: increased capital costs for trucks and warehouse space, more people needed to sell and deliver the beer, and a new business model that you need to learn. Nothing wrong with learning, but it can be expensive.

  The fundamental question to ask is whether self-distribution can be profitable. To answer the question, check out the short guide on creating a financial pro forma for self-distribution. This will walk you through the steps of putting together your sales projections, expected margins, operating costs, and capital investments needed.

  Research your state distribution laws, do the financial analysis, and determine if self-distribution is the right move for your brewery.

Wrap Up

  The wholesaler agreement is important, and it’s important that you get it right. Understand the agreement terms and know the state laws. Do your research on the market and the wholesaler options. Create your own standard agreement and use your brand leverage to get the wholesaler to sign it. Lastly, explore whether a self-distribution option makes sense for your craft brewery.

  It’s up to you to find a great wholesaler partner. It’s up to you to ensure you have a good agreement that governs the relationship. Use the steps outlined here, talk to other craft breweries, and consult your attorney. A good wholesaler agreement is within your power to achieve. Now, go and get it.

For more information please visit…

https://craftbreweryfinance.com

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Lawson’s Finest Liquids: A Hophead’s Nirvana

Cyndi
lawson's finest liquids

By: Nan McCreary

In the small town of Waitsfield, Vermont, an iconic brewery looms large among visitors. It is Lawson’s Finest Liquids, producer of world-class IPAs and unique maple beers and, according to many, a benchmark for hoppy beers among the nation’s beer drinkers.

  “I’m a hophead,” owner Sean Lawson, along with his wife, Karen, told Beverage Master Magazine. “I’m a fan of hops in a big way.” This love of flavorful beers has been a driving force in Lawson’s life since he first started making homebrew as a college student at the University of Vermont. “In the beginning, I was making five gallons at a time,” Lawson said. “My friends loved it. I couldn’t make it fast enough.” 

  After graduation from college with a bachelor’s degree in environmental studies and a master’s degree in forestry, Lawson pursued a career as a scientist and outdoor educator but continued to hone his brewing skills. The art and the craft of making beer were in his genes.

  Finally, in 2008, with increasing demand for beer from his friends, Lawson and his wife, Karen, got a beer license and built a 280-square-foot nano-brewery in a shed next to their house. Lawson brewed his beer one barrel at a time, producing 31 gallons—or 10 cases of beer—all while keeping his day job. 

  “I worried that if I turned my hobby into a full-time job, it would end up being a drag, but the opposite happened,” he said. “It really sparked my passion. I loved coming up with new recipes, and I really enjoyed the whole process from start to finish. I would walk into the brewhouse and make things up as I went. I had a lot of ingredients, so I would look at what I had and say, ‘Umm, what do I want to brew today?’”

  As Lawson’s passion grew, so did his customer base. “From day one, we didn’t have enough beer to go around,” Lawson said. At the time, he was making a few maple-infused beers —this was Vermont, after all—but the core of his business was IPAs, which were flying off the shelves. In mid-2008, Lawson decided to quit his day job and make his “hobby” a full-time vocation. He expanded the brewery to a seven-barrel system, which he thought was a big leap but, in fact, still wasn’t enough to keep up with demand. 

  “The beer kept going away faster than I could make it,” Lawson told Beverage Master Magazine. “I could only do two batches a week because it was a small building, and I’d stuffed in as much equipment as I could.” 

  In the meantime, the accolades kept coming and coming and coming. In 2010, Lawson’s Finest Liquids became the smallest brewery ever to capture an award at the World Beer Cup, winning the Bronze medal with their Maple Tripple Ale in the specialty beer category, followed in 2012 by a Silver medal win and another Silver medal in 2016.  Lawson’s beers were also a big hit at the American Craft Beer Festival in Boston, the largest beer festival on the East Coast.

  “People were impressed with the quality and flavor of the beer,” Lawson said. “Skiers and tourists would come to Vermont, buy the beer and take it home and share with friends. ‘You gotta try this beer,’ they’d say.  There was a lot of ‘word of mouth’ success for our products.”

  All along, Lawson’s goal was to “produce beer of the highest quality with outstanding freshness.” Lawson strongly felt that to retain that freshness, the beer needed to be kept cold during the entire journey from the brewery to the customer.

  “When I started in 2008, it was a challenge to get the local distributor to keep it cool in the warehouse,” Lawson said. “But once the brand caught on, I made it a prerequisite: keep it cold in the warehouse, on the truck and while on display at the retailer.”

  Lawson’s persistence paid off. His “home run” beer was Double Sunshine, a double IPA packed with juicy, lush fruit character and herbal aromas with an 8% ABV. With the increased capacity of the seven-barrel brewery, this beer—and other specialty Lawson’s Finest Liquids—created a sensation in Vermont and throughout the Northeast, such a sensation that demand continued to get further ahead of supply. Clearly, Lawson needed to produce more beer. “I read about a brewery in Stratford, Connecticut—Two Roads Brewing Company—that offered contract services, so I decided to consider this option as a way to expand without investing in more equipment or employees,” he said. 

  From the beginning, Lawson was very particular about his requirements. His reputation was on the line, and he was adamant that this beer meet his and his fan’s expectations. “The first thing I wanted to know was if the chemistry of their water would meet my standards for making quality mash,” Lawson said. “As it turned out, the water they used for brewing was nearly identical to what we used in Vermont.”

  Lawson also wanted to differentiate this beer from what he brewed in Vermont, so he created Sip of Sunshine, inspired by Double Sunshine but lighter in color and easier on the palate, and still at 8% ABV. Expecting some trial and error in creating a new brew, everyone was surprised—and delighted—that the first two batches were hugely successful. They hadn’t even packaged the beer yet, so they sold it on draft. “It took off from day one,” Lawson said.

  Over the next three years, inspired by the continuing popularity of his beers, Lawson increased production at Two Roads, with its 100-barrel capacity, while making specialty beer at his brewery at home. He also began expanding his footprint with distribution in Vermont and Connecticut and eventually to Massachusetts, Pennsylvania, Maine, New Hampshire, New York, Rhode Island and New Jersey. Sales skyrocketed, and, ultimately, the Lawsons were able to realize the culmination of their original business plan: To build a large production facility of their own and have a taproom where they could welcome the public. In 2018, that “dream” became a reality when the Lawsons opened their 40-barrel facility and timber-framed taproom in Waitsfield, located in the heart of Vermont’s Mad River Valley. The taproom is open year-round and features 10 to 12 beers on tap, as well as a food program with an emphasis on local fare. Lawson’s Finest boasts 41 full-time and 17 part-time employees. That’s a far cry from the mom-and-pop operation that began in an outbuilding on their property.

  Today, after a 20-plus year journey, Lawson’s Finest Liquids is recognized as one of the best breweries in the Northeast, especially among hopheads. The brewery produces dozens of beers, some year-round and others as special releases. Year-round beers include the flagship Sip of Sunshine; the Super Session series, brewed with the same malt base and specialty malts but each brewed with a different single-hop variety; and Little Sip, a cousin to Sip of Sunshine but with 6% ABV. Sip of Sunshine and the rotating Super Session series are brewed at Two Roads, and the rest at the Waitsfield Brewery. Lawson keeps one barrel in his brewhouse for experimenting with new flavors. If he likes the beer, he will create small-batch productions on his original seven-barrel brewery. “We’re always looking for new flavors,” he said.  “That’s where we have our fun. These are specialty beers that are only available in the taproom.”

  While Lawson’s Finest Liquids has enjoyed phenomenal success, Sean and Karen have not forgotten one of the core values that inspired their journey—to give back to the local community and communities where they do business. “Even when we were very small, we’d give a portion of our proceeds to non-profit organizations here in the Mad River Valley or Central Vermont,” said Lawson. 

  Today, this mission is organized under their Social Impact Program. The SIP includes six initiatives that support healthy communities, food and economic securities, natural resource protection and sustainable recreation in the Green Mountains. One of these initiatives is a “no-tipping” policy that offers a living wage and generous benefits to all employees. In lieu of tips in the taproom, Lawson’s Finest Liquids invites guests to donate to the Sunshine Fund, the heart of SIP. 

  “It has been wildly successful, way beyond our dreams,” Lawson said. “In the first year, we raised over $380,000. Even with COVID, donations continued with our drive-thru retail store. From October 2018 to present, we have raised over $575,000 just through the Sunshine Fund.”

  In 2020, the Lawsons received the Outstanding Vermont Business award in recognition of the brewery’s employment growth, success in the marketplace, company expansion and community involvement. The award is sponsored by the Vermont Chamber of Commerce and Vermont Business Magazine.

  As Lawson looks to the future, he said the plan is to “grow the business to thrive and not to sell.”  They hope to accomplish this by optimizing capacity and continuing the use of Two Roads to produce their flagship beers and Waitsfield for specialty releases. While they continue to increase points of distribution within the Northeast, there are no new market expansions planned in the near term. In the meantime, Lawson remains modest in his attitude toward his achievements.

  “A lot of people make great beer,” he told Beverage Master Magazine. “Why have I been successful compared to others? Maybe a sprinkle of magic.” That, and creating a nirvana for hopheads.

For more information on Lawson’s Finest Liquids, visit their website at www.lawsonsfinest.com

Exploring the Variety of Spirit-Based Canned Cocktails

Cyndi
4 assorted can cocktails

By: Becky Garrison

Over Memorial Day 2014, Bronya Shillo launched the Fishers Island Lemonade, a signature cocktail that originated at her family’s bar, The Pequot Inn, on Fishers Island, New York.  She refined their decades-old recipe and canned the premium distilled vodka, whiskey, lemon and honey cocktail. The drink is one of the first craft cocktails in a can, making Shillo and her brand a leader in the ready-to-drink market. Fast forward to 2021, and she’s expanded her portfolio to a full family of vodka and whiskey lemonade canned cocktails, as well as a fun and innovative frozen Fishers Island Lemonade spirit popsicle.

  Convenience remains the most touted selling point in the growing RTD market. According to Nielsen IQ, in 2019, annual sales in this segment were up 574%, and malt-based cocktails now account for $4.7 million in annual sales. Spirit and wine-based RTD cocktails are generally available in smaller packages; they’re also more established and generate larger sales—$62 million and $83 million in annual sales, respectively, according to the May 21, 2019, Nielsen IQ. One factor that may be influencing some of these sales from growing even higher is that in con-trol states such as Oregon, spirit-based cocktails can only be found in liquor stores instead of grocery stores in non-control states.

  In 2020, consumers in lockdown sought ways to savor their favorite spirit-based cocktails once enjoyed at a bar or restaurant. Establishments responded to this demand by offering cocktails-to-go. Depending upon state laws, these to-go packages contain all the ingredients needed to make a given establishment’s signature drinks or all the items sans the alcohol.

  This to-go trend looks to continue as the world opens up post-COVID, with customers looking for convenient ways to consume their favorite cocktails while on the go. Molly Troupe, Master Distiller for Portland-based Freeland Spirits, speaks to the appeal of canned cocktails. “Canned cocktails are great for those who like convenience and don’t want to make their own cocktails at home. Cans can go much easier than a bottle to the lake, on a hike or wherever adventure may take you.”

Carbonated Canned Cocktails

  The majority of spirit-based cocktails appear to be carbonated and designed for easy sipping with a low ABV. Ali Joseph, co-owner of Portland, Oregon’s Wild Roots, commented about their 2021 foray into the RTD market. “We always recommend simple two-ingredient cocktails to our fans and wanted to take that idea one step further. There’s nothing easier than cracking open a can.”

  According to Tuan Lee and Hope Ewing, co-founders of Los Angeles-based Vernet, they launched their line of sparkling craft cocktails when they observed the market was dominated by bulk spirits made with flavoring agents. Ewing said, “We really wanted to make something high-quality that we would drink ourselves. Tuan’s dream was to share his love for LA’s immigrant cultures through food and drink, and ready-to-drink cocktails felt like a great vehicle for this. We wanted to package in cans for convenience—being pool-friendly, beach-friendly and lightweight —and because aluminum is the most recyclable packaging around.” She added that their goals in producing these products were twofold. “We wanted to showcase the awesomeness of LA’s immigrant food cultures by using ingredients we loved from local farms and markets and to make something as complex and high-quality as I was used to making in craft cocktail bars.”

  Canned vodka cocktails like those produced by Wild Roots differentiate themselves by using natural ingredients instead of “natural” flavorings often found in canned vodka products. Wild Roots’ canned cocktails are made using their top-selling raspberry, blackberry/marionberry and peach spirits. They also added lemon to the lineup because they often use citrus in their Wild Roots cocktails. Spiritfruit is a ready-to-drink canned vodka soda made using all-natural ingredients, a splash of real fruit and five-times distilled corn-based vodka.

Gin & Tonic Canned Cocktails

  In the spirit-based RTD market, taste and innovation are already proving to be key market differentiators. Take, for example, the different ways three distillers produced a canned classic gin & tonic.

  Melissa and Lee Katrincic, co-founders and co-owners of Durham Distillery in Durham, North Carolina, launched their Conniption canned cocktails in 2018 and were among the first distilleries in the U.S. to add them.

  “We saw the increasing popularity of malt-based seltzers and with them mimicking cocktail flavors and/or names. We wanted to bring authentic, delicious spirits based cocktails in the convenience of a can,” Melissa Katrincic said. They chose rosé spritz, cucumber & vodka and gin & tonic because they found that these seasonable flavors are perfect for the warmer months in the southeast United States. Their gin & tonic emerged as the fan favorite.

  Durham’s canned cocktails must be prepared in large batches of approximately 5,000 cocktails. This process involves ensuring that the precise amount of ingredients are measured and pumped into their 450-gallon tanks, then mixed and carbonated. They have an automated canning line for getting the product into containers, whereas their spirits are hand bottled. The canning line is made of hundreds of working parts that are finely tuned but can sometimes be problematic if out of adjustment. Carbonated products can also be prone to “misbehaving,” leading to the final product being foamy or difficult to get into the cans at the right volume.

  Freeland Spirits added canned cocktails to their lineup following the success of the kegged ver-sion of their Gin and Rose Tonic, which they offered in their tasting room. They launched their canned version in 2019, followed in 2020 with the French 75. The latter is a collaboration made using women winemakers and distillers and features Freeland Gin, Chehalem Chardonnay, lemon and simple syrup.

  According to Troupe: “While canned cocktails add an additional step to spirits production, play-ing with carbonation levels and different cocktail ingredients is a lot of fun.” Also, stability is a more significant issue because these canned cocktails are lower-proof than their bottled spirits.

  As the makers of Aria Portland Dry Gin, Martin Ryan Distilling Company in Portland, Oregon, is known as a gin house. So rather than develop another product in a different spirit category, a G&T seemed like a natural extension of the Aria Portland Dry gin brand. Ryan Csansky used his background in the bar and restaurant industry to create an in-house tonic using a proprietary blend of lime, bergamot and lemongrass, hints of allspice, orris and star anise, a flavorful tonic that complements the classic London Dry style of Aria Gin. The result is a G&T canned cocktail made using all ingredients with chemicals or artificial sweeteners and one of the lowest sugar counts of any tonic on the market. Since a canning line is an expensive system to purchase, they work with a mobile canning company that brings their system and operating crew to them as needed.

Other Non-Carbonated Bartender Inspired Cocktails

  Drnxmyth, a collective of drink makers with a shared interest in bringing fresh craft cocktails to people everywhere, invented an ingenious bottling technology that, in their estimation, unlocks the freshest cocktails ever produced. Each drink created is a collaboration between them and a bartender, drink maker or drinksmith, who shares in the sales profits for this particular drink.

  The TTB licensed Drnxmyth’s factory to handle bulk spirits and fresh cold press juicing, batch-ing and filling. A patent-pending bottle separates the spirits from the fresh ingredients, since al-cohol alters the sensorial nature of juice and freshness over time. Then the drinks are pressurized at 85,000 psi, which brings the microbial count in the juice close to zero. After that process, the beverage will remain fresh for five months while refrigerated and unopened.

  Through his work in the music festival industry, Neal Cohen, co-founder of Atlanta-based Tip-Top Proper, saw demand growing for quality cocktails, though in his assessment, the category had yet to deliver the quality and convenience for classic, spirit-forward, non-carbonated cock-tails in high volumes. “We fantasized about creating a world-class cocktail in an easy-to-serve vessel, thinking maybe we could help solve a problem for venues, events, restaurants, bars, air-planes and regular folks at home on the couch. Eventually, we stopped fantasizing and started actually doing it,” Cohen said.

With that mindset, Tip Top Proper was founded in 2018, focusing first on the trifecta of bitters-forward, stirred, high-proof cocktails—Old Fashioned, Manhattan and Negroni. Next, they gravi-tated toward a “Shaken Line”—Margarita, Daiquiri and Bee’s Knees—all cocktails that allow for warm weather, outdoor consumption. Their products come in 100ml sizes, which Cohen said is the appropriate single-serve size for a cocktail.

  In 2016, The Perfect Cocktail began offering classic cocktails—Old Fashioned, Manhattan and Negroni—packaged in mini bags. Their “made in Italy” production process and functional and sustainable packaging are patented to ensure the best mix of convenience and flexibility.

  Alley 6 Craft Distilling in Healdsburg, California, first came out with their canned Old Fash-ioned in 2019 in response to consumer demand for a portable version of the drink made in their tasting room using rye whiskey or apple brandy and candy cap (mushroom) bitters. A bottle didn’t seem to fit their purposes when compared to a canned cocktail that could be enjoyed while on the go, traveling or adventuring.

  Oregon-based 503 Distilling offers their canned Mt. Hood Old Fashioned, a blend of their rye whiskey, hazelnut bitters and maple syrup. This canned cocktail follows their first release, the Wicked Mule, along with other offerings—Blood Orange Greyhound, La Vida Mocha, Five-O-Tea and Huckleberry Lemonade.

  For a Brazilian twist on the Old Fashioned, Novo Fogo is launching a Brazilian Old Fashioned Highball hybrid that features tropical flavors of orange and vanilla. Their initial foray into the canned cocktail market was their Sparkling Caipirinha, a canned version of Brazil’s national cocktail available in three flavors found across the Brazilian food and drink spectrum—lime, passion fruit and mango.

  Finally, for consumers looking to savor a hot, after-dinner hard coffee that’s easy to make, Cask and Kettle produces small-batch hard coffees in flavors such as Irish, Mint Patty, Hot Blonde or Mexican Coffee, and a Spiked Cider in a k-pod. The k-pods, packaged and distilled by Temper-ance Distilling in Temperance, Michigan, contain liquid distilled spirits, concentrated coffee and flavorings, and can be placed into any pod home brewing system or poured into hot or iced water.

Just Add Honey: The NEW Buzz Worthy Ingredient!

Cyndi
apple cocktail on glas

By: Hanifa Sekandi 

You may have heard about the Bee’s Knees honey-infused prohibition-era cocktail. Perhaps it is your go-to drink on a warm summer night. This drink is a refreshing blend of gin, lemon juice and a touch of honey, a guilt-free beverage to indulge in. It was crafted by Australian-born bar-tender Frank Meier in the 1920s, who simply elevated a Gin Sour by replacing simple syrup with honey. One hundred years later, it’s still a buzz-worthy beverage, with an ingredient favored due to its anti-inflammatory and antimicrobial properties. Honey is also considered a healthier sweet alternative to refined sugar since it consists of trace minerals and vitamins. It can still be high in calories, but it’s a better option than high-fructose corn syrup and sugar.  

Why is Honey all the Buzz? 

  The term Bee’s Knees means “the best” or “outstanding,” and honey does more than add a little sweetness to your life. Although one might not liken a few cocktails to health and well-being, honey has become a star ingredient for nouveau bottled and canned beverages that appeal to the health-conscious consumer, and a cocktail isn’t the exception.  

  A question that may come to mind is, why honey? Honey, liquid gold, has been an important component in alcohol that predates the prohibition era. Mead, known as the “drink of the Gods,” is a fermented alcoholic beverage made with golden honey, bacterial culture or yeast, and water. This ancient honey wine found in Africa, Asia and Europe has a long lifeline dating approximately 4,000 years. Fast forward to the 21st century, and honey is not just a royal sweetener with great health properties. It’s an ingredient that makes one brand stand out from the rest. 

  Once touted as your grandmother’s therapeutic cure-all for staving off a cold or sore throat during winter months, as health becomes a primary concern for consumers, honey has become a coveted and cherished ingredient due to its undisputed benefits. As the negative impacts of refined sugar consumption become clear, the alcoholic beverage industry turns to alternatives like honey, which add a sweet touch while being much better for the body. 

Sipping Guilt-Free Cocktails  

  Since refined sugar is a frowned-upon ingredient, brands that do not pivot with the health-conscious consumer will find themselves left behind in a market that calls for change where curation, sourcing and production is concerned. Yes, having a few libations with friends during a funfilled cottage weekend is the norm, but ingredients matter. As more people take the time to read the label, what’s in a premixed cocktail will not be overlooked simply because it tastes good.  

  For individuals who see fitness as a lifestyle, finding alcoholic beverages that support this ethos is a top priority. Wellness websites often list low-calorie and reduced-sugar canned cocktails without artificial sweeteners or chemicals that can diminish a health-conscious nutrition plan. Most people look for caloric content first and then what ingredients are used to provide flavoring and added sweetness. This higher standard from consumers has brands leaning towards natural ingredients and moving away from artificial flavorings, sweeteners and additives.  

  A la carte specialized cocktails are now accessible at the consumer level. Access to simplified, clean versions created by top bartenders and mixologists can be found at your local liquor store or delivered to your doorstep. Feeling a little bit better about decisions where imbibing is con-cerned has gained strong support via social media initiatives and marketing campaigns by brands who aim to shake up the industry. Once the new kid on the block, premixed drinks made with honey, natural sweetener or real fruit are now taking center stage.  

  Honey-infused cocktails are the gateway to what is next on the horizon for “fun nutrition.” Although honey is a rockstar ingredient, it doesn’t lend itself to every cocktail due to its rich flavor profile. Unlike refined sugar or corn syrup, it is more than just sweet. Brands that plan to join this new wave will have to experiment with other sweet alternatives to hit the mark.  

Maple Syrup and Monk Fruit Are Making Things A Little Sweeter  

  It turns out maple syrup is just as good in a cocktail as it is on a warm, delicious stack of pancakes. You may have heard of or tried maple syrup-infused still and sparkling water. If you add a little gin, some lime and ice, it’s a drink worth singing about. (You can thank us later for this DIY cocktail.) There are numerous cocktails made to order with maple syrup, drinks you can make right at home. Beverage companies looking to pivot will most likely take a few of your favorites and turn them into simple, clean, ready-to-drink cocktails. For example, an Apple Sour is just as simple to make as the Bee’s Knees cocktail if you have Calvados, lemon juice and maple syrup. Another easy-to-make cocktail that marries well with this decadent sweetener is an Old Fashioned.  

  Monk fruit, also known as Luo Han Guo, a natural sweetener originating from Southeast Asia, is a new replacement for stevia in protein powders, meal replacement and energy drinks. It’s de-rived from dried monk fruits. Monk fruit extract is ideal for individuals on a low sugar or carbo-hydrate diet since it contains zero sugar or carbohydrates. It boasts antioxidant and anti-inflammatory properties. This ancient fruit, harvested and cultivated by monks in the 13th centu-ry and first used for traditional herbal medicine, can be found in beverages such as the Slightly Mighty, a low carb 95 calorie beer infused with monk fruit.   

Leveling Up – Health Conscious Imbibing  

  Whether it is honey, maple syrup or monk fruit, there are better options to sweeten alcoholic beverages. What will determine the success of a health-conscious beverage is for producers not simply to replace refined sugar but craft drinks that complement this alternative. Alternative sweeteners come with nuances that may either create the perfect blend or overpower other ingre-dients. Some people have described the aftertaste of Monk fruit as bitter, and honey is derived from many sources: manuka, wildflower, buckwheat and sourwood, to name a few. The flavor profile and depth of sweetness vary with each. The same can be said of maple syrup, which can have a rich, robust caramel or honey-like fruity taste.  

  These are not the only natural sweeteners that consumers will find in their canned cocktails. Agave nectar, molasses, coconut sugar and even dates will be infused into the next wave of clean canned alcoholic beverages. Date syrup is already shining bright as a deep and rich sugar re-placement in cocktails. Not only is this tropical fruit a great source of fiber, vitamins, minerals and antioxidants, but it also scores lower than honey and maple syrup on the glycemic index. 

  Some brands take it a step further and clearly label the ingredients on the front of the can so con-sumers won’t miss it. Although refined and simplified ingredients are making headway, it re-mains a niche market against headlining brands that hold a loyal consumer base despite un-healthy additives or sweeteners.  

  With that said, simplicity lends itself to cocktail making, allowing mixologists to move away from fancy frills or adding too much in favor of a little less. The best drink served doesn’t have to be the loudest in the room, but it certainly could use a little honey.   

African Craft Brewing & the Pandemic

Cyndi
man brewing drink

By: Calvin Obbaatt  

The negative impact of coronavirus has been felt globally in all sectors of the economy, resulting in a worldwide production deficit. With consumers being unable to access products, large and small companies have been forced to stop production or produce less than usual. Companies in the hospitality sector have suffered a major blow as pandemic regulations have caused many businesses to shut down completely. Among the companies significantly impacted is the brewing industry, specifically craft brewery. 

  Initially, craft breweries enjoyed massive sales that yielded millions of profits in Africa alone. The industry also employed a vast staff, and production was increasing day-in and day-out. Compared to their competitors, craft breweries stood out for producing unique products that suited customer demands. In Africa, craft breweries thrived, and craft beer was some of the most consumed beer. Nearly all pubs, restaurants and bars sold craft beer. These products became more popular with the introduction of cheaper and smaller packages that are accessible and cost-friendly. 

  Unfortunately, with the emergence of the coronavirus pandemic, millions of breweries in  

Africa were directed by different governments to stop on-site consumption of beer completely. The taprooms that had become popular drinking places and earned the breweries massive income were shut down for hosting large amounts of people. Consumers were instructed to stay at home and avoid any public places. Similarly, parties and public events were also shut down. Clearly, parties and events were significant markets for the breweries. Bars, significant purchasers of beer products, were closed indefinitely, causing beer sales to drop significantly. This, in turn, caused breweries to take tough measures that impacted that production greatly. Many brewery workers were laid off, a move that increased the workload of the remaining staff. 

  The breweries were also forced to adopt creative but expensive delivery services. The companies adopted a pick-up and delivery system whereby the drinks were transported to each individual who ordered. The idea proved costly to the producers as they had to incur transportation costs as well. Additionally, the producer was forced to use glass and aluminium packages for all the products distributed by these criteria. In other countries with strict measures, breweries were required to produce hand sanitizers to accompany their products. 

  Restricted consumption of brewery products has led to the expiry of billions of kegs of beer on the African continent. This loss will be directly felt by the breweries as bars and restaurants purchase the products on loan and only pay after the sale. The loss of millions is likely to see some bars close completely. These closures mean that breweries lose potential customers as well as the money owed from the bars’ debts to them. 

  Breweries also face challenges of inadequate carbon dioxide since the production of CO2 has also been affected by the pandemic. The inefficient quantity of CO2 is likely to stop beer production due to the lack of a carbonator. The low availability of carbon dioxide has shot its prices to levels quite uneconomical to producers. Additionally, the small amounts of highly-priced carbon dioxide available are highly sought by multiple organizations and industries that are in a constant scramble for the commodity. According to a recent survey carried out by EABL, 60% of breweries in Africa have wholly stopped production, and only the large companies are still producing. These large companies, such as the East African Breweries Ltd (EABL)., have suffered a significant loss in enforcing the measures advised on by the experts to contain the pandemic. These measures will cause the company to lose $86.4 million in net earnings. Accompanied by other issues from the pandemic, EABL will lose at least 25% of its annual revenues: 28.7 million dollars. 

  EABL is based in the Eastern part of Africa and operates in the four countries of the East African Community. Countries within this trade block, such as Kenya, Uganda and Rwanda, imposed some of the strictest laws to stop the spread of the pandemic. Meanwhile, neighbouring countries like Tanzania, Burundi and South Sudan were reluctant to impose COVID-19 restrictions. The reluctant countries blamed the pandemic for imposing an economic tragedy, a road that they were unwilling to walk down. 

  According to Paul Mwai, CEO of EABL in Kenya, the pandemic was not only felt by the breweries but also in all sectors of the economy, including manufacturing, hotels and catering. The brewery further reported a worse decrease as the situation was not getting better. Workers, who were the major consumers of beer products, had lost their jobs and thus income due to layoffs, business closures and job losses.  

  The pandemic has led to shareholders pulling back their resources when it comes to investing in the company. Most Boards of Directors advised their shareholders and the public that company profit will decrease significantly from the previous year when breweries recorded massive profits after taxation. Previously, EABL faced the problem of high taxation that increased after every financial year. The trend is worrying to the EABL Board of Directors, as the government – specifically the Kenyan government – has imposed hefty taxes on bottled beer brands. 

  The company’s woes were further castigated by the government when an excise tax of 5.2% was introduced on beer and a resounding 15% on spirits, making these drinks unaffordable to many consumers. A similar situation was felt in Uganda when the government banned spirits from being sold in plastic containers. The Ugandan government’s ban on plastic reduced the growth and sales of spirits. 

  The majority of breweries in Africa are internationally owned, predominantly by European and American entities. Travel bans imposed by the African countries have made it difficult for international owners to access these institutions. For instance, the EABL is owned by British Diageo, accounting for 50.03% of the shares. The restrictions and the inevitable losses predicted have made the Board of Directors rethink their judgment and resort to returning the shareholders’ investments in the form of dividends. The pandemic has put the companies in a situation that demands high capital investments that will enable them to pull through during the unfortunate events. The financial pressure is mostly felt by the shareholders who are in the tightest position on whether to invest more and risk in order to salvage the situation or withdraw entirely and wait for better seasons. 

  Major stakeholders, such as the banking industry, have also withdrawn any lending activity as advised by the central banks globally. The European Central Bank has also advised against paying dividends to shareholders. 

  The coronavirus pandemic has led to the loss of lives of some of the best brains in the breweries. With labor and expertise being a major driving force in the success of any economic sector, the impact of the loss is felt heavily. Breweries depend widely on human labor. Loss of this labor will be felt long-term as replacing some of these workers will not be a walk in the park. Training a new individual will take time and money. For instance, EABL had some of its technical staff trained efficiently in the developed countries, and these people have been a significant asset for the company. The death of such experts minimizes the production potential of the company to extraordinary lengths. 

  Currently, most organizations have adopted medical policies to cater to the welfare of their staff, a way of promoting the efficacy of workers. However, with the rise of the pandemic, the brewing industry has incurred considerable expenses in staff treatment. With the disease tending to attack people through contact, many people within a single organisation will likely get infected within a span of one week. The companies, at this point, will have no option but to provide for the entire sick staff as stipulated within their agreement. Such a move is likely to render the organisation bankrupt and incur huge losses. 

The situation is likely to worsen if the pandemic persists as the government is relentless in reducing the pandemic through control measures. However, hopefully, scientists will overcome the situation and produce a viable vaccine, getting the brewing industry back in business and thriving once again. 

Black Bourbon Society

Cyndi
customers bourbon taste test

By: Nan McCreary

In an age when multiculturism is redefining America, it has become clear to many in the alcohol industry that, while African Americans are one of the leading consumers of premium liquors, distillers are late to the party when it comes to marketing to this demographic. And it costs them a sizable chunk of what researchers, such as the Nielson Company, say is the $1.2 trillion buying power of Black American consumers.

  One person who has observed this is entrepreneur Samara Davis, who, in 2016, founded the Black Bourbon Society to bridge the gap between the spirits industry and African American bourbon enthusiasts. 

  “At the time, I was producing some events with an agency in San Francisco and realized that a lot of marketing for events, especially in the spirits industry, were not necessarily catering to consumers of color,” Davis told Beverage Master Magazine.

  “I decided to create a group that represented a diverse audience and shows the brands what a diverse audience looked like. My idea was to produce events for this audience in partnership with the brands so both would benefit.”

  Today, after five short years, BBS has over 22,000 members worldwide who share their love of bourbon through social media platforms, brand-partnered events and exclusive excursions to distilleries.

  For Davis, bourbon was the natural choice for a connection with the spirits trade. “That’s what I was drinking at the time,” she said. “I love the bourbon industry. It’s so unique. It’s ‘America’s native spirit.’ It’s what we’re known for.” 

  To Davis, the logical way to make that connection was social media. “I was producing bourbon-related events in Oakland and building a following through email, and then I had a chance to move to Atlanta. I developed a new following here, so instead of doing double duty in the two cities, I set up a Facebook page to connect everyone.” 

  According to Davis, the page exploded. Friends invited friends, and their friends invited their friends. Today, the page boasts a dynamic membership that shares weekly online tastings, happy hours, educational seminars and a growing community of friendships.

  One key to the success of BBS is the partnership with bourbon distillers that Davis has created to bring the two groups together. “By working with brands, we provide genuine connections for them to engage with Black consumers and, at the same time, cultivate and educate our community,” she said.

  In the past, BBS has partnered with brands including Maker’s Mark, Four Roses, Heaven Hill and Jim Beam, to name a few. Brands actively participate with BBS to plan events, send brand reps or multicultural experts to cities for local programs and, in the case of national events, provide people from national leadership to help create exclusive programs. “We work hand in hand to cultivate audiences so they can experience the brand’s portfolio and expression of their products in a unique way,” Davis said.

  Recently, the BBS held a Valentine’s Day pairing dinner at the Atlanta Intercontinental Hotel in cooperation with Woodford Reserve to feature the distillery’s Double Oaked Bourbon. The evening, the BBS’s first in-person event since the pandemic, was fashioned as a “date night” featuring a five-course pairing dinner, with each couple having their own table and even a cocktail kit where attendees could create their own concoction. “This was just one of the many examples of events we’ve had,” Davis said. “It was really well-received.”

  BBS offers a premium membership that includes access to enriched content on the Facebook page, discounts on events and trips and an invitation to the BBS signature event, the annual Bourbon Boule Labor Day weekend gathering in New Orleans. Membership is not limited to African Americans: It is open to all bourbon lovers who actively and enthusiastically support the cause of improving diversity within the spirits industry. BBS recruits volunteer brand ambassadors in select cities to help with networking events in the local market and engage members on social media. With Covid-19 restrictions easing, Davis anticipates that BBS will be hosting more live events, always following recommended safety protocols.

  “We have to be smart about it,” Davis told Beverage Master Magazine. “We can’t do everything we used to do five years ago. We have to keep it safe, which makes it more challenging, but I’m so happy to see some degree of normalcy returning.”

  Besides connecting Black bourbon consumers with spirits producers, BBS has created a nonprofit, Diversity Distilled, to help promote diversity and inclusion policies within corporations across the spirits industry. “Companies are very eager to work toward diversity,” Davis said. “They just don’t know how to go about it.”

  Diversity Distilled assists brands in recruiting and retaining a diverse workforce and creating inroads for employees to advance to leadership levels within the company. “This is where real change happens,” Davis said. “You have to change the corporate culture and mission.” 

  With her marketing skills as well as her contacts and knowledge of the spirits industry, Davis is a crucial player in fulfilling Diversity Distilled’s objectives, offering consulting, job placement assistance, training workshops, public speaking, and industry research.

  This year, to support Diversity Distilled, BBS created #TheBlackManhattan Project, a month-long hashtag campaign to raise awareness of Diversity Distilled and its objectives. The campaign, spotlighting the Black Manhattan, was launched during February for Black History Month in partnership with Mitcher’s Distillery and Branca USA, who committed $20,000 to the Diversity Distilled job placement program.

  The Black Manhattan Project challenged members to make Manhattans or variations with Mitcher’s rye or bourbon and Branca amaro products, which, as Davis said, “was a marriage of two brands to make the perfect cocktail.” The event featured a professional bartending competition highlighting African American bartenders, a series of virtual masterclasses and a virtual tour of the Michter’s Distillery. Winners of the bartender competition received cash prizes. BBS members also had an opportunity to make their own renditions of a Manhattan and show off their DIY cocktail skills during the BBS-tenders Showcase. The rounds of the competition are available on YouTube via the BBS Facebook page.

  To Davis, BBS is a win-win for everyone involved. “Brands have the opportunity to reach out to an untapped audience and are learning how to appropriately connect with consumers of color in a genuine manner without pandering,” she said. “At the same time, consumers are receiving one-on-one attention and one-on-one experiences that enable them to learn, love and develop loyalty in a way that resonates more deeply.”

  As Davis looks to the future, she hopes to expand her community of African American bourbon consumers and reach them through more online conversations with master distillers, distillery owners and brand ambassadors who will tell their stories and offer tastings. Regular features like Friday Happy Hours, Teachable Tidbits and Whisky Weekly have been big draws on the BBS Facebook page during the pandemic. These events continually attract hundreds of consumers who want to further develop their appreciation of bourbon and share fellowship with others. The biggest challenge, Davis said, is keeping up with the demand for new events and finding new and creative ways to push brand messaging so that one doesn’t sound just like the other. Davis, along with her husband and business partner, Armond Davis, and a small cadre of human relations personnel, is also going into “full action” with Diversity Distilled. 

  “We had a serious racial reckoning last year,” Davis told Beverage Master Magazine, “and the brands are feeling very pressed to get this right. They are incredibly open to what I’m saying to help them become more inclusive.”

  While Davis pursues her goals, she is focusing her work at a grassroots level. “Grassroots — it’s the story of my life,” she said. “Grassroots growth is organic; it happens slowly.  But it’s more genuine, and people are more invested.”

  And spirits — be it whiskey or wine or beer — will always have an invested audience. “Every industry has diversity issues,” Davis said, “but the spirits industry cares. It’s in your face. It’s colorful as a product; it’s engaging. With bourbon, it’s not who makes the best, but who you had it with. That’s what makes that bottle your favorite.”

  For Samara Davis and the Black Bourbon Society, “America’s Native Spirit” is, indeed, a universal language that is championing diversity and inclusivity in the spirits’ world.

For more information on Black Bourbon Society, visit www.blackbourbonsociety.com

Startup Distilleries: Advance Planning and Expert Guidance Make for a Smooth Ride

Cyndi
upper deck of a distillery facility

By: Cheryl Gray

Building out a new distillery evokes the same excitement as driving a brand-new car. Think gleaming exterior, masterful engineering, unique design and an owner’s manual – the latter being a solid strategic plan. These are the pistons of a powerful engine for distillery startups moving toward the on-ramp of the spirits industry.

VITOK Engineers

There are experts whose business it is to prevent distillery startups from stalling. VITOK Engineers is one. Headquartered in Louisville, Kentucky, VITOK boasts more than 400 completed distillery projects across the globe, both new and refurbished.

Founded in 1967, VITOK combines the expertise of about 40 multi-disciplined engineers and designers. CJ Archer is Vice President of Marketing and is also a credentialed engineer certified to investigate fires and explosions. Archer says that startup distilleries can avoid surprises – and hits to their bank account – with careful planning.

“The first consideration in starting a distillery project is to determine the products you can sell, how to sell them and how much you can sell. How will you set your product apart from the crowd? Will you be selling purely onsite in your gift shop, selling regionally, nationally, internationally? This step usually requires some expertise from someone who has knowledge of distribution and marketing,” Archer says.

“Second, you’ll need to establish a business model. A distillery project generally requires very deep pockets. The design phase could last as much as a year, construction two years, and then maturation time for whiskeys can take several more years. How will you provide both construction and operating capital until you’re in the black? Some startups choose to distill white spirits initially to create an income stream. Others choose to purchase aged whiskeys and package them under their label. One can also distill products for others at bulk rates. Regardless, the business plan is your road map to financial success, but it has to be based on solid data.”

A good business plan won’t cut corners on reliable engineering and design, Archer says. “One critical feature of the business plan is the to determine the project capital costs. For this step, you’ll need an experienced process engineer, like VITOK. If the distillery is desired to attract tourists, you will also need a good architect.

“If so, both should be hired simultaneously, as they’ll need to work together to combine the most efficient operation with the desired visitor features. Experience allows the process engineer to quickly and accurately estimate the costs for distillation equipment, installation, piping, electrical and controls. Likewise, an experienced architect can estimate the building costs, including construction, HVAC, grounds/landscaping, fire safety, etc. Thus, the more experience with your project team, the less cost and more accuracy you’ll receive in your capital cost estimate. Once your costs are known, then it’s time to secure funding.”

Archer stresses that any project budget must include a line item for contingencies. “One important piece of advice from my two decades in this industry – never underestimate your budget contingency. Whenever you put a shovel into the ground, you never know what you’ll dig up. At project initiation, there are many unknowns, and these should be considered in the budget.”

He adds that startup distilleries cannot ignore safety costs. “Beverage distillation is an industrial process. As such, it has hazards that must be considered. Grain dust is explosive, and alcohol is flammable. There is also steam, compressed air, cleaning chemicals and OSHA considerations. With a good, experienced process engineer, the owner doesn’t have to worry about these items. The process engineer ensures that there are no surprises. Similarly, a good architect will design the facility to be both interesting and safe for visitors and distillery personnel alike.

“Another often overlooked factor is the need for quality project management. Your project will need a champion, and the best champions are certified by the Project Management Institute as Project Management Professionals.”

A well-rounded team includes mechanical, electrical and plumbing (MEP) engineers to design the building systems. “You may also want specialists to design event spaces, artistic elements, or unique features,” says Archer. “The design phase is a very collaborative effort between the owner, architect and process engineer, so make sure that you’re comfortable with the team you choose. There are many who claim distillery experience, few who truly have it.”

Symbiont Science, Engineering and
Construction, Inc.

SYMBIONT SCIENCE, ENGINEERING AND CONSTRUCTION, INC., helps both start-up and high-capacity distilleries across North America and the Caribbean. Headquartered in Milwaukee, Wisconsin, the company is celebrating its fourth decade as a leading full-service engineering, design-build, and construction firm. SYMBIONT’s team and their innovative engineering technologies for the spirits and beverage industry help distilleries achieve their environmental and sustainability goals. They prepare start-ups for potential expansion and scalability.

SYMBIONT tends to work with growing operations and larger facilities that typically have a bottleneck: waste stream pitfalls, planning, and other concerns that are necessary but not in the distillery’s realm of expertise. SYMBIONT provides a diverse team of engineering experts from virtually all fields to address those concerns. Start-up distilleries can benefit from SYMBIONT’S guidance with a broad range of services, such as facility planning, construction and fabrication, regulatory requirements, water conservation/reuse/reduction, waste byproduct management, waste-to-energy alternatives, utilities engineering for equipment integration and process design and controls systems.

SYMBIONT started working with distilleries due to the firm’s experience with very-unique, high-strength waste services as a qualified engineering consulting firm. High strength waste is a challenge throughout the spirits and beverage industry.

Joe Kolodzinski, Director, and Jeff VanVoorhis, Vice President, for SYMBIONT help distillery start-ups and other beverage manufacturers steer clear of expensive mistakes by guiding them to focus in on the big picture: long-term growth.

Many start-ups, Kolodzinski says, do not always consider the impact of non-equipment aspects to the bottom line. This includes a checklist involving environmental issues, space constraints, utility capacity as well as potential utility and building modifications. Kolodzinski says that with a little foresight, start-ups can avoid many missteps.

“A major misstep,” he says, “is in facility planning: either planning for a new facility or an addition to an existing facility. We understand the start-up process intimately and can help you identify the utilities you need. As a full-service engineering and construction firm, SYMBIONT works closely with you to take a project from concept to production and advises you on how decisions made at the front end of the project can have a significant impact on your facility’s operations.”

“Are you selecting your site based on distribution and foot traffic, or are you looking at available utilities? We have seen issues where the city in which the client was planning to put their plant did not have an infrastructure of sufficient size and capacity to handle their waste stream. This results in lots of costs upgrading city sewer lines and a low allowable limit of waste stream constituents. Find out if you are in a location that has a municipal treatment plant; understand the location of the site and whether the infrastructure is already in place or there would be costs associated with it. Sure, you need a certain amount of acreage, but you really need to understand all of the true costs.”

As raw ingredients enter the facility and go through the process from milling and cooking through fermenting and distillation, waste byproducts are a result. SYMBIONT knows how to address the challenges waste byproducts and stillage present. During the conceptual phases of a project, SYMBIONT evaluates site and location-specific alternatives to provide an optimized solution to handling waste byproducts.

“Not knowing how to handle waste byproducts and wastewater,” notes VanVoorhis, “is literally like pouring money down the drain.” He continues, “What are you going to do with them? Do the municipal utilities have capacity to accept your waste byproducts and wastewater? In some cases, they do not, which means you have to truck waste and that’s a significant, often unanticipated cost. Plan for your distillery’s wastewater/water management. Understand what’s required, the costs and the alternatives. Look at everything upfront and understand the big picture. We help you do this. We know common, and not-so-common mistakes, and advise you on how to avoid them. If your goals are set at zero waste, you can be a leader in water use. We’ve done work for facilities to go to zero liquid discharge (ZLD) and can efficiently develop that pathway for you.”

Additionally, having worked across North America and the Caribbean, SYMBIONT professionals understand and can explain how codes and regulations vary from location to location. Their compliance experts get involved during the planning stages to provide distilleries with an understanding of the local regulatory and compliance agencies that will govern the project. Kolodzinski says, “Our clients know early on what may drive design decisions and the related costs. SYMBIONT’S regulatory experts help you understand the applicable code requirements based on site and what agencies to work with for local regulatory and compliance agencies.”

From a destination standpoint, the location of the distillery may also be such that there are limitations in local qualified contractors to support the specialized installation needs. Kolodzinski explains, “Project costs will be impacted if a higher level of engineering support is required to oversee the installation and verify installation aligns with the design. Additionally, if qualified contractors are coming from outside the local area, the installation costs may increase due to additional travel and living costs.

When it comes to implementation of the project, start-up distilleries should look at the availability of qualified contractors in their locations. A higher level of oversight from the project engineering team may be needed if the contractors available do not have experience installing distillery systems.”

SYMBIONT has construction capabilities and construction leaders who have worked nationwide, in Canada, and in the Caribbean. They can assemble a pool of qualified contractors with whom the firm has experience. Contractors you can trust to provide the installation quality your project requires and deserves.

Müller Pot Stills

Among the most important expenses of a startup distillery is, of course, the still. Choosing the right one is about research and the reliability of information from someone who knows the industry.

Few know more about beginning a startup distillery than Frank Deiter, a master distiller who founded Okanagan Spirit in 2004, which is among the first craft distilleries established in British Columbia, Canada. These days, Deiter is a consultant for Müller Pot Stills and represents the company in North America.

Müller Pot Stills has clients spread across six continents in 51 countries. In business since 1929 with its manufacturing headquarters in Germany, the fourth-generation, family-owned company creates custom-made stills. Many consider the stills to be engineering marvels, formed by a combination of traditional craftsmanship and state-of-the-art technology. One thing that hasn’t changed is the company’s practice of fashioning stills using hammered copper. Deiter explains why this process distinguishes Müller Pot Stills from its competitors.

“The hammering of the copper increases the hardness of the copper; thus, the catalytic properties of the copper stay active way longer. Thus it will render nice smooth distilled products for a longer period of time between cleaning cycles.”

The stills feature patented design elements, including unique, advanced column technology. That, combined with a well-recognized aroma hat, distinguishes the brand from its competitors. The workmanship, Deiter says, is like no other.

“If it comes to distilling equipment, I want to sell only the best. And, there is no equivalent production facility to be found that is as good or better than the equipment coming from Müller in Germany.”

Aside from acquiring equipment and a physical plant, startup distilleries need legal advice to help navigate through numerous regulations, permits and other government requirements. There are state regulations and federal agencies to consider, including the Food and Drug Administration and Occupational Health and Safety Administration. CJ Archer may have said it best: “You cannot put a label on a bottle until the TTB has given its blessing.”

The Basics of Nitrogen and CO2 Use in Breweries & Distilleries

Cyndi
bartender mixing alcohol

By: Alyssa L. Ochs

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

Using CO2 in Breweries & Distilleries

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

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

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

Using Nitrogen in Breweries & Distilleries

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

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

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

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

Equipment Needed for CO2 and Nitrogen

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

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

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

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

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

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

Tanks for CO2 and Nitrogen

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

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

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

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

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

Pros & Cons of CO2 and Nitrogen

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

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

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

Safety Considerations for CO2 and Nitrogen

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

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

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

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

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

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

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

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

Expert Advice Goes a Long Way

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

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

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

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

Cyndi
gluten free signage

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

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

The Gluten-Free Market for Alcoholic Beverages

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

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

Recent Rule Changes for Fermented and Distilled Beverages

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

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

Fermentation vs. Distillation What’s Involved?

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

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

The Benefits of Third-Party Certification

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

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

Best Practices for Producing Gluten-Free Beer and Spirits

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

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

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

Things to Look Out for When Producing Gluten-Free Alcohol

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

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

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

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

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

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