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

beer carriage

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

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

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

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

  British soldiers wrote in their diaries about beer:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

“Feb. 23/19

Dear Clara:

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

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

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

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

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

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

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

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

“Hello Rummy:

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

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

  From the Archives of the National WWI Museum and Memorial.

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

map seen in an iphone

By: Becky Garrison

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

ShiftNote

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

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

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

Whiskey Systems Online

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

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

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

Daruma Tech

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

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

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

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

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

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

KegID

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

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

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

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

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

Kegshoe

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

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

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

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

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

Small-Batch Maps

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

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

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

Keeping Off Flavors Out of Beer

By: Jessica Spengler

When consumers reach out for a craft beer, they have an expectation of how that beer should taste. When an off flavor sneaks in, it can lose the brewery customers and hurt their reputation. Keeping off-flavors out of beer is not as difficult as it may seem, as long as brewers have the tools and know-how to do so.

An off flavor is a defect in beer that does not adhere to the style or ruins its taste. Some of the most common are diacetyl, which takes the form of butter or theater popcorn; oxidation, which comes across as papery; dimethyl sulfide, a sweet corn taste; and acetaldehyde, often taking the shape of green apples.

Causes

Many different factors cause off flavors, but it often boils down to the same basic concept: a fault in the brewing process.

Raw ingredients

To make good beer, you have to start with good raw ingredients. Malt, hops and yeast should be stored correctly; monitored for defects, mold, and pests; and used as fresh as possible. However, it all begins at the source. Brewers should know what to look out for when buying raw ingredients, starting with the vendor.

“[When it comes to] raw ingredients, you have to see who you’re buying it from. Are they reputable suppliers? We buy a lot of malt from the Czech Republic, I’ve been over their twice visiting the malt house and the hop house. One important thing for the brewers is to be auditing their vendors, making sure they know you’re watching, put a face to who they’re shipping ingredients to,” said Scott Hovey, owner and brewmaster at Adelbert’s Brewing in Austin, Texas.

If an ingredient isn’t good on its own, it won’t be good in the beer, so don’t be afraid of sensory analysis, Hovey said. “It’s like going to the supermarket. You should smell it, look at it, check the taste, the flavor. Every bag of malt, I usually pop a couple of grains in my mouth just to see what it tastes like, what it feels like. It’s surveying the quality of the ingredients.”

Water should be free from chlorine, taste fresh, and be clear.

“With water, smelling it and tasting it is as easy and effective as any test. You can have the best yeast, and the best malt, and go through the process, but if your water has chlorine in it, that can ruin the beer,” said Jim Matt, Chief Scientific Officer at Rhinegeist in Cincinnati.

Cory Hebert, brewer at Adelbert’s, agrees. “If you can’t drink your water because it’s so chlorinated, or any number of factors, then it’s definitely not going to be good to brew with. If you brew with chlorinated water, then you’ll get what’s called chlorophenol in the final beer which will leave the beer tasting like you’re drinking a plastic bag or bucket,” he said.

Fermentation

The most common time for off flavors to develop during brewing is fermentation. The reason for this typically comes down to problems with yeast.

“An overwhelming number of off flavors can be created during fermentation,” said Matt. “A lot of the time, people don’t pitch enough yeast, or they pitch too much yeast, and they’ll get off flavors. If the yeast is contaminated with something else, you can definitely get off flavors from it. That’s where you need to use the greatest amount of care. Yeast needs to be handled in an aseptic environment, so we want to make sure that we handle that yeast free from any other contamination.”

The good news is that, often, when yeast is the problem, it’s also the solution. Keeping beer on yeast a little longer, whether in the tank or through a second fermentation in the bottle, will get off flavors like diacetyl out of the end product.

“I’d say that a good 30 to 40 percent of the bad flavors I’ve tasted in beers are just the beer was rushed through the process. They just didn’t give the yeast long enough to work on, or didn’t let it settle long enough. Time would have fixed it,” said Hovey.

Cleaning, Sanitation and Maintenance

As the old saying goes, brewing is 90 percent cleaning, and one of the reasons for that is to keep the beer as clean as possible.

“The number one prerequisite to being a brewer is an obsession about cleaning. It’s true. You’ve got to keep your plant clean,” said Phil Leinhart, Brewmaster and Brewery Operations Manager at Brewery Ommegang in Cooperstown, New York.

Rhinegeist’s Matt agrees and recommends using tools to ensure tanks are thoroughly wiped of contaminants. “Cleaning and sanitation is everything. If a tank is not clean, then by definition it’s not sanitary, so there are several different ways to determine the cleanliness of a tank. My favorite way is a thorough visual inspection, and that’s usually sufficient. We have a device here called an ATP meter. ATP (Adenosine triphosphate) is a compound contained within all living organisms. The brewers will swab a tank looking for ATP, and, if its in there, then the tank is not clean,” he said.

At Rhinegeist they use Peroxyacetic acid to keep their tanks clean, while the crew at Adelbert’s has been known to use a pH swing to purge their brewing vessels.

“Something we do here is cleaning with a high alkaline, and also highly acidic solutions, so we get what you call the pH swing. You use a caustic soda, so you have a very high pH, and then you follow it with acid, so you have very low pH, so then you’re killing pretty much any organic or inorganic compound that would be present,” said Hebert.

Proper, continuous maintenance will keep equipment running well while also ensuring that it won’t harm the beer.

“If your pump is sucking in air because the mechanical seal is bad, it’s gonna cause high oxygen in your beer and your beer is gonna go stale, it becomes oxidized. It’s all related. If you let your equipment get into disrepair, it’s going to affect the product at some point. If refrigerators and cooling aren’t cold enough, you don’t take control of your fermentation temperatures efficiently, and you can’t cool the beer as quickly. It can all eventually affect your beer,” said Ommegang’s Leinhart.

Detecting Off Flavors

There are a multitude of ways to test for off flavors. Breweries equipped with or who employ labs can “plate” samples of beer to test for organisms that may cause the brew to taste off. 

“Plating is [taking] a sample of beer from a tank and putting it on a media where microorganisms are encouraged to grow. Then we put that in an incubator, and we allow things to grow. If we see something growing that shouldn’t be, then we know something’s not right. Plating is a fairly inexpensive, not terribly time consuming, and fairly easy process to do that every brewery, in my opinion, should be doing. It’s pretty easy, and it doesn’t require a lot of technical skill,” said Matt.

More sophisticated technologies can also be implemented by brewery labs, such as a GeneDisc or a headspace gas chromatograph. These technologies require a higher level of skill to use and tend to cost more than many small breweries can afford. However, they aren’t always necessary when testing for off flavors. Nothing beats a good old fashion taste test.

“The analytical capabilities of a brewery can never compensate for the sensory tests that are required in your own sensory taste pallet. The reality is that you can’t go into a laboratory and get a complete understanding of the quality or the consistency of the beer just analytically,” said Christian Riemerschmid Von der Heide, President and CEO of Siebel Institute, the oldest brewery science institution in the United States.

Brewers will typically form a taste panel filled with brewers, servers and salespeople who have been trained to detect and identify specific flavors. Taste panels are used to help determine if an in-process or finished beer has any defects.

Siebel Institute, founded in 1872, offers flavor training kits for this purpose. Brewers can order from over 40 flavors, both wanted and unwanted, to “dose” their beers and hone the palates of their employees. The training has several purposes, most notably to find out who is particularly sensitive to certain smells and tastes, but also to make sure everyone is on the same page.

“You are not only training your people to detect, but also to identify. The difference is ‘Yeah, I can detect that there’s something different, but I cannot name it.’ We need to be able to do both so that everybody uses the same terminology; but also what is important is to know who is better at it than others. Therefore, if somebody that we know is very well trained in diacetyl and can pick it up at lower concentrations, and that person says ‘Yes, I can detect diacetyl,’ then this is the [person] that you pick [to test for it],” said Richard Dube, Director of Online Education at Siebel Institute.

“I would say sensory analysis and the taste panel is at least 50 percent of your quality control. So if 50 percent of your quality control isn’t standardized, using sensory kits, using flavor standards, then it becomes very subjective, and you have a vulnerability,” said Riemerschmid Von der Heide.

Using taste panels is highly recommended by Siebel, which offers on-site classes at their Chicago campus as well as an online curriculum. However, it’s wise to train all employees from the brewmaster to the newest salesperson in case a flavor problem comes about after the beer has reached consumers.

“Outside the plant, not only the brewers but also your sales force needs to be able to respond to a complaint at a bar or wherever that they say, ‘Your beer tastes funny.’ Because they have been trained to identify oxidation or diacetyl or other off flavors, they can pinpoint a little what the problem might be, or further educate the retailer and explain that it is actually part of the flavor profile of this specific beer,” said Dube.

Can off flavors be corrected?

Many off flavors can be corrected once they’re detected. For most, such as diacetyl, acetaldehyde, or sulfuric compound, a few extra days on yeast does the trick. When making certain beers, according to Adelbert’s Hebert, the process may be sped up, if done correctly.

“Many times too, especially back to diacetyl, in lagers and even English Ales, if you’re fermenting at say 68 F, you’ll do what’s called a diacetyl rest. You bring the beer up to 72 F towards the tail end of fermentation to force that yeast to clean up those off flavors and make sure everything gets scrubbed and is nice and neat and ready to drink,” said Hebert.

An unintended sour may work well blended into another beer in the brewery’s sour program. Even in the case of non-sour off flavors, the beer may be successful in a blend.

“When something is not within spec you can rebrand it as something else if the off flavor isn’t too bad. You can blend it. Sometimes we’ll take something that’s just not true to spec, and we’ll take it down in our sour program. Sometimes the secondary organisms can clean up those off flavors,” said Matt.

However, sometimes off flavors are impossible to correct. Butyric acid, often described as “baby sick;” medicinal flavors and hydrogen sulfide (rotten eggs) are examples of off flavors that cannot be corrected, and the batch will be “dumped.” When dumping becomes inevitable, which according to Matt is not that common, don’t let it become a sore point.

“There are times you have to swallow your pride and maybe take a little bit of a hit to keep quality up. Nobody likes dumping beer, but I’d rather dump a batch of beer that is not true to brand than sell it and be subpar and get a bunch of complaints from your customers,” said Matt.

Keeping off flavors out of beer doesn’t have to be complicated. According to our experts, with knowledge, foresight and a little elbow grease, brewers can substantially decrease their chances of bad tasting beer.

“It’s a multi-disciplinary approach. Just knowing your process and knowing where you’re at risk and then controlling those risks. Be knowledgeable of defects and how they’re caused, control your process, especially those critical quality control points, and then test both in the lab and with a taste panel so that you know that you’re okay,” said Leinhart.

“Pay attention to your customers and do the absolute best you can cleaning, sanitizing and using the best ingredients possible. Don’t compromise. The cheapest test that you can do is sensory. Taste everything. Let that guide you to making a quality product.”

“Just keep your brewhouse clean, make sure your ingredients are fresh, keep your yeast happy, and know your process, and you should be 95 percent of the way there,” said Hebert.

Kombucha with a Kick

By: Nan McCreary

Artisanal cheese for sale at artisan market in Ile rousse

Hard Kombucha is one of the latest drinks to make a splash in the “better-for-you” alcoholic beverage market. But what is hard kombucha, you ask? Wait, what is kombucha?

  Kombucha traces its roots to China’s Qin Dynasty (221 BC), where it was known as the “The Tea of Immortality” for its medicinal properties. The drink is made by mixing sweetened black or green tea with a symbiotic culture of bacteria and yeast called SCOBY and allowing it to ferment. The result is a tart and sour, lightly-carbonated drink that’s naturally gluten-free, low in sugar and chocked full of probiotics. With health-conscious millennials driving today’s beverage industry, it’s no wonder that kombucha is experiencing a revival, and is one of the fastest-growing beverages on the market today.

  Kombucha first went mainstream in the U.S. in 1995 when GT Dave, the man behind GT’s Kombucha, established the first and largest kombucha brand in the industry. Promotion for the drink touted the health benefits of both tea and probiotics, and sales immediately exploded in supermarkets throughout the country.

With an ABV of less than 0.5%, kombucha could be sold legally as an alcohol-free beverage. In 2010, however, a Department of Agriculture inspector discovered a kombucha at a Maine Whole Foods that contained alcohol levels well above 0.5%. It was pulled off the shelves nationwide, and producers were left with three options: keep their kombuchas under 0.5% and follow strict labeling laws, sell them in the beer section at their current ABV, or create an intentionally higher ABV beverage. For those who chose the latter — a “hard” kombucha — the crisis presented a golden opportunity. The low-alcohol beverage with a healthy dose of probiotics caught on quickly, and in just a few short years, became the hot new kid on the beverage-industry block. According to Nielsen, sales of hard kombucha spiked 247% in the 52 weeks leading up to April 20, 2019.

  One of the first to create high-alcohol kombucha was Dr. Hops, based in San Francisco. “I was working in Berkley with the fitness and yoga community, and craft beer was exploding and doing amazing things,” said CEO and founder Joshua Rood. “Non-alcoholic kombucha was also growing rapidly. I’ve always been a food and beverage guy. When I saw this happening, I realized you could make a high-alcohol kombucha that would be authentic to both categories, offering the benefits from the health properties of straight kombucha, and the flavor, complexity and pleasure of a really good craft beer.”

  With only one hard kombucha on the market at the time—Unity Vibration in Ypsilanti, Michigan—Rood approached a brewer who was making both beer and kombucha and asked him to make a prototype that offered the best of both beverage worlds. “The prototype was awesome,” he said.  “At the same time, my wife had an adorable rabbit named Dr. Hops, and I thought, ‘what a perfect name for a health-conscious kombucha that’s all hopped up.’ So that’s why we named our product Dr. Hops.”

  While Rood was developing his product in 2016, another hard kombucha hit the market: Boochcraft, California’s first high-alcohol kombucha, and today’s market leader in sales.

  To make hard kombucha, producers start with a mixture of sugar, tea and water. For his base, Rood selects the highest organic quality and fair trade tea he can obtain. Next, he adds SCOBY—a combination of bacteria and yeast that he’s developed in-house—and adds it to the tea mixture. The concoction ferments for a week, allowing the SCOBY to work and make kombucha what it is: a probiotic, sour and flavorful drink. To raise the alcohol level beyond the 0.5% from the initial fermentation, Rood adds a Belgian Ale yeast that creates a slight beer quality and lets that mixture ferment for another week. This step raises the alcohol level to 0.7 to 1%.  Finally, after the second fermentation is complete, Rood adds hops, fruit, herbs or spices and “lets it rest” to let the flavors develop. 

“This is a very mellow waiting period,” Rood told Beverage Master Magazine. “We gently stir the mixture and let the particulate matter sink to the bottom. Then we add a bit of sugar, which gives the kombucha a touch of sweetness, and finally, we package it.”

  Dr. Hops makes four standard products: the IPK, similar to a juicy IPA; the Lop, a tart, refreshing pomegranate chai with prominent grapefruit notes; the Jackalope, with prominent ginger, lime and mint flavors; and the Blinky, with hints of basil and lemongrass. All are dry-hopped with hops sourced from the Pacific Northwest. Sugars vary from 4-6%, and ABV runs from 5-9%. Flavors come from fresh, organic fruits rather than flavoring compounds.

  In terms of legal classification, hard kombucha is typically classified as a beer rather than a wine product. The Dr. Hops production facility is similar to a brewery, with stainless steel tanks and temperature, pressure and oxygen controls. To produce optimum results, brewers have to be very meticulous, Rood explained. “The process goes through many different phases, and each phase has the potential to create benefits as well as off-flavors. It’s really an art. We have to check fermentation constantly, as it’s a living process and not an exact formula, although we’re getting pretty good at it.”

  Ultimately, Rood’s goal is to create a product that is “good for your belly” and “good for your buzz.”  Hard kombuchas have less sugar than anything in the alcohol world, he said, except for pure vodka. “As Americans, sugar is one of the worst things we consume, so we keep ours as low as possible.”

  Rood also uses a kombucha strain that’s rich with alcohol-resistant lactobacillus, a health-enhancing probiotic. Because Dr. Hops’ products are unfiltered and unpasteurized (heating from pasteurization destroys enzymes, organics and flavors), the probiotics stay in the beverage, helping the body process not just food, but also alcohol. Another health benefit: Dr. Hops uses only organic fruits, roots and herbs, which provide additional nutrients.

  “Essentially, we’re trying to eliminate the junk people put in their bodies while drinking alcohol,” Rood said. “When you take all of our ingredients together, you have a beverage that’s remarkably distinct and much healthier.”

  As more and more health-conscious imbibers turn to beer/kombucha blends, Dr. Hops is enjoying great success. Currently, the company produces 1,000 barrels a year, with plans to triple—or even quadruple—production within the next year.  Right now, they package their kombucha in bottles, but Rood intends to switch to cans soon. Dr. Hops is available in liquor stores and independent food stores and markets in Northern California and is on tap in several bars in the Oakland, California area. Rood’s goal is to increase distribution to the western third of the country and Florida. 

  “Sales have been amazing,” he said.  “It’s something people want, but most don’t know it until they discover it, and then they get very excited about it.”

  Within the past couple of years, many up-and-coming hard kombucha brands have emerged within the growing industry, including Flying Embers, KYLA, JuneShine and Lambrucha. Established kombucha producers are also getting in on the action. Wild Tonic, originally a regular kombucha brand, created two hard kombucha products: one with 5.6% ABV and one with 7.6% ABV. Kombrewcha, one of the country’s pioneering hard kombucha brands, received backing from AB InBev’s investment arm, ZX Ventures, to produce a new line of hard kombuchas.

  It’s not only AB InBev getting in on the action, however. Craft breweries have also extended their product portfolio to include hard kombucha. For example, New Holland Brewing, a Holland, Michigan craft beer brand that’s been around for over 20 years, now produces a seasonal offering that combines the flavors of an IPA with Kombucha. Boston Beer, maker of Samuel Adams, recently launched Tura Hard Kombucha. And Deschutes Brewery in Bend, Oregon collaborated with Humm Kombucha to create Humm Zinger, “a beer that blends together Humm’s tangy grapefruit kombucha with Cascade hops and Pilsner malt for big citrus flavor with a profound dry hop character.”

  Clearly, hard kombucha is hitting the mainstream. After all, what’s not to like? It’s all-natural, gluten-free, organic and vegan, low in sugar and calories yet contains enough alcohol to be fun. As part of the low-alcohol trend, which includes hard seltzers, hard ciders and low-alcohol spirits, hard kombucha has a lot of opportunities to grow. If you think you might be one of those who want it but don’t know it yet, hustle off to your favorite vegan restaurant, grocery or liquor store and check it out.

“SMART” Brewing: Innovation & New Technology for Craft Breweries

By: Cheryl Gray

man inspecting a machine

Brewers have needed packaging and tools to dispense their products ever since beer was first brewed a millennium ago. Today, innovation and technology that transform a good idea into a great one are driven by industry titans who know how to keep pace with the demands of a highly competitive field, putting craft breweries in a position to stay a step ahead in an increasingly crowded global marketplace.

Print-on-Demand With Abbott Company

  One of those titans is Wisconsin-based Abbott Company, in business for 95 years, specializing in industrial marking and packaging solutions. Tim Stark, Abbott’s president, points to the rise in craft brewing as the catalyst for creating a demand for innovation and new technology aimed at achieving best practices in product identification operations.

  With craft breweries increasing their production capacity and distribution, Stark says there is a correlating trend towards print-on-demand inkjet technology replacing pre-printed boxes and hand-applied labels.

  “Print-on-demand inkjet technology offers many benefits, including a lower cost-per-mark compared to pressure-sensitive labels, as well as more flexibility for managing corrugate stock volumes and case sizes. Our recommended high-resolution inkjet technology, FoxJet ProSeries print heads, has been recently enhanced to print scan-able barcodes on porous cases at higher speeds consistently.”

  Stark says that in automating the printing of product identification on cases, today’s brewers are also looking at improving efficiency by integrating what he calls “scan and select” capabilities into their operation.  

  “This makes product changeovers, and subsequent print message changes effortless and free of human error. A hand scanner is used to scan a barcode from a work order, which selects the correct message to be printed on the case. This is often paired with a barcode vision system which can verify the readability of barcodes before they are palletized and shipped to retailers, allowing a turnkey case coding solution that will scale as breweries continue to grow.”

  Craft breweries are also looking for innovation when it comes to products that solve their primary packaging identification needs, says Stark.

  “We also see a growing desire for high contrast date coding on bottles and cans that are dark in color,” he said. “With a focus on freshness, an increasing number of craft breweries are requesting to use yellow and light blue inks to make the date code and other important product information pop out to consumers. The introduction of the Linx 8900 Plus soft pigment inkjet printer allows brewers to print high contrast codes on their bottles and cans while avoiding the difficulty commonly found with traditional pigmented ink printers. “

Shrink Sleeves With PDC International

  PDC International is another company at the forefront of an industry upon which many craft breweries depend—shrink sleeve labeling. From the moment the business opened in 1968, anticipating customer needs is what the Connecticut-based company has brought to its brewery clients. PDC Founder Anatole Konstantin immigrated to the United States from post-WWII Eastern Europe, building his company out of the den of his home. 

  Through vertical integration and in-house controls, including its own machine shop, PDC is known for quickly solving customers’ production challenges. Neal Konstantin is president of the company his father, Anatole, founded fifty years ago. He says the widespread use of shrink sleeves, a technology allowing a brewery to place its brand name on blank cans rather than having to inventory large quantities of pre-printed cans, saves warehouse space, simplifies logistics and saves money.

  “The recent widespread adoption of shrink labeling by breweries has resulted in machine refinements for labeling [either] full or empty aluminum cans of all sizes,” says Konstantin. “Special product handling ensures that aluminum cans are not dented or marred when processed through the labeler. PDC’s proprietary cutting blades now last millions of cycles between sharpenings, saving downtime and labor and reducing overall costs. We offer the widest range of shrink sleeve label applicators in the industry, ranging from entry-level systems up to 400-500 pm.”

Release the Pressure With

R&S Supply Company

  Don’t be thrown by the Napa Valley location of R&S Supply Company. It also caters to craft breweries, along with wine and other industries in all 50 states and 10 countries around the globe. Founded in 1984, R&S Supply Company is a distributor of products from brands such as Tassalini Valves, Strahman Washdown Products, Definox Valves, Texcel Brewers & Spirits hose assemblies and Dixon Sanitary Pumps & Fittings.

  Company President Paul N. Roberts touts the newest product line that R&S Supply has recently added to its roster. “The newest product line that we have added is Bradley Industrial Products and Keltech Tankless Electric Water Heaters. The Keltech Tankless Water Heaters provide instant hot water anywhere in a production facility when mounted on our cart.”

  Roberts points to the Italian-manufactured line of Tassalini Sanitary Valves as one of his company’s top innovative products. Industry insiders know that the name Tassalini has been around since 1922 when it first produced products for the aeronautics industry. R& S Supply Company is Tassalini’s largest U.S. distributor, Roberts says, stocking all original manufacture replacement seals and repair kits, along with an entire line of Tassalini Valves for every need.

“We stock the complete line including butterfly valves, actuators, check valves, ball valves, tank vents, sight glasses, plug valves and all the accessories and repair parts.”

Pour One Out With Xpressfill Systems

  A relative newcomer to the industry of packaging and tools, XpressFill Systems LLC is led by owner Randy Kingsbury, a mechanical engineer with more than 30 years of experience. Based in San Luis Obispo, California, XpressFill Systems is a global player in the development of affordable, efficient filling equipment for the brewing industry, with customers in the United States as well as Europe, Australia, South America and Asia.  

  “Our equipment is small—tabletop—making it easy to position in smaller brewery operations. It is simple to operate and maintain, requiring only one or two operators to efficiently maintain the quantity and quality of the beverage,” Kingsbury says.

  XpressFill introduced its first filler for brewers in 2014, a tabletop counter pressure filler for bottles with a pair of fill spouts. This product, Kingsbury says, was designed to launch its fill sequence with a carbon dioxide purge, then seal and fill the bottle to a level sensor that automatically stops the fill so the bottle can be removed and capped. XpressFill edged its technology forward, developing its four-spout counter pressure bottle filler, capable of filling 12-ounce bottles at a rate of 400 per hour.  In 2018 the company introduced counter-pressure fillers for cans.  

  “The XF4500C has two fill spouts and is capable of filling 300 12-ounce cans per hour. To further satisfy the demand for filling cans, the XF2200 open fill unit was developed. This provided a faster, less expensive alternative, capable of filling 360 12-ounce cans per hour with two spouts, while still providing quality fills,” says Kingsbury.

  More innovation and technology is in store with the development of XpressFill’s new two-spout filler, the XF280W. “Current quality control of fill volumes is accomplished by craft brewers weighing their filled cans, which is an additional step following the filling,” Kingsbury says. “We set out to explore the possibility of providing a user-friendly and cost-effective filler that would measure the weight of dispensed beer to save the additional weight verification step.”

Expand With iStill

  For craft breweries exploring the world of distilling, Netherlands-based iStill offers an automated, robotized distillery unit that promises a simple setup with only a water hose and electrical plug needed to begin.

  “Due to our scientific approach to distilling, we have been able to create an easy to operate, versatile machine that takes the magic out of distilling great spirits, and makes whiskey, vodka, gin and rum production an easy add-on to the already existing brewery,” says Edwin van Eijk, CEO of iStill.

  “The iStills come in sizes ranging from 26 to 1300 gallons. Each and every machine can make every distilled product. If the craft brewer does not want to re-invest in expanding mashing or fermenting capacity, the iStills can mash and ferment as well. Everything takes place in the same unit.”

  iStills offers a broad range of services, Eijk says, to assist its more than 700 clients worldwide, including iStill University, which educates and trains approximately 200 distillers annually in North America, Europe, Asia and Australia. 

  Innovation and technology are ever-evolving as leaders in the packaging and tools industry find new ways not only to push themselves but also, push craft breweries into thinking smarter about ways to make their products move quickly in the marketplace.

Finishing and Aging Options Evolve with Booming Secondary Barrel Market

By: Gerald Dlubala

barrels outside a facility

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

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

Impacting Flavors By Following The Seasons

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

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

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

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

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

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

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

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

Kentucky Bourbon Barrel: The Name Says It All

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Will Cannabis Beverages Cannibalize Beer Sales?

By: Briana Tomkinson

Detail of cold glass of beer with cannabis leaf, marijuana infused beverage concept

Cannabis was legalized in Canada a year ago; however the production and sale of edibles, in-fused beverages and tinctures, remained illegal—until now.

  The first legal cannabis-infused drinks and edibles are expected to hit shelves as early as De-cember. Many have been designed to produce a high mimicking the effects of alcohol in terms of onset, intensity and duration.

  While the federal government officially legalized edible cannabis products on Oct. 17, produc-ers still need to obtain Health Canada approval, a process that industry insiders expect to take a minimum of 60 days.

  Some products will include only CBD, a non-intoxicating compound found in cannabis, while others will have THC, the psychoactive compound in marijuana that produces a “high.”

  According to a report from Deloitte, the cannabis-infused beverage market will be worth an estimated $529 million per year in Canada, most of which will be on top of existing cannabis spending. Deloitte predicts sales of these beverages will come at the expense of beer, wine and other alcohol as “cannabis-curious” customers experiment with marijuana instead of booze.

  The Deloitte report notes that alcohol and tobacco companies are looking for opportunities to enter the legal cannabis industry to avoid losing market share. Pharmaceutical companies are also entering the market, as consumers turn to CBD oil and cannabis to self-medicate.

Mild High Aimed at New Cannabis Consumers

  Deloitte predicts cannabis-infused beverages will appeal to older, often female, Canadians who are concerned about the adverse effects of alcohol and are interested in trying cannabis yet are turned off by the idea of smoking it.

  Most producers of THC-infused drinks are aiming for a formulation that triggers a high within about 15-20 minutes and lasts no more than a few hours. This effect is in contrast to most cannabis edibles and oils, which are slower to take effect and produce a high that can last as long as six hours.

  Unlike beer or wine, there’s little risk of a hangover from cannabis beverages. Some varieties can also boast they are low-calorie drinks, which could appeal to more diet-conscious con-sumers. Prices are expected to be similar to that of craft beer; however, the beverages can on-ly be sold at legal cannabis outlets, not grocery stores or alcohol retailers.

  In October, Ontario-based Canopy Growth Corp announced the launch of 13 cannabis-infused drinks, some boasting as few as five calories per serving. The drinks range from pure distilled cannabis, intended to be mixed with sodas or other beverages, to pre-mixed blends of canna-bis with tonic, ginger ale, cola, soda and fruit-infused sparkling water.

  Unlike some legal producers in the U.S., Canopy Growth’s lineup focuses on low-dosage bev-erages with an effect similar to that of a single beer or mixed drink. According to the Ottawa Citizen, while Health Canada allows a THC concentration of 10 mg per package, 10 of Canopy Growth’s 13 products will have 2.5 mg or less, producing a mild high aimed at appealing to inexperienced cannabis users looking for an alternative to alcohol.

  Truss Beverage Company has also announced it will be ready to release cannabis-infused beverages in December, including CBD-infused spring water and THC-infused drinks. Compet-itor Fluent Beverage Company said it would be prepared to release CBD-infused beverages but is still working on formulations with THC. 

Beer Brands Push Into Cannabis Beverages

  Ever since Canada legalized the sale and consumption of cannabis, big beer companies have been teaming up with cannabis companies to develop cannabis-infused beverages.

  Canopy Growth, for example, has benefited from billions of dollars of investment from U.S.-based Constellation Brands, maker of Corona. Truss Beverage is the product of a joint venture between Molson Coors and cannabis producer Hexo, and Fluent Beverage is backed by An-heuser-Busch, who has partnered with British Columbia-based pot producer Tilray.

  In June, Bloomberg reported that Molson estimates cannabis beverages will make up 20-30% of Canada’s legal cannabis market. However, a report by Deloitte estimated drinks make up just 1% of sales by value and volume in U.S. states where pot is legal.

Marketing, Labeling Restrictions on Cannabis Beverages

  If cannabis beverage producers want to steal market share from beer and wine, they need to overcome the strict limitations on marketing, packaging, labeling and distribution imposed by Health Canada.

Starting a New Craft Distillery: Part 3

By: Donald Snyder

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

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

Find Your Niche, Strengths

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

Understand Your State

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

 Foot Traffic is King

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

Quality is the Only Option

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

Do the Math on Still Size

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

Here is a simple example:

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

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

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

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

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

Source or Not, but be Transparent

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

  Sales and Marketing

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

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

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

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

Contact Donald Snyder at Donald@TimeAndTasks.com

Starting a New Craft Distillery: Part 2

By: Donald Snyder

3 men in front of distillery

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

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

1.   No Business Model or Minimal Operations Cash Reserve

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

2.  No Chilling System

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

3.  No Thought to Waste Water

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

4.   Not Understanding TTB Compliance and Reporting Regulations

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

5.  Not Involving Local Regulators

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

6.  Difficult Layout, Too Small of a Space

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

7.  The DJ Dilemma

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

8.  Making Whiskey with No Available Barrels

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

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

Contact Donald Snyder at Donald@TimeAndTasks.com.

Technology and the Benefits of a Digital Marketing Strategy

Shot of a young woman using a digital tablet in a bar

By: Robert Frost, Principal, Boelter Blue

Competition is fierce! With the number of craft breweries and brewpubs continually on the rise year-over-year, it should come as no surprise that current bar owners and operators must focus on more than just word of mouth, radio ads or the occasional 30 seconds of air time on the local network to create buzz about their business. Developing a marketing plan to maintain visibility and relevance is key to both the initial and ongoing success of your business.

But not just any marketing strategy will do.

A robust and diverse digital marketing plan, one that also leverages mobile technology, will play a significant role with effectively attracting and retaining customers. Utilizing loyalty apps and a variety of marketing automation initiatives will ultimately allow you to spend less time and money on your overall marketing efforts, while simplifying and maintaining your path for continued growth and success.

All of this speaks to the advancement of technology within this space. As such, it should come as no surprise that the role of technology continues to be on the rise, both in terms of what is in the hands of you and your loyal customers – on their phones and through a more personalized interface with your business – as well as the technology your business may currently be utilizing.

The increased involvement of technology is very much a generational change and one that craft brewery and bar owners are recognizing as a means to become better and more productive at what they do. The old saying, “work smarter, not harder” rings true across the board.

Align yourself with mobile technology and mobile marketing

By 2020, 77% of the US population will be using mobile technology daily. It’s the go-to technology for personalized communications. Adding to this impressive statistic is the notion that thirty-five percent of smartphone users are already claiming to use their phones more than 50 times a day—this is where craft brewery and bar owners and operators can make the biggest impact. Personal means connecting with customer routines, moods and of course, discerning taste buds. Data makes it possible—mobile makes it deliverable.

Most consumers expect information to be available at their fingertips. The vast majority of consumers are searching for information about a particular business on their smartphone, with 84% of them contacting that business as a result. An app with your menus, reservation, ordering, payment and delivery capabilities maintain accessibility and convenience. And convenience is a big part of the overall experience that customers are looking for. If too much is being asked of your customers they may abandon your business before ever stepping through the front door.

Attracting new customers, building loyalty and running a variety of continuous promotions requires a heavy investment of time and energy. An automated marketing strategy allows you to focus on what you do best—providing great craft brews and exceptional service. Capture your guests at every touch point with pre-scheduled communications, photo push messaging, social media posts and more. Utilizing a robust app for your business allows you to capture more first-time guests, make your regular guests feel like insiders and remind customers who haven’t visited with you in a while why they should consider returning.

Utilizing technology does not necessarily equate to an entirely new business plan. However, it does mean that you now have an option to execute your current plan better, while also being able to expand and grow them quicker. An example of this is identifying those efforts that you may currently be doing with email, paper punch cards or in-house only promotions and taking that to a mobile and digital platform as a means to obtain more control and visibility for everyone involved – customers and owners alike.

An app has the ability to act as your personal, day-to-day assistant. If you don’t have the time or money to hire and manage another employee, it might be time to look at technology as the employee that never gets tired. With it you can send your loyal customers birthday wishes, offers and alerts, giving them the personalized experience they prefer and deserve. With an automated marketing strategy, you can create a series of push notifications triggered by their activity. Notifications can be sent right away, pre-scheduled or programmed to be delivered in certain scenarios. Either way, it communicates why your business is the perfect option for that moment.

Being social with your media

Customers love to see what is offered before deciding where to go. Show them, don’t just tell them. Instagram and Pinterest are fantastic options for enticing people with tasty-looking and thirst-quenching photos. It’s also beneficial to develop short, unique videos – such as a quick recipe or a behind-the-scenes look at your brewery. And don’t forget to use trending hashtags to increase post visibility. For example, include #happyhour, #newbrew, or #foodielife, along with the name of your craft brewery or bar. All of this will help keep your establishment top of mind with both your regulars and first time customers.

Your customers are always looking online to get ideas when thinking about visiting a new business. To ease this process, make sure that all of your social profiles are up to date and easy to read, as well as portray your business with the correct ambiance. It’s not uncommon for new customers to be hesitant about visiting the unknown. Your social presence needs to provide a compelling reason for them to engage with you. However, never sell your business through a clouded social media lens. Customers expecting one experience based on how your business is represented on social media, only to walk in to something entirely different, will likely result in negatively affecting your business as a whole.

Your social media promotional efforts should also be backed up with an engaging customer-facing website in order to complete the experience. This will further provide your customers with an even better idea as to what they can expect when choosing your business over the competition. Think of a great website as a first handshake, before they commit to visiting your business for the first time. Your website must be mobile friendly so that it can easily be viewed from your phone without distorting the message or making the experience inferior in any way. 

Technology that’s here to stay

This growing trend in technology is a strong reflection as to how business owners are looking to maintain their operations with their distributor – online, expedited, quick-to-answer and respond and capable of addressing all of your needs through a variety of technological channels and initiatives. It would be unfair and, quite frankly, unacceptable, for a distributor to suggest that you engage with your customers through the advancements of technology if they themselves are not capable of providing the same level of service to meet your day-to-day business needs. Technology will continue to impact and affect buyer behavior. This can be seen both from the customers that frequent your establishment, as well as the way that you engage (or want to engage) with them.

Consumer preferences are changing faster than ever, dictating how your business must respond. The distributor that you have chosen to partner with should be in the business of delivering value. When they deliver on value, it demonstrates an understanding of what is truly important. A distributor capable of delivering value and unforgettable experiences is infectious, and it will help you, in turn, deliver unforgettable experiences to your own customers.

A thoughtful and in-the-know distributor should always have the pulse of what consumers want as a means to help you innovate and continually reinvent yourself in order to remain relevant in a highly competitive landscape. When they can adapt and respond with speed and agility, they help you to keep pace, stay relevant and often outpace your competition. Ultimately, their business should be dedicated to helping you succeed with yours, utilizing non-traditional methods to better serve your needs through more interesting and engaging uses of product management, technology and education. While it’s true that people do business with people they like, they also look to do business with the people that are committed and able to execute. Finding a distributor that can serve you better and become a comprehensive, go-to resource for all of your business needs is the end game.

Technology is advancing faster than ever before and it’s here to stay. As a business owner, your digital media strategy should be flexible to more easily respond to what does and doesn’t work. Discover how your customers found out about you to gauge where they’re spending time online in order to maximize those platforms. Cross-link all of your online profiles and link your website to your mobile app and social media pages. In doing so, you’ll be able to strategically cover more ground while building a base of followers on their preferred platform. The end result will likely translate to an increase in new traffic, while also building upon an established foundation of regulars.

Contact Robert at (262) 523-6210 or email him at rfrost@boelter.com.

Robert Frost headshot