Category: General

Five Bucks & a Bag of Chips

Cyndi

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

crystal ball and tarot cards

By Mark Colburn

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

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

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

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

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

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

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

The Sam Adams Haunted House

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Happy Halloween!

About the Author

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

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

shinerunner@comcast.net

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

Beyond the Container

Cyndi

Understanding Packaging and Its Subproducts for Modern Breweries

Earthrings showing 3 six pack carrying containers for beer cans

Photo Credit: Earthrings

By: Alyssa L. Ochs

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

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

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

Primary Packaging Basics: Core Components for a Strong Foundation

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

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

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

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

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

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

Packaging Subproducts: Behind-the-Scenes, Yet Crucial

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

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

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

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

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

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

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

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

Evolving Automation: Equipment Innovations for All Sizes of Breweries

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

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

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

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

Brewery Packaging with Sustainability in Mind

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

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

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

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

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

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

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

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

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

Final Thoughts and the Future of Beer Packaging

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

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

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

Expand Your Beverage Portfolio with Craft Spirits

Cyndi
craft distillery still equipment

By: Kris Bohm of Distillery Now Consulting

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Ideas for a Successful Summer Season

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

By: David DeLorenzo, Bar and Restaurant Insurance

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

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

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

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

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

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

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

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

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

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

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

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

For more information visit…

barandrestaurantinsurance.com

The Financial Impact of a New Administration on the Beverage Industry

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

By: Raj Tulshan, founder of Loanmantra.com

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

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

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

Inflation

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

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

Rising Labor Costs

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

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

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

Tariffs

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

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

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

Tax Changes

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

State of Currencies

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

Cryptocurrency

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

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

Federal Budget Cuts

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

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

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

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

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

How to Elevate Your Products with the Best Flavorings

Cyndi
a man and two women around tubes and bottles

By: Alyssa L. Ochs

There will always be something appreciated and cherished about beer that tastes like beer and spirits that remind us of what we’ve always known and loved about them. However, there’s also significant value in the unique and creative additions of flavorings to our favorite craft beverages.

  Flavorings have the potential to help breweries and distilleries stand out in a crowded market if they are willing to experiment with classic flavors and emerging trends. Whether you use fruits, spices, herbs or aging techniques, flavorings offer endless possibilities to cater to consumer tastes and help beverage brands establish distinct, memorable identities.

To learn more about the possibilities of flavorings in the modern craft beverage industry, we connected with two prominent leaders in this field: Beck Flavors and Mother Murphy’s Flavors.

The Evolving Role of Craft Beverage Flavorings

  With thousands of breweries and distilleries operating across the country, distinguishing your business from the competition has never been more crucial. These days, running a successful craft beverage operation requires considerably more than just making a great product. Customized flavors offer brewers and distillers opportunities to create a unique identity while showcasing regional tastes and catering to a local customer base.

  Nick Palank, marketing manager for Beck Flavors, told Beverage Master how his company’s primary focus is collaborating with brewers to develop tailor-made flavor profiles that align with their brand identity, resonate with their target audience and leverage emerging trends.

  Beck Flavors is a family-run business that has been around since 1904, creating custom flavors for over a century. Based in Maryland Heights, Missouri, Beck Flavors serves various food and beverage sectors and prioritizes environmental sustainability and community engagement in the local St. Louis area.

Palank referenced recent Brewers Association statistics showing that fruit-forward beers account for a 25 percent increase in new craft beer releases. This indicates an increasing demand for refreshing, bold and complex flavors. He also pointed out how breweries are interested in creating desert-inspired beers with nostalgic and indulgent flavors while also pushing boundaries with tea-based fermentation and botanical infusions. Meanwhile, there is substantial interest in seasonal flavors and limited-edition releases, perhaps even collaborating with local chocolatiers, spice companies or coffee roasters. These efforts have the potential to boost taproom traffic as consumers embrace the changing seasons lean into shifts in their drinking preferences. 

  “With 65% of craft beer consumers actively seeking new flavors, breweries that embrace this trend have the potential to drive significant engagement and brand loyalty,” Palank said.

  “Our strategy combines market research, sensory testing and expert formulation to help breweries develop beers that aren’t just flavorful but also commercially successful,” Palank shared. “The craft beer industry thrives on creativity and innovation, and with the right custom flavors, microbreweries can craft not just a great beer, but a signature drinking experience that sets them apart from the competition and keeps customers coming back for more.”

  Beyond just traditional beer, Beck Flavors is also working with breweries in the ready-to-drink (RTD) and non-alcoholic (NA) spaces.

  For example, flavorings add depth and richness to NA beers so they don’t fall flat or taste undesirably simplistic. Lower-alcohol, session-style beers can incorporate flavors to entice casual drinkers looking for 4 percent ABV or less options. Meanwhile, hard seltzers, hard teas and kombuchas with added flavorings can expand RTD offerings and give consumers more choices based on their curiosities or wellness goals.

Current Flavoring Trends

  “We have been creating a lot of indulgent profiles, such as pumpkin cheesecake, and unique fruit profiles, such as clementine flavors,” Al Murphy, the CEO of Mother Murphy’s, told Beverage Master Magazine. “We are always trying to create new flavors for spirits that have never been used in the alcohol and beverage industry.”

  Mother Murphy’s is a family-owned food flavoring business that has been operating since 1946. Murphy family members still own and run the company, which is headquartered in Greensboro, North Carolina. From humble beginnings as a two-man side business, Mother Murphy’s has expanded to employ over 150 people and ship its flavorings to more than 30 countries.

  Murphy said that sweet, indulgent and fruit flavors are all trending right now, based on his company’s experience working with breweries and distilleries. As gathered from consumer preference research, he said their top 10 flavors were the following: mimosa, prickly pear, cucumber, blueberry, sour, rosé, ginger, mandarin/tangerine, blood/red orange and pear.

  To keep up with trends, Palank from Beck Flavors said that his company leverages market intelligence and consumer insights through comprehensive research, trend analysis and data-driven reports utilizing resources like Mintel, Innova, and Tastewise.

  With regard to 2025 trends shaping the beer industry, Palank said, “In the U.S., citrus remains a leading flavor in craft beer, with tropical flavors also showing high growth momentum. These flavors are approachable and familiar, making them a safe yet exciting choice for consumers. Microbreweries can experiment with combinations like pineapple and orange peel to create refreshing, vibrant beers. With consumers seeking globally inspired experiences, flavors like yuzu, calamansi, prickly pear and lychee are giving beers a fresh twist.”

  Palank also said that dessert-inspired flavors reminiscent of doughnuts, chocolate, or gelato invoke a sense of indulgence and nostalgia for childhood memories in consumers. Examples of these “special treat” beers include caramel pecan porters and cereal milk IPAs.

  “In Europe, the use of herbs and spices in craft beer is on the rise,” Palank said. “This trend is driven by the desire to enhance sensory experiences and flavor intensity. Pairing herbs with citrus flavors is particularly popular, offering a refreshing twist that appeals to consumers seeking novel taste experiences. Ingredients like cinnamon, hibiscus and Sichuan peppercorn are adding complexity to beer profiles.”

  Another interesting trend is hybrid beverages, which includes unique creations like tea-inspired beers, cocktail-inspired brews and coffee-infused lagers that push flavor boundaries to the next level.

How to Create Custom Products with Flavorings

  The process of getting started with flavorings involves reaching out to an expert company like these two highlighted here to discuss your motivation to try flavorings and devise a customized solution based on your company’s unique beverages. Both Mother Murphy’s and Beck Flavors offer the opportunity to request flavor samples to help you narrow down your options.

  “We don’t just create flavors — we help breweries craft memorable drinking experiences that set them apart in the industry,” said Beck Flavors’ senior applications manager and technical sales representative, Adam Berge. “By combining data-driven insights, expert formulation and meticulous testing, we partner with brewers to bring bold, innovative flavors to life, ensuring that every beer tells a story and captivates consumers.

  Berge went on to explain how his company conducts market intelligence and sensory research to identify trends and emerging consumer preferences before diving into flavor development. Once they identify a flavor direction, the research and development team takes over to develop a formulation that integrates with the company’s beverage style.

  “Once a flavor is developed, we offer breweries a sensory testing process to ensure that the final product delivers the intended aroma, taste and mouthfeel,” Berge said. “Sensory testing allows us to fine-tune intensity levels, identify any unexpected interactions and make necessary adjustments before full-scale production.”

  He emphasized the importance of ensuring a flavor is scalable and consistent across every batch. Successful flavors must perform reliably during all conditions to maintain a signature taste without confusing fluctuations from one drink to the next.

Considerations About Using Flavorings

  Al Murphy from Mother Murphy’s shared with us that one important consideration is to decide between natural or artificial formulations of flavorings for your beer or spirits.

  “Most companies use natural because they would like to have ‘natural’ on the label,” he explained. “Typically, artificial is cheaper, and you can use less but many companies don’t want ‘artificial’ on the label.”

  Murphy also mentioned a common mistake craft beverage producers make with flavorings.

  “Some distilleries don’t know how to use flavors in conjunction with acids and sugar,” he said. “They might know how to distill a spirit or blend a spirit, but they need a flavor partner that can help them create a flavored spirit product.”

  Beck Flavors’ principal flavor chemist, Rick Gibson, emphasized that craft beverage producers must integrate new flavors into their recipes to ensure balance, compatibility, stability and consumer appeal.

Gibson has nearly 50 years of flavor experience and is one of only around 400 Certified Flavored Chemists in the world.

  Gibson explained the importance of achieving the right balance between a beverage’s existing profile and a new flavor. For example, too much of any ingredient can overpower a beer, making it overwhelming or one-dimensional.

  “To prevent this, breweries should consider how flavors interact at different stages of the brewing process, including fermentation and conditioning,” Gibson said. “A well-integrated flavor should enhance rather than dominate, allowing drinkers to experience a harmonious blend of flavors with each sip. Our team at Beck Flavors works closely with brewers to fine-tune intensity levels, ensuring that every ingredient plays a complementary role in the final product.”

  There is also the crucial issue of pairing the right flavors with the right style of beverage. Some flavors naturally complement beverage profiles or are better suited to them, such as a bright citrus flavor paired with a hazy IPA or a coffee flavor paired with a porter.

  “Additionally, breweries should consider how flavor perception changes based on factors like alcohol content, body and carbonation levels,” Gibson said. “A highly carbonated saison may amplify herbal or floral notes, while a high-ABV imperial stout can support rich, dessert-inspired flavors like chocolate and maple. At Beck, we help breweries identify the best pairings based on their beer style and brand vision, ensuring that new flavors feel intentional rather than forced.”

  Beverage producers should consider how flavors impact shelf stability and product performance over time. Gibson noted that certain fruit extracts lose their vibrancy after a while, yet cinnamon and nutmeg become more pronounced as beverages naturally age.

  But ultimately, beverage producers must keep consumer preferences in mind at all times when implementing new flavors. Requesting in-person feedback and online reviews from loyal customers is an effective way to gauge interest in new flavored beverages and assess consumer behavior.

  “Understanding what drinkers are looking for — whether they’re adventurous craft beer enthusiasts or casual consumers seeking familiar, approachable flavors — is key to developing a product that sells,” Gibson said.

Hiring the Right Distillery Consultant

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

By: Gerald Dlubala

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

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

Kindred Spirits Consulting: Stephen Tomori (Lead Photo)

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

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

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

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

A Consultant That Fills Your Needs

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

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

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

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

Find Your Consultant

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

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

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

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

Working with Kindred Spirits Consulting

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

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

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

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

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

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

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

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

The Unintentional Distillery Consultant

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

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

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

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

Working with Distillery Now

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

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

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

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

Distillery Now Brings Value and Experience

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

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

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

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

  

Consumer Awareness Shows an Emerging Regenerative Market

Cyndi
barista pouring beer into a glass mug from a brass tap with wooden handles

By: Erik Lars Myers

The beer pours a rich amber color, crystal clear, with a stark white fluffy head. Warm caramel-sweet malt aromas greet your nose from the glass, counterpointing the earthy hedgerow bouquet of East Kent Goldings hops. It is Reset ESB, a drinkable, classic, English-style ESB. It is also the world’s first Regenfied™ Certified Beer.

  The vast majority of the malt in this beer brewed at Fullsteam Brewery in Durham, NC is Regenfied™ Southern Select, a 2-row base malt created Riverband Malt House in Asheville, NC, the first – and currently only – malt house in the world to malt Regenified™ Certified barley. This particular batch of barley is Avalon, a malting barley created at Virginia Tech’s Small Grain Breeding Program specifically for farms in the South. It was grown at Harbor View Farms, a Tier 3 Regenified™ Certified farm in Rock Hall, MD. That traceable pathway is one of the main considerations toward Fullsteam’s use of the Regenified™ seal.

Becoming Regenified™

  Regenerative farming is a philosophy that covers a wide range of farming practices. At its base, regenerative agriculture is a method of farming that focuses on practices that are meant to create and maintain healthy ecosystems and preserve sustainable farmland for future generations. It prioritizes soil health, reduces reliance on synthetic herbicides, pesticides and fertilizers, and nurtures the land as well as the people who use it.

  Over time, farms that use regenerative practices have shown a long-term increase in yield benefits in their farmland. These farms reduce their carbon footprint, conserve water, and grow healthier food. They also safeguard the long-term viability of their farmland in the form of improved biodiversity, reduced erosion, and a reduction in local water pollution. This is achieved through careful cover-cropping, rotational grazing of livestock, no-till farming, and a wide variety of other practices.

  But it isn’t easy. The short-term switch from conventional farming to regenerative farming can mean investment in different tools, practices, and labor. It can also mean a reduced yield while the switch is being made, a daunting proposition in an industry with already razor-thin margins.

  That is one of the reasons that the Regenified™ certification works a little differently than other certification programs. Rather than simply working to meet a target – the “if you meet these documented conditions then you qualify as Certified” method – Regenified™ exists in progressive tiers in a way that helps farmers build toward a regenerative farming future, setting goals over years to work in new processes, increasing their regenerative practices while building a better and stronger future for their farmland. In turn, the Regenified™ Seal helps manufacturers and end consumers identify the products made with these farming practices.

  A 2024 consumer product report by Regenfied™ shows an ever-increasing consumer awareness of “values-based shoppers.” Their report shows an “Emerging Regenerative Market” whose consumers are willing to pay more for regeneratively farmed products and seek them out when they can, noting that they are “especially interested in supporting regenerative agriculture across core product categories such as fruits and vegetables (83%), eggs (60%), dairy (56%), meat (52%), and grains (48%).”

  For companies like Riverbend Malt House and Fullsteam Brewery, it means putting their money where their mouth is.

Regenified™ Manufacturing

  “Regenified™ malt is crucial to our triple bottom line approach,” says Brent Manning, one of Riverbend Malt House’s founders and Chief Strategy Officer. “We’ve always prioritized people, planet, and profits. When we started over a decade ago, we really wanted to focus on organically or sustainably farmed barley. At the time, mother nature had other plans for us. After an early difficult growing season we had to choose between conventionally farmed grain and keeping the business open, but now we have the opportunity to refocus on a mission that, at its core, is vital to who we are.”

hand holding a handful of grain

For Fullsteam Brewery, it was a no-brainer. “It really fits into our core values and mission statement,” notes Jon Simpson, Fullsteam Brewery’s Director of Brewery Operations and Innovation. “Supporting Southern agriculture and what we think of as ‘the Southern beer economy’ through our purchases has been at the heart of Fullsteam’s mission since its beginning. Investing in a specifically southern grain created by one of our local partners that supports the future of farming in the South is a perfect fit.”

  Over the past 15 years, Fullsteam has acted on its mission to the tune of approximately $1 million of locally sourced ingredients. Riverbend is one of their primary local partners, and so the opportunity to create a series of beers centered around this malt was serendipity.

  For both of them, fitting Regenified™ certification into their process isn’t very much of a disruption and in many cases flows directly with how their operations are designed, which is primarily based around traceability and lot tracking. Traceability, something that larger breweries or maltsters may have to create specific processes for, is often just business as usual for small- or mid-sized breweries.

  “We still receive all of our grain in super sacks,” Manning says, referring to the 2000 lb totes that bulk grain is shipped in. He notes that lot tracking to a farm, or even a field level, might be something that larger maltsters might have an initial issue with, but that it’s part of Riverbend’s normal operations. Since the outset, part of their process has been tracking individual strains of barley from different farms and regions because those different strains and regions have significant flavor profile differences. They pass along that information to their brewery and distillery partners to help govern ingredients choices but also as a means for differentiation.

  Similarly, at Fullsteam, tracking the use of local ingredients in each beer has been a mission for so long that for Simpson, keeping this particular supply chain separate is just a normal day-to-day operation. “The biggest change has been making a more detailed note in our brewing logs noting the exact lot number and source of the grain.” Of course, making a well-balanced beer often means using more than one type of malt, but for the Reset line, 100% of the base malt for the beer is Regenified™ making up 80%+ of the grist. The rest of the malt is sourced locally from one of North Carolina’s three malt houses.

Regenified™ Value

  For both Fullsteam and Riverbend, the decision to use Regenified™ malt is one of prioritizing their own values and recognizing that some purchasing decisions are not driven solely by price but by the greater impact it might have in the world.

  “They’re small steps,” Simpson says, “But they add up. You take all the small steps you can and know that at the end they’re having a larger impact together.”

  Manning notes that for larger businesses – he specifically mentions large distilleries – locally grown, regeneratively farmed grains are way to significantly impact their supply chain-based carbon emissions. But the same is true for every size of food or beverage manufacturer. Whether it bears out to more sales in the market or not is still up in the air, but for these producers it’s all part of their larger strategy anyway.

  “Does it get traction?” Simpson mused, “Hard to say. But it’s definitely attractive to certain customers that are important to us. Retail partners like Whole Foods, among others, are more apt to focus on environmentally conscious manufacturing and ingredients. The Regenified™ Seal makes it easier for customers to recognize that value on the shelf. And that’s worth it as far as we’re concerned.”

Fullsteam Brewery’s Reset ESB: https://www.fullsteam.ag/beer/reset-esb

Riverbend Malt House’s Regenified™ Southern Select: https://riverbendmalt.com/malt/regenified-southern-select/

Regenified™ 2024 Consumer Report: https://regenified.com/2024consumerreport/

About the Author

  Erik Lars Myers is an award-winning professional brewer and lover of beer. He has written two travel guides about beer and written and edited multiple books about homebrewing.

Can AI Boost Beverage Marketing Strategies?

Cyndi
futuristic robot with chin in hand

By: Hanifa Sekandi

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

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

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

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

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

AI & Market Research

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

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

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

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

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

Streamline Your Marketing Plan

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

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

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

AI Can Automate Social Campaigns

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

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

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

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

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

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

Make Your Own Ready to Drink Cocktails

Cyndi
cans of different ready-made cocktails

By: Kris Bohm: Owner of Distillery Now Consulting LLC.

Canned cocktails are the largest growing category in sales of spirits in the past 4 years. Canned Cocktails also known as RTDs (Ready to drink cocktails) are hot right now! The sale of drinks classified as RTDs grew 24% from 2022 to 2023. (Neilson) There are many ways to create canned cocktails and an abundance of variety in flavors of canned cocktails.

  Starting with a product concept all the way to creating a finished product is an immense and difficult adventure but well worth the work, when done right. This article will discuss in detail one particular way of producing RTDs and cover all aspects of creation and manufacturing. Along the way I’ll also share the lessons learned from launching ready to drink cocktails. Let’s learn about canned cocktails!

  As a beverage alcohol producer if you are struggling to grow it may be time to go on the lookout for the next trend in beverages to grow your business. If growth is a good measure of new trends then RTDs are the answer. When distilleries first started producing RTDs several years ago there was a sense of uncertainty as to whether RTDS would be a short lived trend. This uncertainty came from several places. There were horror stories of recalled products from cans exploding (Trust me i was there). Distributors said the price point was too high for canned cocktails compared to beer and retailers were not willing to give RTDs space on their shelves.

  Flash forward to today and canned cocktails are thriving and selling at a much higher price point per unit than beer. Now we do not want you to have to recall a product or having exploding cans so before you jump right into making your own RTDs let’s talk about how to develop a product.

  When it comes to manufacturing RTDs there are hundreds of aspects that must be given consideration in preparation to create a successful product. If your goal is creating an RTD then start first with answering all the questions we have outlined before you commercially package your product. Below is a list of canned questions that you should answer.

•  What type of cocktail do you want your RTD to taste like?

•  How boozy do you want it to be?

•  Is the product highly carbonated, lightly carbonated or noncarbonated?

•  What ingredients will be utilized to flavor the RTD?

•  If the product is sweetened what kind of sweetener will you use?

•  Will you use juice or other natural ingredients and are they readily available?

•  Is the formula for the product shelf stable?

•  How long will the product last before it expires?

•  Is refrigeration needed to store the packaged product?

•  How will the product be branded and marketed?

  It is essential to answer these questions before you get ahead of things and package a product. RTDs are not the same as beer or distilled spirits. It is essential to be diligent and give careful consideration to the product formula, flavor, cost, packaging process and shelf life before a product is released. Spending a considerable amount of time in product development and quality assurance testing will save you money and headaches. Good product development can avoid problems as your project moves from concept to a finished ready to drink product. 

  One of the critical steps in product development is selection of the packaging itself. Once a product formula is developed one must give consideration to the container the product will go into. Whether canning boxing or bottling selection of the packaging and material the packaging is made from is key. The package will dictate the equipment needed, the label on the package and many other factors that will require big expensive decisions. Cans are the most common and affordable choice for packaging. Cans come in a variety of sizes, shapes and different liner types. A second option for packaging a product is aluminum bottles. Aluminum bottles cost more than cans but they are unique and can provide differentiation to stand out in the vast sea of canned beverages. The actual volume of the packaging must be selected early, as part of the TTB formula and label approval process must include this information.

  There are a multitude of options for packaging, it is essential to make sure the container and the equipment are suitable for a product before you buy those items and start manufacturing products.

  When it comes to making an RTD one of the biggest expenses is the packaging line. This is the equipment that rinses, fills and seals the containers holding your product. If you do not already have a canning or bottling line there are numerous vendors who build equipment for packaging RTDs. Lets cover the key components of equipment that are must have tools to take distilled spirits and transform them into canned cocktails. Below we will discuss all the equipment and steps needed to produce a carbonated canned vodka soda.

  The first essential tool is water filtration. A water filter critical to produce clean and sterile water that tastes good. Water which will make up the largest ingredient in an RTD so it must have excellent flavor and a water filter will help control the flavor.

  The second tool needed is a brite tank and a chiller. The brite tank is used to store the product before it is packaged. The chiller provides the cooling capacity to reduce the temperature of the product down to ideal carbonation temperature in the brite tank.

  To carbonate a beverage effectively it must be cold, once the product is cold carbon dioxide is added to create carbonation. From the brite tank the product is transferred to a packaging line to be put into cans or bottles. A packaging line is a complex piece of equipment that handles the movement of the liquid and packages in sequence to clean the package, purge it to remove oxygen, fill with liquid, then place a lid or cap on the package and then seal it.

  Packaging lines can vary in speed from producing a few units per minute to hundreds of units per minute. Selecting the right packaging equipment first requires that the packaging be selected and tested, only then can the packaging line be picked out.

  If buying a full set of packing equipment is not the right step for you there are alternative options to consider for producing RTDs. The alternative path to producing a RTD is to partner with mobile canning companies that can package your product for you. Throughout North America there are several companies who offer mobile canning services.

  A mobile canner will come to your facility with all of the equipment needed to quickly and efficiently package your RTD. Mobile canning is an excellent route to take if your business is looking to test out a concept but might not have the space and or resources to install packaging equipment. When working with a mobile canner it is critical to still put a product through quality assurance testing before packaging and selling the product. It is important to note that with mobile canning it can add significant cost per unit and consideration in how the product is priced will play a role in working with a mobile canner.

  The upside of utilizing mobile canning is reduced initial investment. With a mobile canner there is no major capital investment in equipment required to get started which means you can start canning cocktails sooner rather than later, with less money invested.

  There are many reasons RTDs are taking the market by storm.Consumers have become more health conscious of what they drink and low calorie spirit based drinks fit that bill. RTDs are convenient and the perfect choice for those who want an easily accessible drink alternative to beer or wine. RTDs are far more portable than glass bottles and the accessories needed to make cocktails. Creating canned cocktails and selling them can be a challenging endeavor.

  Without question there is strong potential for your RTD to succeed if done well. Developing a successful RTD will certainly be a challenging and serious project but with good equipment and knowledgeable people your concept can be brought to life. Sales of canned cocktails are growing tremendously year over year.

  Take the leap and join the revolution by producing your very own RTD. Canned cocktails are opening doors to serve cocktails in places that spirits cannot be found and a RTD can become the key product to grow your beverage business.

Kris Bohm - Owner of Distillery Now Consulting

Kris Bohm is the owner of Distillery Now Consulting where he is the head unicorn wrangler. Bohm has also developed some mighty tasty and successful RTDs. He can be reached at distillerynow@gmail.com