Category: Mead

Is it Time to Elevate Your Beverage Brand

Cyndi

Even Legacy Beverage Brands See the Value in a Brand Refresh

banner sign says rethink revise rebrand

By Hanifa Sekandi

Everyone is doing it, changing their brand to look more modern or something fresh to appeal to a new consumer base. One could argue that social media made them do it. It is easy to feel the need to compete with the social media engine that never slows down. What beverage is everyone talking about now? Not your beverage, but why? This can be frustrating when you know that you offer an excellent product. At times, it seems hard to cut through the beverage marketing noise, but it is possible. As you think of ways to do so, you may have considered a rebrand. Yes, there is always room for improvement. No matter how great your brand may be performing, there is always that one thing that can boost awareness and increase sales.

  Even legacy beverage brands are seeing the value in a brand refresh every few years. If you are a new brand, a rebrand should be the last thing that crosses your mind. Remember, nobody knows about you just yet, and until everyone does, consider yourself in the clear. This does not mean that you should not develop compelling marketing strategies. It simply means that you still must introduce yourself to your audience. This may take months to years, but you must stay consistent to gain brand familiarity. A slow rise to the top is sustainable. If in doubt, look at legacy brands; most of them have steadily climbed their way into the elite beverage club. Then think of brands that had their glory in the sun, fifteen minutes of fame, and now they are simply an afterthought.

When is it Time  for a Rebrand?

  Before you start, ask yourself, does your beverage brand need a refresh or a rebrand? A rebrand, in most cases, is a complete overhaul of your existing brand. A refresh is when you add new elements to your brand while maintaining brand familiarity. A refresh tows the line, whereas a rebrand pushes limits; it is a business risk that may benefit or hurt your brand eventually. Either way, it is a roll of the dice. Will the odds be in your beverage brand’s favor? You will not know unless you try.

  For some brands, a substantial risk is not worth it, companies would rather do a brand refresh that provides new energy to their existing branding without too many risky changes. Other brands choose to undergo a rebrand, and this strategy often achieves their intended results. A rebrand often works when brands are launching a new product line. A change in ingredients of an existing beverage may prompt brands to overhaul their previous branding, highlighting that everything is different, not just the addition of cleaner ingredients, but also new sustainable packaging. For cases like this, even a logo and color change may be appropriate. Keep in mind that substantial changes also require marketing efforts to support them. You need to inform your consumer that things are different and here is why. It is an unveiling of a new product, an out with the old, in with the new moment.

  The way your team approaches brand development should be consistent. Before hiring an agency, be clear on your goals. Remember, not all great ideas are great for your brand. Also, do not erase what makes your brand familiar or stand out. Particularly, know your brand voice. A couple of notable examples of gentle rebrands that fall in line with more of a brand refresh are Pepsi and Fanta.

  Both refreshes perfectly married the old branding with the new and it was so seamless that unless you are a die-hard enthusiast of either beverage, you would not have noticed. The changes were subtle yet bold. You may also notice that they used a variation of their existing brand colors and slightly altered their logos.

  Just a little but more than enough is a great approach to rebranding, particularly for legacy brands.

  Let us say you are not a legacy brand, still relatively new, but have built a strong consumer base. Should you rebrand or should you refresh? Other than increasing sales, what is your end goal? Do you feel that a rebrand will further solidify your beverage brand as a top contender, joining ranks with a legacy brand? Are you the next Heineken? Or the next best top-shelf tequila every bar should carry? Will you lose your existing consumer? Lastly, is your brand familiar enough that making these significant changes will not confuse people who purchase your beverage? A brand refresh might be a better course of action for your brand if you are less than 10 years old.

  What does a refresh entail? Adding new prints or graphics to your cans or bottles. Hopefully, when you selected brand colors, you chose different variations of green, for example, or blues that sit perfectly within your color wheel. It is okay to add pops of colors that are not signature to your brand. But the integrity of your branding should remain intact. 7Up does an excellent job using different variations of green that are signature to their brand.

The Notable Introduction

  It may be time to reintroduce yourself to existing and potential new consumers. This introduction is a fantastic way to tell your story, remind your consumer why they support you and to highlight your brand to a new audience. Consider this a reintroduction, also as an introduction. Have you ever attended an event with people you know and people you do not know? The assumption is that you do not have to introduce yourself because there are people there who know you, and the rest will fill in the blanks.

  The reality is that people forget things; they forget the details about people they meet regularly. I am sure you have met someone at an event and walked away and forgotten their name. You know the face but cannot seem to recall their name or pertinent details about them. If you are in beverage sales, then you will understand the value of these details. This is how every brand should view itself as a familiar face but an unrecalled name.

  Never assume that people who consume your beverage have had enough of seeing you highlight the unique components of your beverage and the cultivation process. Seeing every day as an opportunity to introduce your brand, like you are the new kid on the block, will force you to keep things fresh. Just like saying hello to a friend you care about never gets old. Saying hello to your audience and reminding them who you are and what you bring to their tastebuds should be embraced.

Are You Ready to Elevate Your Branding?

  Elevating your brand should not be complex. There are simple and attainable ways to highlight your beverage without doing too much rebranding. It is important to be creative. Think of ways to highlight what you already have. Isn’t it funny that people search for vintage items from their favorite brands? Do not lose sight of what is already loved by your audience. Also, do not lose your creative spark.

  How can you market this beverage, which your team has already beautifully branded? Brainstorm hundreds of ways to tell your beverage’s story with your existing branding. If the opportunity arises to do a refresh or rebrand, it should feel like the next step to brand elevation rather than a thirst simply to compete. Do not chase your competitors’ story or their wins; instead, stay in your lane and run your race and celebrate your wins. It is easy to feel pressured to make changes to your branding when you see other brands do it.

  Remember, you cannot see their process or the budget they have allocated for this. The majority of companies plan; therefore, what looks like a sudden rebrand may have gone through years of development. It is best to set long-term brand development goals. In the next 5 years, you may want to adjust the logo or brand colors. This will give you enough time to refine your branding and curate a rebrand that is impactful and embraced by old and new beverage enthusiasts.

A Closer Look at Celebrity Brands of Craft Spirits & Beer

Cyndi

By: Alyssa L. Ochs

Actors, musicians and other celebrities love craft beer and spirits just like the rest of us. Yet the difference is that they often have the means, resources and connections to make significant investments in the industry. An increasing number of famous individuals have been getting interested in the craft beverage business and putting their names onto labels of products they stand behind or perhaps have even helped create.

  Here’s what the celebrity craft beverage industry looks like right now, major players in this field and what there is to look forward to in the future.

Celebrity Involvement in the Industry

  Celebrities take a step away from their typical work to get involved with craft beverages for various reasons. Some have a true passion for the craft, while others are in it for the money or just looking for more exposure and additional ways to promote themselves. While some celebrities learn about the production process and engage in making beer and spirits themselves, others do little more than attach their name to a brand for cross-promotional purposes.

  Either way, celebrity-brand craft beverages are often unique because of their higher price tags and limited availability. Some celebrities use their beverage-related profits to benefit charities, and others use their star power to launch tasting rooms for VIP guests. However, there are unique challenges that come with producing, marketing and selling celebrity craft beverages that other beer and spirit companies may not encounter. For example, a beverage brand may suffer when an affiliated celebrity declines in popularity or is involved in a scandal. Meanwhile, a celebrity’s popularity may be affected if the beverage he or she promotes isn’t received well by the public. Some craft beverage fans believe that beer and alcohol belong to them personally and not the rich and famous. Therefore, they might be turned off by the concept of celebrity affiliations and avoid these products entirely.

  But for people who are loyal to certain celebrities or just curious to try celebrity-affiliated beverages, these are accessible products that can often be purchased in stores and online. More popular beverages are usually found in liquor specialty stores, such as Binny’s and Total Wine & More. But you might have to search for more obscure and exclusive celebrity-brand beverages online through sites like Cask Cartel and Sip Whiskey.

Examples of Celebrity Beverage Endeavors

  From musicians across all genres to television personalities and film actors, a diverse array of celebrities have been making their mark on the craft beverage industry in recent years. Some of these examples were limited editions that are no longer sold, while others are ongoing efforts that are changing the industry one bottle or can at a time.

  For example, actor and comedian Dan Aykroyd co-founded Crystal Head Vodka as a way to introduce additive-free vodka and bring more creativity to the vodka industry. Along with his business partner, artist John Alexander, Aykroyd envisioned a new kind of vodka without unnatural ingredients and has a true passion for the product.

  Several years ago, pop music star Justin Timberlake entered into a co-branded partnership with Sauza Tequila to create Sauza 901 silver tequila. The name 901 references the area code in Memphis, which is Timberlake’s hometown. Timberlake said that he developed a love for tequila after visiting Jalisco, Mexico and seeing the craftsmanship that went into each bottle of the spirit.

  Iconic hip hop legend Snoop Dogg partnered with his friend and co-founder of Trusted Spirits, Keenan Towns, to establish his own spirits brand. Known as the “King of Gin and Juice” because of his famous song of the same name, Snoop Dogg developed Indoggo Gin, which mixes seven premium botanicals with all-natural strawberry flavoring. In the past, the musician has also had marketing deals with the Corona beer brand, released his own rosé wine and made investments in the cannabis industry.

  Meanwhile, actor William H. Macy co-owns Woody Creek Distillers, which is based in Colorado and operates a distillery and tasting room just west of Aspen. Not only has Macy invested in the brand, but he has also rebranded himself as Willie Creeks, an alter ego who is a musician and offers life lessons that ultimately promote rye whiskey.

  Another celebrity who has been involved in the spirits industry is actor Ryan Reynolds. He teamed up with Aviation Gin in 2018 after falling in love with the spirit and investing in the company. Since then, Reynolds has become a co-owner of Aviation Gin and driven the creative marketing for the brand. In recent years, and staying true to the aviation theme, he and the brand have teamed up with businessman Richard Branson to serve the gin onboard Virgin Atlantic and British Airways flights.

  A financial success story in the celebrity spirits industry brings us to the actor George Clooney. The idea behind Clooney’s tequila brand, Casamigos, came about after he and his friend, Rande Gerber, were in Mexico and wanted to find a smooth tequila they could sip all day without the dreaded next-day hangover. This was back in 2013, but the friends still personally tasted every batch of tequila made four years later. The brand exploded in popularity, mainly through word-of-mouth and having Clooney’s name attached to it. In 2017, they ended up selling the brand to Diageo for $1 billion, which made Clooney the highest-paid actor of the year.

  Thus far, celebrities have been more involved in the spirits industry than in craft beer or wine. But to a lesser extent, those markets are also drawing the attention of the rich and famous.

  The late-1990s and early-2000s pop band Hanson, comprised of three brothers who love craft beer (now that they’re old enough to drink it), launched the Tulsa, Oklahoma-based Hanson Brother Beer. They created their own craft beer business in 2013 with their flagship beer, Mmmhops, a 7.5 percent English-style pale ale. Since then, the brothers launched the Hop Jam Beer and Music Festival, collaborated with other breweries to create unique beers and dedicated a portion of their beer-related profits to clean water wells in Africa through a nonprofit organization they created.

  Another celebrity beer collaboration involves The Grateful Dead and Dogfish Head Brewing, based in Milton, Delaware. The psychedelic rock band has been involved with the brewery since 2013 and has worked together since then to create a third version of American Beauty HazyRipple IPA. The band’s “American Beauty” album and famous track “Ripple” inspired the beer, which features the iconic Grateful Dead dancing bear image on the label. However, the band’s involvement with other aspects of the beer production process is limited.

  To show how diverse and widespread the celebrity beverage industry has become, here are some additional examples of celebrities and their affiliated beer and spirit brands:

•    Kenny Chesney – Blue Chair Bay Premium Rum

•    Kendall Jenner – 818 Tequilla

•    Marilyn Manson – Mansinthe

•    Dwayne ‘The Rock’ Johnson – Teremana Tequila

•    Mark Wahlberg – Flecha Azul

•    Curtis ‘50 Cent’ Jackson – Effen Vodka

•    Bryan Cranston and Aaron Paul – Dos Hombres Mezcal

•    Sean “Puff Daddy” Combs – Cîroc Vodka

•    Channing Tatum – Born and Bred Vodka

•    Drake – Virginia Black Whiskey

•    George Strait Código – 1530 Tequila

•    Bob Dylan – Heaven’s Door Whiskey

Considerations and Looking Ahead

  The celebrity-brand beverage industry continues to be exciting because there’s always something new in the works to look forward to. There is always a strong public fascination with rich and famous people, and that trend is not likely to disappear anytime soon. As an increasing number of celebrities enter this industry, the competition increases and drives the demand for superb product quality that goes beyond just a popularity contest of celebrity status.

  Yet there are significant legal considerations that celebrities must keep in mind as they venture into the beverage industry for the first time. Collaborative efforts between celebrities and spirit-makers can take on various forms. These include development deals that give celebrities greater control over the final product and endorsement deals that offer little more than using a celebrity’s name. Other deals involve simply using a famous person’s image to promote an existing brand all the way up to full ownership, in which a celebrity owns both the brand and the means of production.

  Specific state and federal laws separate the roles of beverage producers, distributors and retailers, which can make it challenging for celebrities to navigate if they want to be involved in more than one part of the business. Other issues that celebrities must consider before diving into the beer and spirit industry are background checks needed to obtain alcohol beverage licenses, the age of their target audience, morals clauses in their contracts and endorsement disclosures required by the Federal Trade Commission.

  Alcohol production is proving to be an enjoyable and profitable side gig for numerous celebrities interested in connecting with their fans in new and unique ways. But to get beyond the initial hype and keep craft beverage customers coming back for more, it is time to embrace the spirit of innovation and achieve long-term growth with products able to stand on their own, even without a familiar name and face behind them.

The Indemnification Clause: A Lease Landmine?

Cyndi
man typing lease agreement contract
Lease Renting Contract Residential Tenant Concept

By: Brian D. Kaider, Esq.

Most breweries and distilleries are built on leased property.  Negotiating the lease can be a daunting task, as these contracts are commonly over fifty pages long and full of dense legal language that can be difficult to understand.  Additionally, many landlords have “standard” leases to which they expect the tenant to agree with minimal changes.  Aside from definitions of rent and the duration of the lease, many tenants simply accept the remainder of the lease, as is.  More savvy tenants may negotiate issues such as the right to penetrate walls or ceilings for equipment ventilation, the use of outdoor space/common areas, or the state to which the premises must be restored following termination of the lease.  But, there is a section in virtually every lease that is typically ignored and has important consequences: the “indemnification clause.”

What is an Indemnification Clause?

  In the simplest terms, an indemnification clause identifies who is responsible if a third party (e.g., a customer) is injured on or around the leased property.  Most often, the injury refers to a physical injury, such as when a customer slips and falls on a wet floor.  The language of the clause typically provides that in such a case, if an injured customer sues the landlord as a result of the fall, the tenant agrees to compensate the landlord for any expense associated with the claim.  This makes sense, because the landlord cannot be expected to supervise every action of the tenant and if the tenant allows a hazardous condition, like a wet floor, to exist, the landlord should not be held responsible for the tenant’s negligence.  Of course, circumstances are often not as simple as this example and there is a lot of gray area in these clauses that may not be immediately apparent.

  After reading this article, it may be tempting to try to negotiate taking the indemnification clause out of the lease entirely.  First, it is unlikely any landlord would agree to the deletion.  Second, it would actually cause more problems that it solves.  Absent the indemnification provisions of the lease, the landlord could still file a legal claim against the tenant under a variety of legal theories to recover any damages they suffer as a result of the third-party claim.  The better course is to negotiate the terms of the indemnification clause to minimize exposure of the tenant and ensure that the terms are clear and unambiguous.

The Guts of an Indemnification Clause

  The typical indemnification clause is composed of very long sentences with multiple subparts that make it difficult to even read, much less understand.  The following is a breakdown of some of the key terms.

  Definition of the Parties – “Landlord Parties” and “Tenant Parties,” or similar terms are defined to include each respective company along with their owners, officers, directors, shareholders, affiliates, agents, employees, representatives, etc.  In other words, if an injured customer sues the owner of the landlord company, this definition includes the owner as an indemnified party, just as if the customer had sued the landlord company, itself.

  Required Actions – Every indemnification clause will use some or all of the following terms: “indemnify,” “defend,” and “hold harmless.”  While at first glance these terms would appear to mean the same thing, they are very different and which terms are used has important consequences.  In particular, “indemnify” and “hold harmless” seem similar and, in fact, the differences between them varies from state to state.  In general, “hold harmless” means that the landlord will not be held liable for any injuries or damages caused by the tenant.  In other words, if the tenant is sued by an injured customer, tenant will not blame the landlord or try to bring the landlord into the case as a separate defendant.  “Indemnify,” on the other hand, means that if the landlord is sued by the injured customer, the tenant agrees to reimburse them for costs incurred as a result of the lawsuit.  “Defend,” however, means that tenant is responsible for defending the landlord from lawsuits.  That word in the clause should then trigger other questions, such as, who chooses the counsel to defend the landlord? Does the landlord have the right to approve the proposed counsel?  And what happens if there is a conflict of interest between the landlord and tenant being represented by the same counsel?  Those issues should all be addressed in the indemnification clause.  If the word “defend” is not in the clause, though, that means the landlord is free to choose its own counsel to represent them and tenant is still responsible for the landlord’s legal fees, meaning tenant may be paying two different law firms to fight the same case.

  Scope of Covered Claims – The clause should have some description of the types of expenses that are covered.  In some cases, it is extremely broad, such as “any and all costs suffered by or claimed against landlord, directly or indirectly, based on, arising out of, or resulting from tenant’s use and occupancy of the premises or the business conducted by tenant therein.”  The description may be limited to only physical injury, death, or damage to property.  In some cases, it may refer to “reasonable claims.”  Of course, what is reasonable is a subjective question and likely to spur additional legal battles.  In some cases, the lease may require the tenant to warrant that they do not and will not infringe on another party’s trademark rights.  The tenant should always try to limit the scope of such terms to only “knowingly” infringe or infringing “known” trademark rights.  Otherwise, it would impart on the tenant an obligation to scour the earth for all trademarks that could possibly be asserted against it; an impossible task.

  Scope of Covered Property – It should be clear exactly what property is covered by the indemnification clause.  Often a lease will make a distinction between the “Premises” and the “Property.”  Premises usually refers to the actual unit that the tenant is renting, whereas Property refers to the entire parcel of real estate owned by the landlord, which may include other rented units and common areas.  Obviously, a tenant should not be required to indemnify the landlord against something done by another tenant in a separate unit.  But, common areas are much more tricky.  Often, either explicitly in the lease or by oral agreement, a landlord will permit a brewery tenant to occupy common areas, including parking lots, to serve beer and/or allow customers to eat and drink.  If someone drops a glass in the parking lot and the brewery does not clean it up promptly and a customer is cut by the broken pieces, the indemnification clause should protect the landlord if the customer sues.  But, if the landlord is responsible for snow removal in the parking lot and fails to adequately perform its obligations and a customer slips and falls when getting out of her car, the tenant will want such incidents to be outside the scope of indemnification.  If the clause is not worded carefully, that distinction may not be recognized by a court.

  Carve-Outs for Landlord’s Activity – This raises the broader issue of carve-outs in the indemnification clause for landlord’s activity that contributed to the injury.  For example, if the landlord was responsible for the build-out of the premises and was negligent in the installation of the electrical system, then if a customer is electrocuted, the tenant should not be required to indemnify the landlord against such latent defects.  Even then, the choice of wording in the clause is important.  Some leases only carve out “gross negligence,” “recklessness,” or “willful misconduct.”  In that case, if the injury is caused by landlord’s “ordinary negligence” that does not rise to the level of gross negligence, the tenant would still be required to indemnify the landlord against such claims.  It is worth noting, however, that some states hold such clauses to be against public policy, void, and unenforceable.  Those cases, however, often turn on whether the part of the property in question was under the exclusive control of the tenant.

Conclusion

  Landlords generally provide the first draft of a commercial lease and, not surprisingly, they are drafted heavily in favor of the landlord.  While a tenant’s focus may be on maximizing building improvement allowances and minimizing rent, they should review the entire lease thoroughly, and preferably with assistance from an attorney knowledgeable about the beverage industry.

Often, the landlord will be in a position with greater bargaining power than the tenant, but the law will view both parties to a commercial lease as being sophisticated enough to negotiate the terms of the agreement they consider important.  A court is unlikely to be persuaded that the tenant did not understand the terms or had no choice but to accept them.  The indemnification clause should clearly set forth the responsibilities of each party in clear and unambiguous terms, including: the covered property, the scope of covered claims, what actions the tenant is required to perform in the event of a complaint, and what landlord activity is excluded from the indemnification.

  Brian Kaider is the principal of KaiderLaw, a law firm with extensive experience in the craft beverage industry. He has represented clients from the smallest of start-up breweries to Fortune 500 corporations in the navigation of regulatory requirements, drafting and negotiating contracts, prosecuting trademark and patent applications, and complex commercial litigation.

Trends in Beverage Packaging to Look Out For in 2022

Cyndi
beverage stack in a stall

By: Preston Geeting

Building healthy lives entails nourishing our bodies, both mentally and physically. As such, the beverage industry will continue to be an essential component in improving the health of societies across the globe for as long as we call it home. More presently, however, the products we choose to consume from brands in today’s world often reflect our own personal values.

  Packaging plays a huge role in how impactful a product is on its target audience. Much of the information regarding what is considered healthy or not is often presented on the packaging of consumable beverage products, so their packaging must clearly communicate how it reflects the values of individual consumers. This makes the packaging industry a crucial component of the beverage industry.

  According to MarketWatch, the beverage packaging industry, in particular, is expected to reach a value of $142.28 billion by 2023 at a CAGR of 4.17%, a significant growth from $111.36 billion in 2017. This growth can be credited to the constant demand for groundbreaking, trendy beverage packaging across both industry sectors of alcoholic and non-alcoholic beverages.

  Each sector serves as a quintessential example of the beverage industry’s permanent dependency on the packaging industry, fostering a crucial and long-lasting partnership between the two. Thus, companies must now shift their focus on the ever-changing trends within both industries, while simultaneously aligning with the demands of consumer markets to maintain a competitive edge.

  A product’s packaging often complements its brand image and desired messaging, empowering a brand to sell not merely a product, but a lifestyle to its target audience. In the era of 2022, with headlines abuzz with topics encompassing Web 3.0, the Metaverse, and other digital innovations, product packaging that may be deemed ‘Instagrammable’ or trend-worthy is far more appealing to consumers than those perceived as more “traditional” or mundane.

  In the beverage industry, packaged products often reflect what value the brand can add to a consumer’s life, and how that value complements or enhances their current lifestyle. What makes your product unique enough to stand out on the shelves, compared to hundreds of others, relies almost entirely on the impact of its packaging.

  Additionally, in the luxury beverage space — such as high-end alcohol brands — product packaging is the first element consumers interact with showcasing why the product is desirable. Nightclubs and bars are excellent examples of this. In these settings, the most sought-after alcohol purchased is typically the one that stands out the most and similarly emulates a high-class, sought-after, yet rarely-obtained lifestyle.

  In the case of non-alcoholic beverage packaging, the packaging must communicate why one brand is better than another. This is commonly seen with packaging for companies that sell water. Although water is rarely perceived as little more than a standard beverage, all the details of its product packaging — from visual designs and colors to its sourced location, packaging material, and more — can spell the difference between its sales stagnating or skyrocketing. Other factors listed on the product’s packaging, such as the brand’s sustainability efforts or even the sheer convenience of its packaging, likewise play a key role in targeting specific consumer markets.

  For example, plastic water bottles that have a twist-off top may be less desirable to consumers in comparison to those boasting a sports-bottle style cap. Furthermore, sustainably-packaged water, or reusable metal water bottles, might be more appealing to eco-conscious consumers.

  The trends witnessed within both the beverage and packaging industry are constantly evolving alongside a growing consumer market. These industries must continue to work harmoniously to understand what makes consumers tick. Competition is always intense in the beverage industry, and companies spend immense periods researching competitors, as well as the needs and wants of consumers, to ensure that standards are met through superior packaging.

  Packaging must serve a purpose other than simply protecting products in retail stores or back-of-house storage to be memorable and appealing. The little details are essential regarding a beverage’s packaging, and these seemingly small details can have a significant impact on sales.  With all of this in mind, here are the top ten trends in beverage packaging to look out for in 2022.

1. Biodegradable Packaging:  Biodegradable packaging comprises of biopolymers, which are often found in the cellulose of plants. Since this form of packaging comes from plants, they easily decompose naturally over time in comparison to plastic packaging. Traditional plastic packaging, unfortunately, never decomposes. Instead, it slowly breaks down into microplastics which often wind up in our oceans or, even worse, our food.

  Recently, it was found that microplastics were detected in human bloodstreams. While this hasn’t been directly tied to plastic packaging, single-use plastics — such as those frequently utilized in beverage packaging — have been a significant cause of ocean-dwelling microplastics.

  To combat this, companies like Boxed Water Is Better are taking an active stance in ensuring that their product packaging is decomposable to fight the ever-growing single-use plastic issue; an issue which has also been recognized across various consumer markets. Throughout 2022, expect more beverage companies to release (or, at least, announce) their products being packaged in a similar, more sustainable manner.

2. Internet of Packaging or Smart Packaging:  Internet of packaging, or innovative packaging, comprises the integration of QR codes, smart labels, RFID, and AR/VR into packaging technology. The industry will begin to see the next evolution of packaging personalization through technology, especially QR codes, as adoption rates have soared since the pandemic in 2020.

  An example of this is 19 Crimes, a famous Australian wine company that has become a global phenomenon that works with celebrities like Snoop Dogg to craft fine wines, with each one telling a new story. The bottles of wine are brought to life via AR integration with a mobile app. Once labels are scanned via the app, it tells consumers the tales of notorious criminals through a pop-up video. Several coffee suppliers in the Australian market have begun implementing this method to provide consumers with a story element behind the type of coffee they purchase. This informs consumers who advocate for ethical and sustainable farming practices that the product they purchased aligns with their personal values.

  For another example of this trend, imagine purchasing a bottle of wine as a gift. If the bottle has a scannable QR code, the sender can write a message, and the recipient can see the message enclosed in the app. This eliminates the need to send additional paper cards and advances the gifting process.

  From a design perspective, we will quickly begin to see more minimalistic styles as a direct result of QR codes; if brands design packaging to have a QR code containing all the written content, it eradicates the overwhelming amount of information consumers currently see on packaging. And because product information is often small, making readability an issue, QR codes could also add an element of accessibility.

3. Recyclable Packaging:  Recyclable packaging is similar to sustainable and biodegradable packaging; it helps the environment and appeals to more environmentally-conscious consumers. However, biodegradable packaging merely degrades, whereas recyclable packaging can be reused, making it more sustainable in the long run.

  One new interesting element of recyclable packaging not seen typically is referred to as circular packaging. Circular packaging is forecasted to become an industry trend, as it utilizes a single layer for the packaging, rather than multiple layers, significantly reducing waste in the process. Along with this reduction in waste, circular packaging encourages companies to optimize the materials used in their packaging, maximize and amplify supply, and protect brands while inspiring them to make a significant impact against high-waste packaging.

4. Edible Packaging:  In 2019, London marathon runners made headlines worldwide after news broke that they were provided with seaweed pouches filled with energy drinks, rather than plastic water bottles. This enabled them to consume their water and leave zero waste. While edible packaging may not yet be very common, this example highlights how such a trend can genuinely help niche industries advance and make a difference — both for the environment and consumers.

5. Custom Packaging:  Beverage brands looking to differentiate themselves from competitors are increasingly utilizing custom packaging platforms to meet their needs. These platforms eliminate the physical component of fully-stocked warehouses, offering beverage manufacturers, brand owners, and suppliers with streamlined tools that both align with their marketing initiatives, and efficiently and effectively deliver eye-catching packaging for their products. This simplified process is quickly gaining traction across the beverage industry, providing companies with a one-stop-shop for their custom packaging solutions.

6. Active Packaging:  Active packaging consists of new technological techniques that extend the shelf-life of products, especially in the food, beverage, and pharmaceutical industries. Active packaging works by interacting directly with the packaged product and is designed to eradicate residual oxygen, bringing the product to a level where there is zero-permeation. This trend could lead to increasing the shelf life for beverage products that may otherwise spoil on retail shelves or in warehouses, thus mitigating costs for companies.

7. Packaging Automation:  Packaging automation for the manufacturing of products has witnessed a significant boost through AI. When combined with platforms that can serve as a one-stop-shop for custom and stock package purchasing options, this trend shows how robotics in the packaging industry can turn companies into genuine industry titans like Amazon, which continues to lead in terms of warehouse robotics and automation. Packaging automation enables the e-commerce giant to stay ahead of the game and on top of the retail charts. The same tactics could easily apply to companies in the beverage industry.

8. NFT Integration and Utility:  Non-fungible tokens (NFTs) are one of the fastest-growing trends in 2022, and the beverage industry is leading the way. Penfolds, Glenfiddich, Hennessy, and other luxury brands are now selling NFTs that corresponded to a limited edition physical bottle; the NFT acts as a digital receipt that validates the authenticity of the wine bottles. Many start-up beverage companies, however, are finding ways to leverage this technology with their physical packaging as a marketing tool. From startup Perfy’s customized NFT soda cans, to The Bored Breakfast Club including the famous Bored Apes collection on their packaging materials, NFTs are proving to be a unique way for beverage companies to help promote their brand and acquire a larger portion of consumer markets. 

9. 3D Printing:  3D printing has become cheaper for companies to prototype their packaging designs, materials, and even manufacturing machines. 3D printing boosts packaging designs by removing the typical challenges packaging designers face. Some of these challenges tend to include the need for multiple prototypes (which generate additional waste), fewer resources and materials to source prototypes, as well as reduced costs during the packaging design stage. This evolving trend streamlines the design process, and can enable beverage manufacturers and suppliers to conduct more in-house prototyping with their packaging without the presence of a middle man.

10. Nanotechnology:  Regarding the beverage industry, nanotechnology in the form of nanocoating or nanosensors is most commonly used. Nanotechnology-enhanced packaging reduces microbial bacteria and can help improve the quality of the product, especially in water.

  Overall, each of these trends holds the potential for companies within the beverage industry to successfully outgrow their competitors, and each is deserving of careful consideration when designing packaging solutions throughout the remainder of 2022. In a market that is as ever-changing as it is necessary, it is imperative that brands stay one step ahead, understand the true importance of these trends, and implement them accordingly.

  Preston Geeting is a Co-founder of Packform. Along with Philip Weinman and Peter Williams, he recognized the opportunity to transform the antiquated packaging industry with innovative technology, creating new service levels, better customer experience, and more significant opportunities for all involved. As of 2020, Packform officially became the fastest-growing packaging company and won the gold International Stevie Business Awards for Technology Startup of the Year.

Boosting Brewery & Distillery Business with Entertainment and Lodging  

Cyndi
2 guitarists jumping

By: Alyssa L. Ochs

With thousands of craft breweries and distilleries in operation today, it’s no longer enough to simply produce amazing beers and spirits. Brewers and distillers are quickly learning that to thrive and stand out among the competition, they need to build a unique brand and expand their reach to a broader customer base.

  Some of the best ways to achieve this are to offer entertainment and recreation opportunities for everyone to enjoy and onsite lodging that makes an evening out safer and more convenient. With the right event-planning strategy, you can keep consumers coming back to your business even after they’ve sampled everything on the drink menu multiple times.

Types of Entertainment and Recreation

  In recent years, both breweries and distilleries have gotten very creative with the types of entertainment they offer. You’ll regularly find local establishments offering board game nights, yoga classes, musical concerts and karaoke nights. Trivia, open mic comedy nights, painting and crafting events and book club meetings are also held at breweries and distilleries.

  Low-key options, such as yard games and photo booths, are easy options to add, as well as professional networking events, poker tournaments and sport-themed events for big games. Breweries and distilleries can become more involved in their communities by partnering with other businesses to promote local products, nonprofits to support important causes and artists to display pieces of original artwork on the walls. Meanwhile, it’s fun to host holiday-themed festivals, offer educational brewing or distilling lessons and highlight new beverage releases in a way that entices people to walk through the door.

  Dana Koller, the president of Kaktus Brewing in Bernalillo, New Mexico, told Beverage Master Magazine that his brewery’s most successful events have been celebrating Oktoberfest, St. Patrick’s Day and other cultural events. Kaktus always has a full lineup of exciting events on the brewery calendar and offers small-batch brews, organic bites, and a refreshingly chill atmosphere.

  “I think what makes them successful is that we are genuine about the celebration and not just there to make a quick buck,” Koller said. “Although we may not be the most authentic option, we make sure that we have a blast doing what we do and show our appreciation for those wanting to celebrate.”

  On the distillery side of things, Sledge Distillery in Tolar, Texas, has been adding lots of events to its calendar lately, including tastings, tours, food, retail offerings and live music. Sledge Distillery specializes in hand-crafted spirits based on a World War II family moonshine recipe.

  “Private shopping nights for new releases have been very successful,” said Susan Sledge. “Also, we have found that the addition of live music adds to the atmosphere. Our clients are looking to re-engage with us and bring their friends along. We consider their repeat business a huge honor.”

Onsite Lodging Options

  Another unique idea for breweries and distilleries to consider is adding lodging near the taproom to welcome overnight guests. Some craft beverage producers have locations in historic buildings that can be renovated to include accommodation in an adjacent space.

  Alternatively, producers can purchase or build a separate building that provides lodging on the same property. Not only is this a good way to keep customers safe from drinking and driving, but it’s an opportunity to make your business a true weekend destination rather than just a quick stop along the way.

  One brewery that has added lodging to its offerings is Riff Raff Brewing Company in Pagosa Springs, Colorado. Founded in 2013, Riff Raff operates in a historic, Victorian-era house in the downtown area and offers flagship beers, seasonal taps and eclectic twists on favorite foods. Visitors can currently rent apartment units above the downtown brewpub through Airbnb.

  “The building that houses Riff Raff Brewing Company is registered on the Colorado State Historic Preservation roll and has been used and repurposed multiple times since it was built in 1898,” said Jason Cox, founder and CEO.

  “When we purchased the building and opened the brewery in 2013, the upstairs housed apartments with long-term rentals,” Cox said. “We underwent a major remodel in 2015 and converted to short-term rentals because of the fact that there was a brewery downstairs. We thought it would be a type of beer-and-breakfast kind of offering!”

What Consumers Want Right Now

  There is a high demand for entertainment options at breweries and distilleries because people are looking for fun ways to get out and experience their communities in different and social ways. Breweries and distilleries have emerged as ideal destinations for date nights, family-friendly fun and free things to do that don’t require a big commitment. Many businesses are finding success with inclusive events that are pet-friendly and welcome children. You can give consumers what they want by keeping participation costs low or free, offering something different from what they can find anywhere else in town, providing fun photo opportunities and maybe even selling specialized merchandise to mark the occasion.

  “I think what people are looking for is true community, a place and time to connect without expectations,” said Koller. “The music and events are the excuse to get out and socialize for them.”

  “Our customers are looking for a way to relax and take a break from the pressures of life,” said Sledge. “Our distillery is located in the country and gives our guests a feeling of truly ‘getting away.’” 

  “I can’t speak directly to data or analytics, but I do know there are several experiences where lodging is packaged with craft breweries, and it creates a more complete experience,” said Cox. “Our friends own a brewery in northern New Mexico that allows camping on the premises, and they have lots of concerts, so it provides an opportunity to have an immersive guest experience. We aim to do the same type of thing with our lodging above Riff Raff Brewing Company.”

Considerations for Breweries and Distilleries

  Planning events may seem overwhelming to some brewery and distillery owners because it’s just one more thing added to the to-do list and budget. It often pays off in terms of business sustainability and professional satisfaction in the long run. Events, recreation, entertainment and lodging provide fun opportunities in relaxed environments to build your brand and get people engaged with what you’re doing. It’s an effective way to make personal connections with your customers and perhaps even raise money for charitable causes.

  There are many things to think about when planning a new event, type of entertainment or onsite lodging. Cost tops the list since some things will inherently cost more than others. If the event requires renting or buying extra furniture, party supplies, or sound equipment, you’ll need to budget ahead. Although it may be an initial goal to make extra money from an event, it might be worth it to break even for the sake of outreach and exposure. Breweries and distilleries with large spaces may be able to rent out entire sections of the building or property for private events and make extra income in that way.

  Regarding onsite Airbnb offerings, Riff Raff’s Cox sees significant benefits in breweries entering the lodging business.

  “We rent more than 325 nights a year in each of the two rentals, which include a three-bedroom, two-bath unit and a one-bedroom, one-bath unit,” Cox said. “We do see people who book because it’s above a brewery, and they definitely want that experience. Sometimes I conduct VIP tours and add other offerings for guests who stay upstairs.”

Event Planning Tips

  When considering hosting an event, make sure to see what else is already scheduled in the community so that there are no conflicts that would prevent someone from attending what you have planned. In general, it’s best to keep the event size manageable so that the lines for beverages don’t get too long or the spaces too crowded. Fun themes will catch people’s attention, while free and low-cost ticket prices will make your events more accessible to everyone.

  Recurring events, such as activities that happen on the same day each week, make scheduling events easier and allow more people to participate when it works for their schedule. It may also be worth inviting another local brewery or distillery to co-host your event.

  Koller from Kaktus Brewing said that one of the most important things to plan for when hosting events is “making the numbers work so that you are not understaffed since this is always a major challenge.”

  “From the moment a guest arrives on property, we want them to feel welcome,” said Sledge. “Signage has been strategically placed, so people know where to go and the options they have for entertainment, food and beverages. Our employees are intentional about greeting guests and orienting them to the facility and events.”

What’s Next for Craft Beverage Entertainment?

  Producers are just getting started with what they have in mind to entice craft beverage enthusiasts.

  “For Kaktus Brewing, we have been working on plans to expand parking to host larger events with games, a new stage, more shade structures and outdoor cooking,” said Koller. “This will allow us to do full weekend events instead of just evening events.”

  “We are programming smaller, more intimate events where people share a particular interest,” said Sledge. “For example, we are doing a three-event women’s workshop called ‘Feel Good Fridays’ where the group has drinks with a licensed therapist who facilitates a group session on various topics.”

  Meanwhile, Cox recommended that any brewery looking to add short-term lodging should check with the local planning or zoning department to understand rules regulating short-term rentals.

  “Depending on the type of zoning district, it may or may not be allowable for a brewery to offer lodging,” Cox said. “After that, I would put myself in the shoes of a guest to understand the entire experience. For example, some of the equipment that a brewhouse uses runs 24/7, and the noise could have an impact on the lodging, depending on the configuration. Beyond that, I would say to create a great experience for the guests and make it happen. Remember, it’s all about the craft beer and having fun with it.”

Bottling & Canning Innovation

Cyndi

Companies Deliver Premium Technology, Raising the Stakes in Productivity!

bottling and canning process

By: Cheryl Gray

When it comes to bottling machinery for craft breweries and distilleries, technology is king.  The work that goes into fabricating, filling and sealing bottles and cans begins with the expertise of companies that understand what craft brewers and distillers need most—a cost-efficient way to boost output while also protecting the integrity of their products.  

  One of those companies is Pneumatic Scale Angelus, part of BW Packaging Systems. The Ohio-based firm is a global industry leader in designing and manufacturing beverage canning lines and filling technology for the craft beverage industry. The company’s numbers are impressive, starting with its years in business—more than 130. It has seven manufacturing locations and more than 700 members on its worldwide team. 

  Pneumatic Scale Angelus has installed more than 16,000 canning operations across 132 countries with applications that include liquid and dry filling, capping, can seaming and labeling. Global Marketing Director Gigi Lorence said that as an expert in beverage canning lines and filling technology, the company has built a reputation for knowing how to leverage the innovation of its high-speed beverage lines, scaling them down to the slower production speeds and lower volumes required for craft beverages. Lorence broke down the specifications for the company’s inline volumetric canning lines.

  “Our fully-integrated filler and seamer machines allow brewers to take control of their can filling operations. Running at speeds from 15 to 100 CPM, our inline canning machines are suited to small batch production and frequent changeover,” she said. “Our CB50F and CB100F open-air systems use our proprietary flowmeter technology to ensure a perfect fill at speeds to 100 CPM, with a gas flush system that keeps oxygen levels under control. The high-speed seamer design, scaled for single- or dual-head operation, delivers the only repeatable hermetic double seam in the industry. 

  “Our CB50C system leverages the CB50F design but uses counter-pressure filling technology to meet the demand for high-carbonation beverages, including hard seltzers, sparkling wines and high-carb beers. The CB50C uses true isobarometric filling technology, with the fill tank above the fill heads, allowing the product to be gravity-fed, as opposed to pumped upward. This minimizes product agitation for a quiet fill and lower CO2 loss.” 

  For brewers ready for the higher speeds of a rotary canning system, Lorence described PSA’s options for rotary volumetric canning lines. “These systems run from 100 CPM to up to 400 CPM, depending on configuration, which means brewers can expand their overall production without drastically increasing their overall footprint,” said Lorence. “Our larger CB244/324/404 rotary open-air systems serve brewers ready for higher speeds. These systems have 24, 32, or 40 electro-mechanically controlled filling heads that ensure fill level accuracy to within plus or minus 0.5 grams of the target volume and four seaming heads that offer the same industry-leading seal as our slower-speed machines.”

  There is a brand-new addition to PSA’s craft beverage canning lines. Lorence described the CB100C, launched this May at The Craft Brewers Conference in Minneapolis.

  “This rotary counter-pressure system builds upon the capabilities of the CB50C but leverages a 12-head rotary filling turret design, coupled with a dual-station seamer, to allow brewers to increase their throughput to more than 100 CPM. Using a motorized, recipe-driven turret design allows for automatic turret height adjustment,” she said. “Like the CB50C, the CB100C uses a true isobarometric filling, with an onboard product supply tank rated to 60 psi. The addition of the 12-head rotary filling turret enables the system to move more cans smoothly through the line, filling faster without creating an increase in product agitation as speeds increase. This gentle fill virtually eliminates the unwanted reductions in carbonation levels seen with other filling methods.

  “The CB100C also employs magnetic flowmeter technology to help you get a perfect fill with little waste and an under-cover gas flush system to keep dissolved oxygen levels low. In addition, our industry-leading Angelus double-seam technology keeps cans sealed tight, extending critical shelf life. The system is optimized for sleek and standard can bodies and designed with quick-change adjustments for easy changeovers accommodating various can heights and body diameters with no valve change required. A compact footprint and an intuitive HMI for individual fill-head volume adjustments simplify operation.”

  Another expert in bottling and canning operations for the craft beverage industry is XpressFill, a California-based company in operation since 2007. XpressFill offers a broad range of can and bottle filling systems for brewers and distillers, all of which promote ease of use, longevity and post-sale service as a top priority. It manufactures bottle fillers to accommodate volumetric, level fill and carbonated beverage technology, providing for nearly every bottling need. Rod Silver is head of the company’s marketing and sales.

  “XpressFill prides itself on its ability to respond to the needs of its customers. Our support of our products is unmatched,” said Silver. 

  XpressFill specifically targets smaller breweries that need guidance on the best equipment choices for their operations. “All XpressFill products are designed with the smaller, craft artisan in mind. We have been able to build affordable yet efficient and effective filling machines for this market,” Silver said. “The most popular filler for distillers is the XF460HP, specifically designed for spirits, using materials that are more resilient to ethanol. Our proprietary technology allows for filling well within TTB tolerances.” 

  Silver explained how the volumetric filler controls the amount of fill using a precision timer. The filler is calibrated to specifications and capable of accurate fills, regardless of inconsistencies in the bottle glass. The volumetric filler is also suitable for bottling various sizes, even down to 50 ml bottles.

Silver said XpressFill’s most popular products for craft brewers accommodate both cans and bottles. “The most popular fillers for brewers are the XF4500C (cans) and XF4500 (bottles). Both fillers use counter-pressure to minimize oxygen pick up during the fill.”

  Silver told Beverage Master Magazine that all XpressFill systems have a pre-fill CO2 purge cycle. The company’s counter-pressure systems require a minimal air compressor to operate the pneumatic actuators. Open can fillers have a moveable shelf that is easily adjustable for various sizes, with a maximum can diameter of four inches. 

  The counter pressure filler has a stopper that fits tightly into the can or bottle opening to seal and pressurize the container. Filling a container, Silver said, is an exact science. XpressFill’s level fillers control the rate of fill using a level sensor. As the liquid reaches the sensor, the filler automatically stops the fill. The liquid level is set by adjusting the height of the shelf, which can be adjusted to about one-sixteenth inch increments. The level filler can be used for all products, including wine and distilled spirits. Silver said that the level filler is perfect if the sightline in the bottleneck is a concern for shelf presentation due to glass variations.

  Although Colorado-based Ska Fabricating was born out of the need to address the brewing, packaging and distribution of Ska Brewing, its innovations have helped breweries worldwide.  

  Marketing Director Elise Mackay described the company’s most popular depalletizers. “Our most popular can depalletizer is the Can-i-Bus. It is our original depalletizer, obviously updated and

improved upon many times since its creation, and a full-height automatic depalletizer that is capable of speeds up to 250 CPM. It comes with three different trim levels that come with a variety of different features. It’s perfect for mid-sized operations and a great option to grow into for smaller operations,” said Mackay. “Our Nimbus is like our Can-i-Bus Jr. It features the same robust construction and pallet sweep mechanism that the Can-i-Bus does but uses a rotary table discharge that allows for additional accumulation with the added benefit of being able to fold down to save space when it isn’t in use. The Nimbus is also portable. You can use a pallet jack to move it from your production floor once you’re finished with your packaging day, so it’s perfect for smaller-scale operations looking to grow.” 

  Mackay said that innovation is always at the forefront at Ska Fabricating. “The newest addition, the Microbus, is our smallest footprint, most flexible, most affordable depalletizer yet. It’s rated up to 30 CPM and is an ideal product for operations that are just getting started in canning. Low speeds, manual pallet lifting, and ultimate portability make the Microbus special. It features the same foldable rotary table discharge that I mentioned with the Nimbus, but it also has a foldable dead plate, so when it’s completely dismantled, the footprint is minuscule.”  

  Mackay points out why her company is considered in the industry as, in her words, the “likable expert.”

  “We have an incredible team of engineers that create robust and reliable machines and then work with every single customer to create custom layouts to suit their exact needs; a personable and reliable sales team with tons of brewery and packaging experience; an installation crew that will travel to the ends of the earth to set our customers up for success; and a top-notch customer support team that is available 24/7 to assist with any issues that arise.”

  Industry experience, innovative products and after-sale customer service are common threads among these companies. These experts say that this combination is what breweries and distilleries should look for when choosing a company for bottling and canning products.

Is it Time to Franchise?

Cyndi

By: Raj Tulshan, Founder of Loan Mantra

franchise opportunities available

The Casual Pint, a craft beer shop and bar, opened its first location in 2011 and their first franchise two years later. Since then, they’ve steadily expanded. Now, they have 20 franchises in eight states, and have found the franchise model to be lucrative for their business – and a great way to grow their brand.

  Part of the Casual Pint’s success is a combination of a solid concept with the right set of circumstances to succeed. First, they have a stable infrastructure in place that can be replicated in other locations.  They also provided all necessary resources to their franchisees, including market research, architectural design, and marketing and sales materials. They’ve ensured that the owner of each franchise was heavily involved in their communities, a model they’ve implemented from their very first shop. Additionally, each location promotes themselves as a community gathering place that provides exceptional beer, and the business is thriving.

  Franchising, like The Casual Pint, can work really well. Consider these stats:

●   90% of franchisees enjoy operating their

      business.

●   88% enjoy being part of their organization.

●   85% feel positive about their affiliation with their franchisor.

●   80% feel their franchisor operates with a high level of honesty.

●   78% would recommend their franchise brand to others.

●   73%, given the option, would do it all over again.

  Independently owned businesses looking to grow can explore whether franchising would be a good solution for their unique situation. Here are some things to consider before you decide whether to franchise:

  Are you ready to sell your brand concept? To be successful, you’ll need more than just a savvy business concept. Before you franchise, determine whether you can clearly explain what your brand is, what it does, and its unique value proposition. Remember: you’ll need to be able to clearly articulate your brand and your vision to key audiences, including investors and potential franchisees, to entice them to get involved.

  Do you have a solid structure in place? Your franchisees will need to replicate your business model and operational structure for marketing, sales, technology, etc.  So, you’ll need to have strong systems and processes in place before diving into franchising. Expect to hand over ready-made “toolkits” for your franchisees to use in their day-to-day operations. Allow plenty of time to develop these concepts, plans, and materials.

  Can your business be replicated? Is there a market for your business elsewhere? Could someone else run another location as well as you do? For a company to thrive as a franchise, it must be replicable. The Casual Pint found success as a community-focused meet-up space with amazing beer, and it didn’t matter if the community was in Tennessee or Arizona. The concept translated well in different locations, and can continue to grow and thrive anywhere.

  Are you ready to scale your passion? Are you ready to teach and manage others on a larger scale? Are you comfortable stepping back from the daily operations and focusing more on franchise management? For example, if you’re a craft beer maker, once you decide to franchise, you’re no longer going to be hands-on with beer brewing.  You’ll be focused on running a franchise to sell your beer, and teaching other people how to brew it, sell it, market it, etc. You’ll also be helping your franchisees get set up with real estate, construction, hiring staff, etc. Are you ready to scale your passion, overseeing several others in a new and amplified managerial role?

  Are you ready to build a dream team of outside experts? It’s essential to consider hiring knowledgeable professionals to help you through the entire process of developing your franchise model, preparing the necessary documents, and navigating the finances, including securing loans. You’ll need to hire financial professionals who specialize in accounting, loans and assisting business start-ups, as well as, specialized franchise attorneys to assist in the drafting of your paperwork. 

  Are you ready to invest in the business’s future? Expect to invest personally in the venture, which may require a business loan. Also, you may need to recruit investing partners to help manage the expenses. Anticipate a variety of costs, including brand development, experts’ fees, legal fees, and outreach to potential franchisees. You’ll need significant capital to launch your franchises, so think about how you will raise the necessary cash.  Many people choose to divest a 40IK, start with personal savings or take loans from family to start their first franchise. Others seek out investors, small business loans and  lines of credit.

  Have you researched funding? There are several different ways to fund a franchise. Seeking out an experienced loan advisor that you can trust can save you time and money. For example,  Loan Mantra has relationships with all types of franchise lenders, so even if you don’t know the exact kind of funding you need, we can help you determine the right loan package. Anecdotally, bankers and financial experts notice significant cycles to franchise funding. In January, more franchisers will seek equipment loans; whereas in the summer months, specifically July & August, they often seek more inventory-based loans (e.g. a cyclical  inventory such as football jerseys to sell in a bar or other seasonal products).   Regardless of season, 7a loans are always a significant source product for franchise funding. Most franchise lenders will attempt to use a 7a product first, followed by direct equipment company loans, followed by loans given by manufacturers. The franchisor will usually have a set deal with an equipment company and negotiate those terms out front.

  What will attract franchisees to buy into your concept? Be the brand that you represent. Personally meet with potential owners and attend area trade shows. Be easy to do business with. Streamline your business processes. Loan Mantra’s franchisors are able to house all of their franchise contracts, financing applications, and associated documents online through the BLUE platform, allowing their franchisees to complete everything online, without having to meet in person or send by snail-mail. The way you do business tells others something about you. Working through an antiquated analog system may tell them you’re antiquated, whereas using today’s tech tools will tell them you’re ready for the future.

  If you’ve considered most of these points this may be the time to franchise your passion!

About the Author

  Neeraj (Raj) Tulshan is the Founder and Managing Member of Loan Mantra, a financial advisory firm with best-in-class and proprietary fintech, BLUE (“Borrower Lender Underwriting Environment”). Loan Mantra, Powered by BLUE, is next-level finance: a one-stop-shop for business borrowers to secure traditional, SBA or MCA financing from trusted lenders in a secure, collaborative and transparent platform.

  After graduating from Ithaca College in Finance, Tulshan began his banking career at Merrill Lynch in New York City. He spent more than a decade in the Currencies, Commodities and Investments Group where he also worked with global asset-backed securities, structured products and principal investments. There, he also originated and underwrote deals valuated over $100 million and structured finance transactions.

  When the market crashed in 2008, Raj saw a significant opportunity to fix the fractured lending ecosystem. Soon thereafter, he sought after and completed an MBA from the Said School at Oxford University and began developing Loan Mantra. His goal was to remove the silos that exist between lender and borrower using secure financial technology. Though Tulshan continues to be iterative with his fintech, meeting current demands of both market and borrower, his professional mission and good- natured approach with clients remain the same. In this, Loan Mantra displays its founder’s proud partnership between best-in-class fintech and top-marks human experts. Time-and-again, clients turn to Raj because they know he will always pick up the phone and offer unparalleled financial counsel in a remarkably human —even friendly—way.

About Loan Mantra

  Loan Mantra is a financial services company designed to serve small and medium businesses with offices in New Jersey, South Carolina and New York. At Loan Mantra your success is our success. This means that our attention, purpose, and intention are all focused on you, our client.  We are your ally to overcome obstacles, bringing peace through uncertain times to achieve your highest goals and aspirations. Your friendly, responsive agent will listen respectfully, and service your account actively through one of three locations in the US.  We speak your language whether it’s English, Spanish, Hindi, Bengal, Hospitality, Laundry or QSR, let us help you today. Connect with us at www.loanmantra.com, 1.855.700.BLUE (2583).

“SHOW ME THE MONEY”

Cyndi

After Friends and Family, Where Do I Get Growth Capital?

By: Quinton Jay

dollar bills flying

Like most entrepreneurs, founders and owners of smaller craft breweries and distilleries often find themselves having to wear many hats. You need to be aware of your internal operations and external logistical factors in your business’s supply chain, as well as understand how to best market and sell your brand’s products.

  Arguably one of the most important hats you will have to wear that is not obvious is the one that reads “finance.” Without having a finger on the pulse of your business’s finances, you’re setting yourself up for inevitable failure. Running out of cash is the number 1 killer of businesses within the first two years.

  When your finances start leaning towards the red, or you know your business requires an additional injection of capital to grow successfully, it can be easy to feel frustrated and discouraged. But this is simply another part of business; you can’t expect to reap the benefits without having to face and overcome the hurdles and challenges you’re bound to encounter.

  If you — like many other small business owners — were able to obtain at least a portion of your original capital through friends, family, or other investors, this may not be a possibility further down the road. This is where that “finance” hat comes into play once more. In order to emerge from uncertainty with a brewery or distillery that is ready to continue growing, you as a founder or owner are required to find alternative means of raising funds, especially if your overarching aim or goal is to land an eventual, profitable exit. But where do you start?

  Here are some ways that you can use as means of obtaining additional growth capital for your small brewery or distillery business when reaching back out to friends and family is no longer an option.

Understand the Realm of Private Equity Investments

  As the Managing Director of Bacchus Consulting Group and its capital management fund, I have more than twenty years of experience managing, consulting for, and investing in more than a handful of small, independently-owned brewery and distillery businesses. I have helped dozens of businesses in the industry understand their options when it comes to raising growth capital through VC investments, the separate stages of fundraising, and the impact that each fundraising option has on those businesses.

Private Equity Funding

  When the time comes to look into raising growth capital for your small brewery or distillery business, the most prominent option you will run into is private equity (PE). To put it simply, PE involves investing in companies using capital that has been sourced from individual or institutional investors, as opposed to investing in companies using capital sourced from public equity markets like the NASDAQ or New York Stock Exchange.

  For the sake of insight, the general thesis of any PE investment is three-fold. A PE investment is made to: firstly, purchase a company (or portion of a company) using significant leverage and a minimal amount of equity; secondly, utilize the industry expertise and synergies of the PE investor(s) in order to maximize the growth and efficiency of the acquisition or investment made, and; thirdly, to sell that acquisition in an approximate period of 3-7 years based on the company’s improved metrics and lowered levels of debt.

  A common misconception with PE funding is that giving away equity in return for capital is “free,” but this could not be further from the truth. Selling equity for capital is simply a means of delaying payment. With PE funding, there’s no true cap on what you can give away in return for the growth capital you want or need. If you believe in your business, you’re better off acquiring debt rather than selling a portion of your equity. When you give away equity, you’re giving away infinite returns in perpetuity.

Alternative Lenders (Non-Bank Financing)

  Some sources of alternative financing include:

●    Merchant Cash Advances (e.g., Quickbooks capital, Shopify capital, AMEX Merchant Finance, etc.);

●    2nd Lien Lenders (similar to a 2nd lien on a home mortgage)  and;

●    Unitraunche Lenders: a hybrid lending model that combines multiple different loans — sometimes from multiple lending parties — into one, with a blended interest rate that tends to average those of the lowest and highest rates of the individual loans lent.

  As their name states, these are each an alternative form of financing available for businesses looking for access to growth capital. However, these forms of financing for businesses tend to be riskier on the part of the lender, hence why they charge more for these sources of growth capital.

Traditional Lenders (Bank Financing)

  Financing for growth capital through bank loans is another available option for small businesses. This avenue tends to come with lower interest rates than most sources of alternative financing but is usually much more difficult to acquire.

  Financing can also be done through debt, rather than its equity, but again: if your small brewery or distillery business is already deep in debt, it may not be the most beneficial option available to you. Although, when acquiring bank debt, or any debt instrument (as opposed to equity via PE financing), there’s always a cap on how much you can pay for the use of those funds received.

Finding the Right Investor for Your Brewery or Distillery Business

  Regardless of which financing option you choose to go with when searching for additional growth capital, the most important factor to keep in mind is to find the specific investor, fund, or lending institution that compliments your business and its goals. If your aim is to grow your brewery or distillery into a business that can be acquired by a larger parent company in a multi-million dollar deal, then PE financing is likely your best option. Similarly, if your business has a higher amount of debt, finding an investor that can provide you with acceptable terms for a second lien may be the avenue you wish to pursue.

  Whatever type of growth capital investment you wish to see for your business, be sure to ask yourself questions regarding the synergies your investor has with your business. Some examples of these might include:

●   Does this investor have good chemistry with me and my core leadership team?

●   Does the investor have a willingness to help and mentor me and my team on how to best successfully grow our business in line with our goals?

●   Does this investor believe in me, my team, and our ideas for our business?

●   Do they have relevant experience and connections we can utilize for additional investment opportunities now and/or in the future?

●   Does this investor have the domain and expertise — along with the capital — necessary to help carry our business forward through periods of growth we want to achieve?

  If your answer to any one of these questions falls into the realm of anything other than “yes,” then chances are high that they are not the right investor to bestow you and your business with growth capital. Additionally, if you or your core team are not ready or willing to accept mentorship from an investor, then don’t waste their time (or yours) trying to receive an injection of capital for growth solely for the sake of having more cash to fuel your business’s runway. Too many businesses — even smaller breweries and distilleries — land themselves in hot water this way. Don’t become one of them.

Showing What Investors Want to See in Your Business

  Before any investor, fund, or firm will agree to make an investment of growth capital in your business, they are going to scrutinize your business from every perceivable angle. Throughout their vetting process, you can (and should) expect any potential investor to analyze no less than the following aspects of your company:

●   Business Model: How does your brewery or distillery make money? What are your key business metrics such as revenue and gross margin, operating profit, and EBITDA? Is your current model scalable or does it need to be reworked if your business wishes to continue growing?

●   The Team: Does your business’s core team (including you) possess the knowledge, skills, and ability to carry the company through periods of growth? If not, which employee(s) need to be let go and replaced? Is the team able to collectively address and resolve issues?

●   Structure and Governance: How is your company structured and led? Is there transparency and accountability across its departments? Does your business have a succession and/or key man insurance plan in place? If so, what does it look like?

●   Exit Plan: Does your company have an exit strategy in place? If not, then why not? If so, what does this plan look like, and is it reasonably sound?

  All of these factors will play a vital role in your business’s ability to land growth capital. From my own experience as an investor/financier, I am looking for specific reasons not to invest in or finance a company; anyone can fall in love with thier own deals and each deal must stand on its own merits. This means that you, as the founder or owner of your business, will need to know both your company and its market viability inside and out if you wish to gain an investment of capital necessary to grow it in a way that meets your goals.

  If you are able to show investors and financiers that you are credible and trustworthy, that your business has shown the capacity to make sales of quality products and grow from its revenue and profits to date, and that it has the potential to continue growing in its existing market or into new markets, then your chances of landing an investment of capital required for growth are much higher.

An Ingredient For Success: Adding a Business Coach to Your Craft Beverage Company

Cyndi
bartender preparing drinks

By: Chris Mulvaney, President, CMDS Marketing Agency

So, you think you have it all. A great product, niche location, rockstar staff … ultimate success will no doubt come knocking at your door to order one of your specials. Right?

Well, maybe.

  Hard truth. When it comes to craft beverage marketing and branding, making those delicious bevvies is only half the battle. Many craft beverage companies that failed also had a great product, perfect location, and an awesome staff. So … why did they fail?

  For one, planning. Part of a craft beverage business is, well, the business. And while that part may not taste quite as good, it’s still a huge part of running and scaling your company so that it thrives for years to come.

  Planning your craft beverage business takes into consideration some very important components. Branding is one of them. If you don’t have solid branding, then you’ll have a tough time standing out in today’s crowded craft drink market.

While there was a time that breweries and distilleries could succeed without strong branding, much has changed. Today, statistics show that a new brewery opens up almost every day. That means crazy competition, and as a result, you really need strict branding and positioning in order to stand out. Without that, even the best product can get lost in the mix and drown into a drain of obscurity.

The What, The How, and The Why

  Simon Sinek familiarized the concept of the “What,” the “How,” the “Why” in his book, “Start with Why.” The concept is about having three layers to your brand story.

  The “what” explains what your business is in simple terms (“My business offers locally produced cider”).  The “how” is how you do it (“we use on-site fermentation and locally-sourced apples”).

Unfortunately, while most craft beverage companies may be able to explain the “what” and the “how”, they tend to lag in the “why”. And the “why” is usually the most interesting part of the story because that is where the emotion comes in (“my partner and I both have celiac and were not able to enjoy a traditional brewery experience, so we wanted to offer a delicious beer alternative for gluten-sensitive customers and those who want something a bit different”).  The “Why” is key because it draws people in and creates a deep emotional connection, which is more compelling.

Your brand is the perception of your company by your customers. It is the heart of your message and it’s how your customers will portray you on social media. The emotional connection with your customers is what drives the purchase. It is your “why”.

  This is where it also gets tricky. You can’t forget about the product. Above all else, your customer has to like the taste of what you sell, so quality is also vital.

  Therefore, branding involves defining key concepts, creating emotional attachment, and differentiating yourself from your competition, all while keeping a great product offering. It can be a challenge to balance it just right, and that’s where a business coach comes in.

  Typically, business coaches are experienced entrepreneurs and business owners who then decide to use their talents for building and growing a business to help other business owners reach their goals.

  They can provide far more valuable and personalized advice than any found online. They are essential to success – and are used by most humans across the board in other areas, yet the same principle often fails to apply to a business’ growth.

Take sports or music. If an athlete wants to improve their skills, the best thing they can do is join a team with a great coach. Likewise, a musician will hire a teacher to help them reach rock star  heights.

  Essentially, having a business coach is like having a trusted coach or teacher, and they can prove essential to your brand’s ultimate success.

Why Every Craft Beverage Businesses Should Enlist a Business Coach

  In simple terms, business coaching is a process used to take a business from where it is now to where the business owner wants it to be.

If a business owner has tough questions or runs into problems along the way, their coach will be able to help them navigate their issues in the most effective way possible.

Getting Started

  A good business coach will ask you to list your core values and help you figure out what will make you stand out from your competition. Your customers have to understand your brand and concept to immerse themselves in the experience. You will also be asked how you would like to grow in a manner consistent with your brand.

  The hiring process should include a discovery period between yourself and the potential business coach to make sure you are both aligned and should include the following:

1.   Answer detailed focus questions so your business coach gains insight of what you want to accomplish.

2.   Review their coaching/consulting package thoroughly, so you’ll have a good idea of features, benefits, time alloted and pricing.

3.   Schedule a 20-30 minute discovery call to talk through the project and determine if you are a good fit to work together.

  A Business Coach should also address focus questions. These can include the following:

•    What do you need help with? Be as specific as possible about the problem you need to solve or opportunity you want to tackle.

•    What is the ideal outcome or result you want to achieve? What does it look like?

•    How urgent is this project? How important is it to tackle this (1 to 10)?

•    What’s your timeframe for this project/goal: 1) ASAP, 2) within the next few months, 3) sometime this year?

  In addition to evaluating strengths and weaknesses, it’s also important to define business goals. For some people, the goal is the freedom to do what they want. For others, it’s financial security. When setting goals, make sure they are specific, optimistic (but realistic), and offer both short- and long-term plans so you can evaluate your progress. 

  Throughout this entire process, business coaches serve as an invaluable source of personalized information and advice, providing business owners with specific industry navigation tools and assisting in setting attainable goals.

  Coaching Packages will reflect just how much time and assistance your business will need and a coach will work with you regarding budget and timelines.

A good business coach understands that exponential success does not happen overnight. That is where their coaching and development services come into play. A great thing about a business coach is that you can hire one at any stage and scenario of your business, whether you are just starting out, your business is struggling and you need a way to revive it, or you are an established name looking to take it to the next level. There will always be a need for a business coach to provide you with considerable entrepreneurial insights, expertise and innovative business ideas at any level. The benefits of having one cannot be overstated.

Large vs Smaller Businesses

  In many cases, the challenges and goals of small businesses may differ from those of large businesses.

  For example, a start-up brewery in a more localized setting, looking to attract more local customers, will have an entirely different set of goals and strategies than a large establishment that caters to multiple locations and ships on a large scale.

With that said, most business coaches will be experienced in working with small or large businesses since a big part of their job  is to learn as much as they can about each company and owner that they are working with, and developing a strategy that is uniquely suited to the specifics of each situation.

In other words, a high-quality business coach will likely be able to help you regardless of budget, company size or how large you want it to grow.

The Last Gulp

  The most important rule of self-evaluation and goal-setting is honesty. Going into business with your eyes wide open about your strengths and weaknesses, your likes and dislikes, and your ultimate goals lets you confront the decisions you’ll face with greater confidence and a greater chance of success.

  Look at the coaching experience through honest eyes and know that the purpose of a business coach is to make the life of the business owner less stressful and their business more successful, which in amongst itself is something to raise a glass to.

  If you need help on where to start, Chris Mulvaney has been providing Business Coaching Services to business owners and fellow entrepreneurs for over 15 years. His marketing agency, CMDS, can be a great compliment to these services. Feel free to reach out for a consultation and you will be put in the right direction by someone who can take your business to the next level of craft beverage success.

Just Add Honey: The NEW Buzz Worthy Ingredient!

Cyndi
apple cocktail on glas

By: Hanifa Sekandi 

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

Why is Honey all the Buzz? 

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

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

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

Sipping Guilt-Free Cocktails  

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

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

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

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

Maple Syrup and Monk Fruit Are Making Things A Little Sweeter  

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

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

Leveling Up – Health Conscious Imbibing  

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

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

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

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