The Financial Impact of a New Administration on the Beverage Industry

the dollar bill with a dropping dow jones industrial average chart

By: Raj Tulshan, founder of Loanmantra.com

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

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

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

Inflation

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

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

Rising Labor Costs

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

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

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

Tariffs

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

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

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

Tax Changes

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

State of Currencies

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

Cryptocurrency

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

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

Federal Budget Cuts

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

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

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

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

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

How to Elevate Your Products with the Best Flavorings

a man and two women around tubes and bottles

By: Alyssa L. Ochs

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

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

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

The Evolving Role of Craft Beverage Flavorings

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

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

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

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

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

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

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

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

Current Flavoring Trends

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

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

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

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

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

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

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

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

How to Create Custom Products with Flavorings

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

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

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

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

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

Considerations About Using Flavorings

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

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

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

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

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

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

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

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

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

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

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

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

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

Hiring the Right Distillery Consultant

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

By: Gerald Dlubala

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

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

Kindred Spirits Consulting: Stephen Tomori (Lead Photo)

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

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

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

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

A Consultant That Fills Your Needs

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

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

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

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

Find Your Consultant

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

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

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

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

Working with Kindred Spirits Consulting

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

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

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

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

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

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

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

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

The Unintentional Distillery Consultant

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

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

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

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

Working with Distillery Now

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

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

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

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

Distillery Now Brings Value and Experience

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

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

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

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

  

Consumer Awareness Shows an Emerging Regenerative Market

By: Erik Lars Myers

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

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

Becoming Regenified™

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

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

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

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

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

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

Regenified™ Manufacturing

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

hand holding a handful of grain

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

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

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

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

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

Regenified™ Value

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

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

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

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

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

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

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

About the Author

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

Can AI Boost Beverage Marketing Strategies?

futuristic robot with chin in hand

By: Hanifa Sekandi

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

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

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

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

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

AI & Market Research

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

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

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

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

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

Streamline Your Marketing Plan

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

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

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

AI Can Automate Social Campaigns

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

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

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

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

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

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

Make Your Own Ready to Drink Cocktails

cans of different ready made cocktails

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

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

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

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

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

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

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

•  How boozy do you want it to be?

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

•  What ingredients will be utilized to flavor the RTD?

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

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

•  Is the formula for the product shelf stable?

•  How long will the product last before it expires?

•  Is refrigeration needed to store the packaged product?

•  How will the product be branded and marketed?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Conveyors: Small Changes, Big Impact

How Conveyor Choices Drive Efficiency & Sustainability in the Craft Beverage Industry

shows large conveyors with bottles

By: Stacy Bashline – Product Marketing Manager, Chain & Component

In the craft beverage world, efficiency and sustainability aren’t just trendy terms, they are the keys to long-term success. Producers juggle production speed, costs, and environmental impact while keeping quality and consistency top-notch. While big investments like brew tanks or packaging lines get most of the attention, one of the easiest ways to boost efficiency and sustainability is often overlooked: conveyor chains and belts.

  Whether you’re moving cans, bottles, or kegs, the right choice of conveyor belt or chain can cut down on product loss, save water and energy, and improve overall productivity, without the need for a major system overhaul.

Sustainability in Motion: Less Water, Less Waste, More Efficiency

  Many industries, including the beverage market, face increasing pressure to reduce their environmental footprint. Key areas of focus include water conservation, energy efficiency, and compliance with Extended Producer Responsibility (EPR) programs. What many don’t realize is the critical role conveyor systems play in these sustainability efforts.

  One immediate opportunity for producers is reducing lubrication and water usage. Traditional conveyor chains often require constant lubrication, leading to excessive water and chemical consumption. By switching to advanced, low-friction, high-wear-resistant chain materials, manufacturers can significantly cut lubrication needs—or even eliminate them altogether. This not only lowers costs, but also aligns with corporate sustainability goals.

  These small adjustments can help beverage producers save thousands of gallons of water annually and can allow for safer work conditions with less water hazards on the floor.

Fewer Replacements, Less Downtime

  Beyond water savings, sustainability also means choosing conveyor products that last longer. Many producers operate in harsh conditions, where exposure to moisture, heat, and acidic ingredients can cause conveyor components to wear out quickly. Frequent replacements increase operating costs and cause production downtime.

  For instance, acidic residue from flavored seltzers can cause premature wear, causing a beverage producer to replace their standard acetal chain as often as every four weeks. By analyzing individual customer needs, engineers can recommend a new acetal material with high chemical resistance, which can extend chain lifespan to over six months—reducing waste, lowering costs, and improving production uptime.

  Once again, these small changes may not seem significant at first glance, but they can translate to thousands of dollars saved annually while supporting a more sustainable operation.

Optimizing for Flexibilit: Adapting to EPR Guidelines

  EPR guidelines are becoming increasingly important, shifting the responsibility for managing the end-of-life of products, particularly product packaging, to producers.

  How does this relate to conveyor chains? As producers adapt to comply with these guidelines, they are making constant changes to packaging formats, such as transitioning from glass to cans or switching to more recyclable bottles.

  These changes can be supported by understanding how the conveyor chain can accommodate the new products. Recent advancements in thicker chains help facilitate slower cooling processes after molding, resulting in a superior flat top surface. For cans or PET bottles, these surfaces provide enhanced product stability over time, while also supporting the shift to more recyclable packaging as required by EPR guidelines.

Sustainable, Smart, & Simple: The Conveyor Advantage

  For beverage producers aiming to increase efficiency, reduce costs, and meet sustainability goals, the solution may be simpler than expected.

  Partnering for decarbonization is key: beverage producers should align themselves with partners who treat sustainability as not just a goal, but a core pillar of operations. While only top 5% of companies globally are rewarded with a Gold Medal by EcoVadis, this esteemed recognition can serve as compass for a company with excellent corporate social responsibility performance. Beverage producers should collaborate not just with belt manufacturers, but those who treat them like partners and are committed to delivering local service and expertise, helping optimize production with sustainable, high-performance conveyor solutions.

About AMMEGA:   

  AMMEGA is a global leader in lightweight conveyor belting and power transmission solutions, with distinct product brands Ammeraal Beltech, Uni, Megadyne, Jason Industrial and Chemprene. With an unwavering commitment to innovation, excellence, quality, and passion for sustainability, AMMEGA delivers tailored solutions across diverse industries. Backed by a significant investment in the Americas and an Ecovadis gold certification, AMMEGA is dedicated to empowering its customers and shaping a more sustainable future.  

To learn more, visit www.AMMEGA.com

Pacific Northwest Wineries with Distilling Licenses

building in the winter with snow that says Wilridge Distillery

By: Becky Garrison

A growing number of Pacific Northwest wineries have added distilled spirits to their portfolio. Many of these distillers chose to make grappa and other spirits from their must instead of composting this product. However, a growing number of distillers are choosing to go the route of distilling whiskey.

Washington State Wineries & Distilleries

  In Distilling in Washington (The History Press, 2024), I noted the history that led to the ability of Washington State wineries to also hold a distilling license:

  “When Paul Beveridge of Wilridge Vineyard, Winery and Distillery of Seattle and Yakima began advocating in 1988 to change the liquor laws so that he could operate a winery and a distillery, a member of the board told him, ‘They’ll never be a distillery at a winery permitted in my lifetime. It will have to happen over my dead body.’

  Beveridge and members of Family Wineries of Washington State began calling the board ‘The Department of No’ after it not only denied his request to operate a distillery but also refused to allow him to use refillable bottles or offer restaurant-type service, even though the latter two activities were not mentioned as prohibited by law.

  The law pertaining to distilled spirits was amended in 2015 to permit wineries, breweries and cideries to hold a distilling license, with Beveridge’s becoming one of the first wineries in the state to also operate a legal commercial distillery. Initially, he had to set up his distillery in a separate space from his winery, though his businesses can now operate under one roof. Until recently, he could not sell his spirits at any tasting rooms where he was also selling his wines.”

  According to the Washington State Liquor and Cannabis Control Board (LCB) regulations:

  “A winery license (RCW 66.24.170) and a distillery license (RCW 66.24.140) can operate in the same building if physically separated from each other. There is currently no allowance for a winery and distillery to alternate production or share production space. What they can share is a jointly operated tasting room (RCW 66.24.1472). Also, wineries and distilleries can jointly operate an off-site tasting room, as detailed in RCW 66.24.1472 and WAC 314-28-310. They do need to maintain separate storage and financial records. They must also comply with the food offering requirements found in WAC 314-28-067, which include prepackaged items or items prepared off-site.”

  Following Beveridge’s advocacy, a select number of Washington State wineries have followed suit.

Browne Family Spirits (Spokane, Washington)

  Having founded Browne Family Vineyards in Walla Walla 20 years ago, it may surprise a few that founder Andrew Browne’s drink-of-choice is an Old Fashioned. He and the wider Browne Family team recognized the tastes of Browne Family Vineyards consumers reach beyond wine and felt joining the two industries brought the opportunity for discovery. 

  Getting into the spirits business had been on proprietor Andrew Browne’s mind when the opportunity to purchase a distillery came to fruition. He jumped at the chance, given its location in Spokane, Washington, where he was born and raised, and his strong bond with master distiller Aaron Kleinhelter. As Kleinhelter grew up in the shadow of the Jim Beam distiller, he bought insights from one of the world’s most established bourbon communities to Browne Family Spirits.

  Browne was a fan of Kleinhelter’s unreleased small-batch recipes he had made under the previous distillery. This evolved into what would become the initial line of Browne Family Spirits. In both ventures, Browne aspires to create an environment that appeals to and caters to both without diluting the experience.

Mastrogiannis Distillery & Winery (Lakewood, Washington)

  In 2016, Ilias Mastrogiannis launched a distillery and started a winery in 2019. In terms of production, he would describe his venture as a distillery-focused operation focusing on grapes. This project started with his early memories of growing up in Greece.

  “My dad was a mason turned winemaker, so during harvest, the entire family would assist in crushing grapes. That upbringing, along with the fact that nobody at the time was making grape brandies to the quality I know existed, we decided to start our distillery with that singular focus,” Mastrogiannis recalls.

  In terms of their wine portfolio, they have a Vermouth, which is a combination of their rose wine and their brandy, both of which are made under the same physical roof. In Mastrogiannis’ estimation, “Being able to cross two different products into one is something really special.”

  Due to the short harvest period for grapes, he finds he is limited to production for that season. He notes, “For example, we cannot get grapes in March, so by default, you don’t see a lot of distilleries focusing on grape distillate because from an economic standpoint, it is very hard.”

Monson Ranch Distillers (Prosser, Washington)

  Goose Ridge Estate Vineyards and Winery was established in 1998 when the Monson family planted 2,000 acres of estate vineyards. In 2023, the family officially launched Monson Ranch Distillers in Prosser, Washington. With over 80 years of family history in agriculture and farming, Monson Ranch Distillers is led by the third and fourth generations of Monson ranchers, together with Master Distiller Brian Morton to create uniquely crafted spirits. Morton has been working in the Washington spirits business for over 14 years. He opened one of the first distilleries in Washington state, Blue Flame Spirits.

  Starting with cattle feed lots, the foundation of Monson Ranch was built in the 1930s, as the family started climbing its way up in the Washington agriculture community. Following years of hard work and success in ranching, farming and winemaking, Monson Ranch Distillers is the newest venture for the family. The distillery offers a full range of premium spirits. Vodka, gin, brandy, and whiskey are only the beginning. With vineyards, orchards and new rye and corn plantings at the family’s home ranch in Goose Gap, plus a state-of-the-art distillery in eastern Washington, Monson Ranch Distillers controls every step of the process for a complete farm-to-bottle experience.

  The Monson Family wine brands and spirits brands are each distinct from one another. However, VIDO Vodka and Feather & Folly Gin are both made from alcohol distilled from wine grapes grown at the Goose Ridge Estate Vineyard. Both the Goose Ridge Estate Wines and the Monson Ranch Distillery spirits from wine grapes display distinct notes reflective of the unique terroir within the Goose Gap appellation. At the Goose Ridge Tasting Rooms in Richland and Woodinville, guests can taste the spirits in addition to Goose Ridge wines.

Westport Winery Garden Resort and Ocean’s Daughter Distillery (Aberdeen, Washington)

  Kim Roberts decided to make spirits after she went scuba diving with her daughter on Maui and visited the two distilleries. Currently, they have over 30 different wines, plus 30 different spirits. According to Roberts, this gives their guests many choices every day and reasons to visit on multiple trips.

  When asked to describe her operation, Roberts opines, “We’re  a winery with spirits for those who just don’t dig wine.” She views them as outliers in the wine industry since they are so far from any other wineries.

  Roberts finds the same dynamic present in the distillery. “We operate in our own remote bubble, with dedicated fans that share their enthusiasm for our products with their family and friends.”

  Oregon Wineries & Distilleries 

  In Oregon, a winery and distillery can offer wine and spirits tastings in the same area as long as they fulfill two conditions: one, the licensee of record must hold both the winery and the distillery licenses, and two, they must follow the requirements for tasting rooms as outlined in OAR 845-005-0431 and OAR 845-006-0452.

  Also, businesses do not have to serve food with tasting. However, if they want to sell and serve full drinks, they need to get a Special Event Distillery license. In addition, if the business not only has a distillery license but is a Distillery Retail Outlet with approval to sell bottles of distilled spirits, then they would need to have a different point of sale specifically for the distilled spirits.

Willamette Valley Vineyards (Turner, Oregon)

  In December 2021, Founder and CEO, Jim Bernau decided to venture into distilling Willamette Whiskey as a tribute to the people of Carlton, Oregon. For 91 years these residents enjoyed the building first known as W.A. Howe’s General Merchandise Store, which was nicknamed “the Old Cabin Tavern” owing to an interior constructed of hand-hewn timber. This building served as a general store, a hotel, and Carolton’s first bank, with a parlor and speakeasy supper club in the basement. Built in 1904, it was destroyed in a fire on April 18, 1995, with Willamette Valley Vineyards now owning the lot where its building once stood.

  Their limited release of Willamette whiskey heralds the beginning of their efforts to rebuild this property with a brick-clad micro-winery and distillery with food service. In this venture, they partnered with Portland-based Rose City Distillery to produce this handcrafted, small-batch rye whiskey that was aged in new American oak for six years, then blended down to a bottle strength of 100 proof.

  They released 12 bottles in December 2021 and then 350 bottles in February 2022. They want to do this again someday, but nothing is planned.

Patricia Green Cellars (Newberg, Oregon)

  Jim Anderson was promoted to venture into distilling because of all the ruined wine from the 2020 wildfires. In their process of distilling the wine to brandy, Dogwood Distilling in Forest Grove was up for sale. In 2022, Anderson, associate winemaker Matty Russell, their distiller Lynsee Sardell and two friends (primarily investors) purchased this distillery and re-named it Die The Wolf Distilling.

  The winery holds a DSP, as all the whiskey is aged on the property. Anderson notes how this business arrangement is a bit difficult to describe since the winery does not directly own the distillery. Still, a partner in the winery is also a partner in the distillery. “While we have done some custom distilling for other wineries (largely to help folks out with smoke-tainted wine) the only real distillery customer is Patricia Green Cellars,” Anderson states.

  For Anderson, the biggest disconnect in selling wine and distilled spirits is that while wineries can sell directly to consumers, spirit sales at restaurants and shops must go to the OLCC. Also, as a new distiller, they can only have three items listed at any one time.

Trisaetum Winery (Newberg, Oregon) 

  Founded in 2003 in Oregon’s Willamette Valley, Trisaetum Winery fulfilled the Frey family’s dream to farm responsibly, foster a family and create beautiful wines. As James Frey developed an equal passion for spirits, he dreamed of opening a distillery. That dream was realized when his daughter Tatum developed a similar passion.

  So, they founded Brixeur Spirits in 2020, which is located on the same property as their winery. Currently, James Frey makes the wine for Trisaetum while Tatum and her partner Jackson distill their spirits. On their website, they describe how they take a “winemaking approach to distillation and aging of spirits.”

Put Your Tasting Room to Work

people in a tasting room

By: Mark Colburn

In our last article we talked about the importance of the bar/beer tender as the initial brand ambassador. To follow up on this critical piece to your marketing and sales plan it is highly recommended that these front-line employees be consistently trained and evaluated. I suggest providing sales training for this team including probing (for customer wants/needs), food pairing and a sales incentive based on volume. To provide Off Premise Point of Purchase consumer recall, I also suggest a retail package display be situated in a high traffic area within the tasting room for immediate visual recognition (and take-home sales!).

Exploiting the Tasting Room

  Several of my clients complain that their tasting/tap room sales and traffic are down or flat. As a result, they often try promoting trivia or bingo nights to generate patronage. These may help somewhat. An alternative to this, that I like, is car shows at the tap or tasting room or brewery.

  There are thousands of “Gear Heads” who have muscle cars and love to bring them to car events. By conducting a local car show featuring muscle cars and adding a band or music, you now have an event or platform to promote that will attract potential customers to your venue. Do not discount the Gear Heads and car club members either. They know dozens, if not, hundreds of people like them who love craft beer. I always take care of participants with six packs and/or sufficient samples to thank them and ambassadorize them. You might consider allowing them to have their monthly club meeting at your venue on a slow day during the week. Their cars in your parking lot will attract incremental “traffic.” Let us look at some ideas I have successfully executed that significantly built sales in multiple channels.

  While conducting a territory business review with a regional Walgreens director, I asked him if he thought the store and district managers would like to go on a “field trip” to a few craft beer tasting rooms and breweries to learn about the industry. He jumped at the idea, so I contacted three craft brewers – Pyramid (then in Berkeley, CA), 21st Amendment and Anchor Brewing. I knew their senior management teams and asked if they would pool their resources to rent a bus to take this group to their breweries and brew pubs. They were 100% in. So, I invited a full district’s store managers and three regional district managers. They all arrived on time in San Francisco where we took off to the 21st Amendment brew pub. While at 21A they met the owners and sampled a variety of their beers. We then set off to Pyramid where they got a full tour of the brewery and then sat down in the conference room for a presentation, I made on the craft beer and cider industry. I fielded many questions from the group before breaking for lunch at the brewery. There they got to meet the middle and senior sales management team from Pyramid. After lunch we headed back to the City to Anchor Brewing where they received a warm welcome, a historic tour, and a sampling of Anchor’s finest. The tour ended with a group photo high atop the brewery from Fritz Maytag’s private penthouse. This was truly a treat for the group as this is never open to the public. From the large penthouse cocktails were served from Anchor’s newest spirits division. Afterwards we returned to one of the main stores for off-loading.

  The above concept served a variety of uses from educating and “ambassadorizing” critical individuals within the Off Premise channel to building key relationships with “players” who really make a difference. The tap room was the centerpiece for this effort. The results were excellent. All three brands received additional SKU placements throughout the large Northern California division while Anchor Brewing was able to negotiate a major pallet, 12-pack program resulting in thousands of cases in incremental revenue. Now, let us look at something less expensive.

Sales Ambassadors

  As you most likely know, your distributor teams meet once a week for a sales meeting. I have run over eight hundred of these meetings in my career and can tell you that many can be downright “dry.” My suggestion to our suppliers was to use their tap room or brewery as a future sales meeting venue. This way, your team will have your coveted On and Off Premise salespeople as a captive audience, ripe for “brand ambassadorization.” Once you make a date for a future meeting, PREPARE for this opportunity. Preparation and REHEARSAL are imperative for this rare chance to positively influence your audience. Regarding preparation, I would like to have your best presenter give a detailed summary (10-12 minutes maximum) of your company’s marketing story.

  I caution against making this “dry” and am always in favor of what I call, “Fun-kifization.” This is a “Markism” that simply means to make the effort fun and creative. After your presentation introduce your brand’s sales incentive scheduled to appear in next month’s plan (this needs to be pre-negotiated with the distributor sales management) and be certain they understand it and the expectations. I also recommend a first week “jump start” bonus that will get your incentive out of first gear and ahead of the multiple suppliers all vying for this sales team’s attention. The meeting should end with the announcement that each salesperson in attendance will receive a free six or four pack or bottle for them to sample at home at their leisure.

Speaking of Incentives

  After your wholesaler sales team has sampled your nectars and experienced your “brand DNA” you are in a perfect position to further ambassadorize them a few months down the road with a unique incentive. I have written many supplier sales incentives that follow up on the tap room/brewer experience. To further exploit the tap/tasting room I recommend creating a month-long sales incentive around distribution and/or volume increases for the winning sales division and their manager to be treated to a VIP session in your tap/tasting room. This VIP experience includes an intimate Q&A meet and greet with either the owner, executive team, and/or brewer master (or all of you!) and the winning division (typically divided into 4-5 salespeople and one division manager). The “pay out” includes a free dinner for each winner and assorted samplings of your nectars poured by one of your most senior sales team or owners. Recognize the unique opportunity this presents for your brand and future sales. A side benefit of this incentive is the “talk value” it has with the entire sales team as the winners will “brag” about their experience (at work) which keeps your brand top of mind post incentive while teasing the losers who will want to win and experience the next one. You will also benefit from word of mouth as the winning salespeople talk up your brand in their accounts. These people are influencers and are often asked where to go for a great craft beer. You can track this effort by training your bar staff to ask how a customer heard about your brand when they visit. The bar staff can record this and share it in your weekly staff meetings.

Key Take Away

  Always remember that people buy AND SELL for people and BRANDS that they like. Be that brand.

About the Author

  Mark Colburn has 35 years of experience in the beverage industry working primarily with craft beer and cider brands. He is the host and creator of the pod cast, “The Shinerunner Show” and author of the book, “Craft Beer Marketing & Distribution – Brace for SKUmeggedon.” After earning his master’s degree in marketing, Mark went into the advertising agency business then into brand management. For 15 years he was the marketing director at a large California beer, cider, wine, and spirits wholesaler where he managed a brand team, experiential events, and multiple craft brands. Currently Mark works as a consultant and is available to chat about your brand opportunities at shinerunner@comcast.net.

If You Think It’s About Photos and Video Content,You’ve Missed the Point

photo says branding

By: Jake Ahles, Founder + Creative Director: Morel Creative

  The Misconception: Focusing content on the consumer. Most craft beverage brands make the same marketing mistake: They create content for consumers, but forget their biggest repeat customers—distributors, retailers, and bar managers. If your content isn’t making it easier for these buyers to say “yes,” it’s not working hard enough.

  Here’s the Truth: Great visuals on their own don’t sell craft beverages. A compelling brand story does. More specifically, a brand story that doesn’t just target consumers but also speaks directly to distributors, retailers, and trade buyers. Too many brands focus all their content efforts on consumer-facing marketing while completely overlooking the decision-makers who control shelf space, menu placements, and distribution deals. If your content strategy isn’t making it easier for your buyers to say “yes” and stay top-of-mind, you’re missing a huge piece of the puzzle.

  The Real Issue: Content That Doesn’t Convert Beyond Consumers. Craft beverage producers often assume that consumer engagement equals success. They prioritize likes, shares, and comments but fail to ask:

•  Does our content make it easier for distributors to pitch our product?

•  Are we giving retailers a reason to prioritize our brand over competitors?

•  Do bars, restaurants, and shops see the upside of featuring us?

  When brands focus only on consumer-facing visuals without providing clear trade-focused messaging, they face major challenges:

•  Strong online presence but limited shelf placements.

•  Engaged followers, but inconsistent distribution.

•  Beautiful visuals but no clear reason for retailers to invest.

  Craft beverage marketing isn’t just about looking good—it’s about making your product easier to sell at every level of the supply chain.

  The Mindset Shift: From “Content” to “Conversion”, instead of only thinking:

•  “How does this look to our customers?”

•  “How can we get more engagement?”

    Start thinking:

•  “How does this content help our sellers stay on message and top-of-mind to our buyers and sell our product?”

•  “What do distributors need to make our brand stand out in a crowded portfolio?”

•  “How does this convince retailers that we’re worth premium shelf space?”

  A Case Study: A brand that gets B2B2C storytelling right.

Example 1: A brewery that shifted its focus to retailer-focused content. A mid-sized craft brewery found that despite a loyal consumer base, their retail sales weren’t growing. Their Instagram was full of lifestyle beer shots, but distributors weren’t pushing their product, and stores weren’t restocking as expected. The Fix:

•  Instead of just promoting what they brewed, they started telling the story of why retailers should care.

•  Create content highlighting their beer’s profitability, shelf appeal, and how it drove foot traffic to stores.

•  Provide sell sheets and video content for distributor sales teams to use in pitching accounts, aligning the sales team with a cohesive content ecosystem that keeps messaging consistent.

•  Build up a media library for follow-up, ensuring that distributors and retailers always had access to consumer-facing assets that reinforce the brand story while also serving as sales tools.

•  Structure their content in a way that not only educated distributors and retailers but also engaged consumers, creating a seamless narrative from supply chain to end-user.

  The Result? More placements, stronger distributor support, and increased reorders.

Example 2: A distillery that optimized its trade content. A craft distillery known for its small-batch whiskey was struggling to break into bars and high-end cocktail programs. The Fix:

•  Develope bartender-focused content, showing how their whiskey fit into high-margin cocktail menus.

•  Create a “Perfect Serve” guide with unique cocktail recipes using their spirits, making it easy for bars to feature them.

•  Produce video testimonials from top bartenders explaining why they loved working with the brand.

•  Produce the content in a consumer-friendly way that resonated with both foodservice professionals and consumers, encouraging bartenders to feature their product in cocktail menus while also inspiring at-home enthusiasts to purchase and experiment with it.

•  Ensure all content was stored in a centralized media library, providing their sales team with easy-to-access tools to follow up with trade buyers and reinforce the brand story.

  The Result? Increased on-premise placements, stronger distributor buy-in, and a new revenue stream from cocktail-forward partnerships.

Build a B2B2C Content Strategy (And Avoid Common Pitfalls)

  Crafting an effective content strategy isn’t just about engaging consumers—it’s about aligning marketing, sales, and distribution teams so that everyone along the supply chain is equipped with the right tools to sell your product. Here’s how to build a strong B2B2C content ecosystem while avoiding common pitfalls:

Craft a Sell-In Story for Buyers: Go beyond taste and branding—highlight profitability, sales velocity, and market differentiation to help trade buyers justify carrying your product.

Create Retailer-Focused Visuals: Show how your product stands out on the shelf. Use side-by-side comparisons, packaging breakdowns, and in-store display mockups to prove its retail value.

Align Content with Sales & Trade Education: Too many brands focus only on consumer education but fail to equip distributors, retail buyers, and bartenders with content that helps them sell.

Develop B2B materials: Such as profitability breakdowns, cocktail guides, and video case studies, to make trade partners more confident in promoting your brand.

Centralize Content in a Media Library:

Sales reps and distributors should never struggle to find up-to-date content. A centralized content hub with easy access to key materials—sell sheets, video assets, and promotional materials—ensures consistency across all channels.

Balance Consumer & Trade-Focused Messaging: A well-rounded strategy speaks to both audiences. Consumer excitement fuels demand, but trade relationships secure placements. Ensure that your messaging works in harmony across both sectors.

Support Emerging Brands Without Established Profitability: New brands trying to land their first key accounts or distributors face an uphill battle without established sales velocity or profitability.

  Instead of focusing solely on financial metrics, position your brand as a must-have by highlighting differentiation, unique storytelling, and consumer demand potential. Develop compelling proof-of-concept content—such as early adopter testimonials, brand collaborations, and market trend reports—to give distributors and retailers confidence in taking a chance on your brand.

  Leverage exclusive partnerships, limited-run promotions, or unique launch activations to entice key accounts before traditional sales metrics are in place.

By following these steps, craft beverage brands can maximize both sell-in (distribution & retail adoption) and sell-through (consumer demand & sales) while ensuring that content works as a unified strategy rather than fragmented efforts.

The Brands That Win

  The craft beverage industry is more competitive than ever. The brands that rely solely on consumer-facing visuals will struggle to scale. The ones that win will be those that:

•  Build demand at both the consumer AND trade level.

•  Make it easy for distributors and retailers to sell their product.

•  Use content as a tool to drive sell-in AND sell-through.

  So, next time you plan content, don’t just ask: “Does this look good to consumers?” Ask: “Does this help our buyers sell more of our product?”

Final Thoughts

  The craft beverage market is growing, but so is the competition. A solid content strategy is no longer just about attracting consumers—it’s about ensuring that everyone along your supply chain is equipped to champion your brand.

By making your content work for distributors, retailers, and trade buyers, you’re not just creating a beautiful brand—you’re building a business that scales.

Are you creating content that sells your product beyond TikTok? If not, it’s time to rethink your approach.