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Craft Distillery


               The good news is there are solutions that can allow  demand. The addition of another still, or a stripping
               your business to sustain the growth curve. We will   still, and more fermenters may be the best choice
               take time to consider the problem in detail, by      for you. An equipment addition can greatly increase
               examining the routes others have taken to solve      your output. The decision to add equipment is
               this exact problem. Some solutions presented here    often the first step a distillery will take to increase
               are simple and inexpensive, while other growth       output. To grow in this way, a distillery must
               options are costly and complex. To help prepare      have additional capacity to add this equipment.
               you for the future, let’s break down production      Additional capacity is measured several different
               growth options with pros and cons of each option     ways.
               to help you find the optimal path to grow your
               business.                                              First things first, do you have the space to grow?
                                                                    Additional space is needed to add the equipment,
                 Outsource Your Problem:  There are companies       raw materials, and more barrels. A bigger still,
               who produce spirits that are already aged, finished   more fermenters, and many more barrels of whis-
               and ready to go in your bottles. Sourcing whiskey    key need to go somewhere and the space must be
               from another distillery is the most direct path to   found first and foremost. The second constraint of
               an abundance of ready to bottle spirits. Barrels of   additional capacity is heating and cooling. The boil-
               aged spirits can be obtained faster than produc-     er and chiller must have enough capacity to heat
               ing them yourself and in large quantities. In some   and cool the additional equipment, without overly
               cases, distilleries will blend their whiskey with    stressing the equipment. If you have the additional
               sourced whiskey to stretch their house made sup-     capacity, let’s weigh  the pros and cons of going
               ply for the short term. Barrels of aged whiskey are   this route.
               often expensive per proof gallon, but this is certain-
               ly the quick route to continue to meet your growing    Upside of Adding Production Capacity: The
               demand.                                              addition of new distilling equipment can great-
                                                                    ly increase output of spirits produced daily. This
                 Is sourcing whiskey the right choice? If more      allows you to continue producing your product
               whiskey is needed immediately, it is likely that     from grain to glass, and maintains existing flavor
               sourcing is your only option.                        profiles and processes to produce the exact spirits
               Bringing in aged whiskey from another distillery is   you are after. The addition of another still and fer-
               an immediate solution to fulfill the demand you      menters is not nearly as expensive as an entirely
               worked so hard to create and certainly do not        new distillery build out, as long as the boiler and
               want to lose. Sourcing is the least expensive path   chiller have capacity for additional load.New equip-
               forward worth considering. When it comes to cost,    ment added to existing equipment can quickly
               other than buying the whiskey, there is no require-  increase output to work toward catching up with
               ment to spend money on equipment when you            demand.
               source whiskey.
                                                                      Downside of Adding Production Capacity: The
                 What is the downside to sourcing? Sourcing will    new still you add will be hungry and more spirits
               require a change in label to disclose the use of     mean you need more raw materials. Increasing pro-
               sourced spirits.                                     duction will invariably increase operating expenses.
               Spirits from another distillery are unlikely to have   This sharp increase in spending on raw materials,
               identical flavor profile to spirits distilled by your dis-  like grain and whiskey barrels, must be planned
               tillery. This can be a challenge if your whiskey has a  for in advance to ensure you have the capital to
               unique flavor profile.                               produce more spirits.Adding a new still will take
               Sourced spirits are not always received well by an   months to procure, install, and get it up and run-
               increasingly aware consumer and furthermore may      ning. This means it will be sometime before you are
               require changes to your marketing story to match     able to increase output. An extra still will certain-
               the sourced spirits.                                 ly increase output, but may not be a big enough
                                                                    increase to meet demand in the coming years.
                 Make More Whiskey: If there is room in your        This leads to a critical question one must carefully
               existing distillery to grow, producing more whiskey   consider when planning to add capacity. Will this
               is often the most logical decision to meet growing   planned addition of equipment meet the expect-

               36     April - May  2022     BEVERAGE MASTER





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