Page 38 - Beverage Master_AprMay2022
P. 38
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
BM040522 Main Pages.indd 36 3/25/22 1:25 PM

