Page 32 - Beverage MasterOct Nov 2020
P. 32

Craft Distillery

               on process optimization and problem-solving. By        “Be a student of the process,” said Heist. “Take
               starting Wilderness Trail Distillery as an extension   the initiative to get yourself going and choose help
               of FermSolutions, we have real-life experience in    based on actual need. A lot of money can be spent
               the right versus wrong ways of doing things to help   on non-essential consulting services that could be
               solve issues for other distillery startups. Once they   put to use in production. Because when you get
               are running, we offer our expertise-driven fermen-   down to it, it’s about what you can afford. Some
               tation products like yeast, enzymes, lab services    say to go with bigger equipment, like stills, to sup-
               and more to make sure the process is optimized       port future growth and production increases, but
               and producing the best possible yields and flavor.   along with that comes more energy requirements,
               We’ve expanded three different times since, from     the need for bigger boilers, chillers and so on.
               a one barrel per day operation to now being the      Focus on getting equipment that will serve your
               fourteenth largest bourbon producer and the eigh-    immediate needs within your current budget con-
               teenth member of the Kentucky Bourbon Trail.”        straints.”

                 Heist said that there are numerous questions to        Addressing COVID-19 During Startup
               consider when starting a distillery, and as expect-
               ed, the big one involves funding. “Make sure you       “You normally have the big five concerns when
               are properly capitalized, not only for seeing the    starting a business: namely, your business model,
               project through but for any unforeseen situations    portfolio mix, funding, appropriate licensing and
               that will arise. Make sure you can wait, if you hav-  equipment, but 2020 has put a whole new spin on
               en’t already, for the aging process before you start   things, especially where the public is concerned,”
               realizing a cash flow. Some distillers are trying to   said Donald Snyder, founder of Whiskey Systems,
               get initial cash flow through products that can be   a complete craft distillery management service.
               ready to sell in short order, like moonshine, vodka   “You’ve now got to also ask yourself how you’re
               or gin. I will warn you that sometimes the market-   going to comply and maintain the safety require-
               ing required to get any meaningful revenue out       ments for your area, including OSHA-based require-
               of these types of spirits is cost-prohibitive. Make   ments and more, and of course, social distancing
               sure you have your priorities in order. You should   if it’s still mandated later this year. In my experi-
               already know the types of distillate you plan to pro-  ence, most new startups don’t consider the current
               duce along with what feedstock you’ll use for each   requirements for their locality. How are you going

 Image Credit: Allied Boilers  type. What recipes will you follow? Are your sourc-  to achieve and continually manage the mandates
               es reliable? What are your plans to meet future      needed to comply with your local safety, health or
               growth and demand? What type of equipment do         fire regulations?”
               you need to meet these goals? Are your building
               utilities proper for your distillery plans?”           Snyder told Beverage Master Magazine that while
                                                                    opening and building anticipation of a new dis-
                 Heist suggests that just as you use your bud-      tillery in today’s market can be done within local
               get efficiently and wisely, so should you use your   requirements, it’s a different story moving forward.
               time. For example, if you’re planning on making a    “You’ve got to have some sort of system in place to
               straight whiskey, you likely have at least two years   build on and meet your needs while remaining cur-
               to design a bottle and work on marketing plans,      rent on, and working within, those state and local
               so stay focused on the current operation itself,     allowances and restrictions. You may, for example,
               including yields and great flavor profiles. Legalities,   have to prepare to spend money upfront and wait
               laws and regulations must be precisely met and       the necessary number of years to age and produce
               followed, so it’s mandatory to get help in these     a quality product. White spirits and moonshine age
               areas. FermSolutions can provide guidance, but       faster and are available to sell quicker, so you just
               the Distilled Spirits Council of the United States   have to be creative and use what you are given.
               (DISCUS) and the Alcohol and Tobacco Tax and
               Trade Bureau (TTB) are also great resources. Tap       “A good example is the option to sell your full bot-
               into other nearby distilleries that have already nav-  tles, mixed cocktails and related items to go,” said
               igated those waters, and don’t be afraid to ask for   Snyder. “If you’re in one of the states that allow
               help and guidance.                                   that, then great, that’s a quality feature you can
                                                                    build and design your business model around while

               30     October - November  2020       BEVERAGE MASTER





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