VOL. 2, ISSUE 4 | SEPTEMBER 2020
CRAFT SPIRITS
PACKAGING
10 TIPS FOR THESE TIMES TECHNICALLY SPEAKING
SUSTAINABLE DISTILLING
THE ART, SCIENCE AND BUSINESS OF DISTILLING
GIN-NOVATION CRAFT DISTILLERS SEE ENDLESS OPPORTUNITIES
A PUBLICATION OF THE AMERICAN CR AF T SPIRITS ASSOCIATION
CONTENTS
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FEATURES 32
Botanically Unbound The gin category is ready for a revolution. BY JEFF CIOLETTI
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MEMBER SPOTLIGHT A Watershed Anniversary Ohio’s Watershed distillery celebrates 10 years during pandemic. BY JON PAGE
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Shifting Sources Gracefully Making the Leap from Sourcing to Distilling BY MARGARETT WATERBURY
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Heading Downtown Distilleries want to be there, and cities want them there—perhaps now more than ever. BY ANDREW KAPLAN
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DISTILLING DESTINATIONS Distilling in the Hoosier Heartland Craft spirits producers in Indiana relish relationships with local farmers. BY JOHN HOLL
ON THE COVER:
Photo by Taylor Peterson
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DEPARTMENTS 14
8
Editor’s Note
12
Contributors
NEW SPIRITS 14
Recent releases from Foundry Distilling Co., Oak and Grist Distilling Co. and more
IMBIBER’S BOOKSHELF 18
Scotch: A Complete Introduction to Scotland’s Whiskies
INDUSTRY UPDATE 19
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Constellation Brands Acquires Copper & Kings American Brandy Co.
LEW’S BOTTOM SHELF 24 Figure it Out
BY LEW BRYSON
WHAT’S STIRRING 26
Flavorful concoctions from Bear Creek Distillery, Garrison Brothers Distillery and Watershed Distillery
ACSA AFFAIRS 30
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Craft Spirits Virtual Summit Brings Hundreds Together Across the Country
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LEGAL CORNER 52
HUMAN RESOURCES 60
BUSINESS SENSE 66
Legal Issues When Working with Beverage Alcohol Consultants
Wage equity should be part of your business strategy from the get-go.
BY MARSHALL FAWLEY
BY KATE BERNOT
Dalkita Architecture & Construction’s Colleen Moore advises on the distillery site selection process.
PACKAGING 54
RETAIL: ON-PREMISE 62
SALES & MARKETING 68
Craft spirits producers look tentatively toward a future at airport bars.
A public relations pro talks about PR strategies for all craft spirits producers— in pandemic times and beyond.
Consultant Considerations
Ten Tips for Packaging During the Pandemic Experts offer insights on how to get the most from your packaging during this challenging time. BY ANDREW KAPLAN
TECHNICALLY SPEAKING 58 Distilling for the Future
Through sustainability efforts, craft distilleries strive to protect the environment and their communities.
Get the Balance Right
Flight Plan
BY KATE BERNOT
RETAIL: OFF-PREMISE 64
A Small Business for Small Business
Location, Location, Location
Completely Relatable
CLOSING TIME 71
COVID’s Long Shadow
Chicago’s Independent Spirits Inc. is a boutique retailer for boutique brands. BY JEFF CIOLETTI
BY JON PAGE
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CRAFT SPIRITS MAGAZINE C EO, A M E R I C A N C R A F T S P I R I T S A S S O C I AT I O N | Margie A.S. Lehrman, margie@americancraftspirits.org E D I TO R I N C H I E F | Jeff Cioletti, jeff@americancraftspirits.org S E N I O R E D I TO R | Jon Page, jon@americancraftspirits.org M E D I A S A L E S CO N S U LTA N T | Ashley Guillermo, ashley@americancraftspirits.org A RT D I R EC TO R | Michelle Villas CO N T R I B U TO R S | Kate Bernot, Lew Bryson, Marshall Fawley, John Holl, Andrew Kaplan and Margarett Waterbury AMERICAN CRAFT SPIRITS ASSOCIATION O P E R AT I O N S A D M I N I S T R ATO R | Teresa McDaniel, teresa@americancraftspirits.org E D U C AT I O N CO O R D I N ATO R | Kirstin Brooks, kirstin@americancraftspirits.org M E M BE R S E RV I C E S A N D S O C I A L M E D I A CO O R D I N ATO R | Carason Lehmann, carason@americancraftspirits.org ACSA ADVISORS M E E T I N G S A N D LO G I S T I C S | Stephanie Sadri, HelmsBriscoe S T R AT EG I C CO M M U N I C AT I O N S | Alexandra S. Clough, GATHER PR L EG A L | Ryan Malkin, Malkin Law, P.A. P U B L I C P O L I C Y | Jim Hyland, The Pennsylvania Avenue Group ACSA BOARD OF DIRECTORS, 2020-2021 P R E S I D E N T | Becky Harris, Catoctin Creek Distilling Co. (VA) V I C E P R E S I D E N T | P.T. Wood, Wood’s High Mountain Distillery (CO) S EC R E TA RY/ T R E A S U R E R | Jeff Kanof, Copperworks Distilling Co. (WA) EX OFFICIO EAST Maggie Campbell, Privateer Rum (MA) Ryan Christiansen, Caledonia Spirits (VT) Becky Harris, Catoctin Creek (VA) Jessica J. Lemmon, Cart/Horse Distilling (PA) Tom Potter, New York Distilling Co. (NY)
CENTRAL & MOUNTAIN Gina Holman, J. Carver Distillery (MN) Colin Keegan, Santa Fe Spirits (NM) Thomas Mote, Balcones Distillery (TX) Amber Pollock, Backwards Distilling Company (WY) Colton Weinstein, Corsair Artisan Distillery (TN) P.T. Wood, Wood’s High Mountain Distillery (CO)
PACIFIC Dan Farber, Osocalis Distillery (CA) Jake Holshue, Rogue Ales & Spirits (OR) Jeff Kanof, Copperworks Distilling Company (WA) Molly Troupe, Freeland Spirits (OR)
Thomas Jensen, New Liberty Distillery (PA) ACSA PAC Stephen Johnson (VT) ACSA PAST PRESIDENTS 2 0 1 9 -2 0 2 0 | Chris Montana, Du Nord Craft Spirits 2 0 1 7-2 0 1 8 | Mark Shilling, Treaty Oak Brewing and Distilling Co. 2 0 1 6 -2 0 1 7 | Paul Hletko, FEW Spirits 2 0 1 4 -2 0 1 6 | Tom Mooney, House Spirits CRAFT SPIRITS MAGAZINE EDITORIAL BOARD Eli Aguilera, Lew Bryson, Alexandra Clough, Sly Cosmopoulos, Dan Gasper, Dr. Dawn Maskell For advertising inquiries, please contact Kate Farrington: kate@americancraftspirits.org. For editorial inquiries or to send a news release, e-mail news@americancraftspirits.org P.O. Box 701414, Louisville, KY 40270 • 502.807.4249 © 2020 Craft Spirits Magazine is a publication of the American Craft Spirits Association.
Where Science Meets Art Yeast, Nutrients, Enzymes and Bacteria
Our single source philosophy provides the highest quality ingredients, tailored technical service and education, and industry leading experience to support your needs. Your spirits are our passion, your needs are our motivation. Contact us to learn more today. www.lallemandcraftdistilling.com Š 2020
Editor’s Note
THE INAUGURAL CRAFT SPIRITS MAGAZINE PACKAGING AWARDS You don’t need me to tell you that one of the most important elements—if not THE most important—of how you market your brand is how you package it. But one thing I can tell you is that Craft Spirits magazine and the American Craft Spirits Association want to celebrate the very best examples of that in our inaugural Craft Spirits Packaging Awards, kicking off shortly after you read this. We’re looking for the top concepts in each of the major spirits categories: Best Brandy Packaging, Best Gin Packaging, Best Rum Packaging, Best Ready-to-Drink Cocktail Packaging, Best Vodka Packaging, Best Whiskey Packaging and Best Specialty Spirit Packaging (for everything else that doesn’t fit into one of the previously mentioned categories). We’ll also be presenting a series of special awards, such as Best Non-Traditional Package, a Reader’s Choice Award (which you’ll all get to vote on) and, of course, the grand prize: Best in Show. We will also be awarding Best Portfolio Packaging, which takes into account packaging design across an entire portfolio— especially if there’s a dynamic theme that cuts across that portfolio’s design. If you choose to enter the competition for the Portfolio Award, you are still allowed to enter any individual products from your portfolio into their appropriate categories. We are assembling an expert panel of judges, who all will be 100% independent of ACSA and the distilleries entering the competition. Keep in mind that the Craft Spirits Packaging Awards is a separate competition from ACSA’s annual Judging of Craft Spirits and will require a separate entry fee. (By the way, if you’re wondering about the status of the Judging of Craft Spirits, it is still happening. Like just about everything that has happened in 2020, it is being postponed and reimagined to ensure the safety of our events staff and judges. Registration will open soon for that competition, which will now take place in the spring of 2021. Stay tuned for further details!) The advantage of conducting a competition based entirely on packaging aesthetics is that no shipping is
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required. High-resolution photographs of the front and back of your bottles and cans, submitted electronically, will be sufficient. You’re certainly welcome to send the physical package, but please know that is not required, nor will it enhance your odds of scoring an award. Our best advice to you is to not spend any money on shipping and handling! We plan to e-mail a call for entries before the end of September, so keep an eye on your inboxes for that. Entry fees will be fairly modest. The cost will be around $40 per product entered for ACSA members and $55 per product entered for non-members. Entries for the Best Portfolio Packaging award will likely be $100 for ACSA members and $140 for non-members. (All prices pending final approval). Deadline for entry is November 10. We will showcase all award recipients in the December 2020 issue of Craft Spirits magazine (It’ll be the cover story). We also plan to host a virtual awards ceremony—similar to the one ACSA presented for the 2020 Judging of Craft Spirits honorees shortly before publication of the December issue. Sponsorship opportunities are available for the Craft Spirits Packaging Awards. Please reach out to media sales consultant Ashley Guillermo if you’re interested in sponsoring at ashley@americancraftspirits.org. And, if you have any questions about the competition, please do not hesitate to contact me directly at jeff@americancraftspirits.org. Cheers, and good luck!
Jeff Cioletti Editor in Chief
C R AF T S PI R I T S MAG .CO M
Thank You, Sponsors! Arglass
In an industry largely focused on products that require long production runs, we offer the glass container market a superior alternative based on our three principles: flexibility, efficiency and sustainability. Arglass will transform the glass container market in the United States by creating a network of next-generation manufacturing plants that will be at the same time flexible, efficient and sustainable. arglass.us
Fisher & Company
Fisher & Company is the leading investment bank adviser to artisan spirits, beer and wine brands. Fisher has advised on some of the most important merger, acquisition and strategic investments partnerships among American Craft Spirits Association members in recent years. linkedin.com/in/johnafisher/
ISTS
Since 2001, ISTS has offered costeffective, solid expertise in safety training, consulting and management services. We make workplaces safer, employees ready and compliance uncomplicated. ISTS has extensive experience working with the spirits industry, so our safety programs are totally customized to address the specific challenges for your site. istsky.com
The Barrel Mill
Malkin Law
Berlin Packaging
BPS Glass
FIVE x 5 Solutions
Glencairn Crystal
Berlin Packaging is the only Hybrid Packaging Supplier® of plastic, glass and metal containers and closures. We supply billions of items annually along with package design, financing, consulting, warehousing and logistics services for customers across all industries. Berlin Packaging brings together the best of manufacturing, distribution and incomeadding service providers. berlinpackaging.com
FIVE x 5 Solutions believes that software should scale with you. We’re more than a service provider: we’re a committed partner in your distillery’s success, and take pride in providing the most complete solution for your growing operation. We take your business as seriously as you do. Fx5solutions.com
Malkin Law focuses on serving the needs of the alcohol beverage industry. We regularly assist with licensing, review of industry specific agreements, trade practices and navigating state laws. Malkin Law is also honored to be Legal Counsel for ACSA. malkin.law
The Barrel Mill is one of the most respected cooperages in the industry, with a history in lumber dating back over a century. By combining old-world craftsmanship with state-of-the art equipment and technology, we deliver the best wine and spirit barrels for many of the leading craft brands. whiskeybarrel.com
BPS Glass has grown to achieve a global reach that benefits its customers and allows business models to thrive by offering a global connectivity in all the services it provides. bpsglass.com/
Glencairn Crystal is a leading manufacturer of bespoke crystal and glass. For over three decades, this family business, based in Scotland, has gained an international reputation for fine crystal and glassware. Best known for the creation of the Glencairn Glass, the official glass for whisky. glencairn.co.uk
Midwest Custom Bottling
Founded in 2008, Midwest Custom Bottling seeks to serve small customers and provide them with custom bottling solutions that fit their needs. We can find a solution to bottle your exclusive product, whether that entails a uniquely shaped bottle design or a low volume specialty test run. bottlingllc.com
Thousand Oaks Barrel Co.
Thousand Oak Barrel Co. manufactures barrels to age and serve your spirits. All products offer a variety of options for customizing and branding with your personalized design. 1000oaksbarrel.com
Moonshine University
Moonshine University is the nation’s premier educational distillery, bringing together specialists from every facet of the industry to provide education, training and professional services to start-ups and existing companies. Moonshine University is housed next door to sister company Flavorman, an international custom beverage development company. moonshineuniversity.com
Top Shelf Logistics
Top Shelf Logistics is a best in class freight provider focused solely on the spirits industry, providing clients industry proven sustainable domestic transportation capacity, service and value. Utilizing our singular multi-modal platform we collaboratively develop, implement and manage logistics solutions for craft and heritage distilleries, distributors, producers and upstream vendors. topshelflogistics.com
The American Craft Spirits Association would like to thank all of our annual sponsors and our key supporters of education. We are grateful for all of your support throughout the year. Cheers!
Briess Malt & Ingredients Co.
Since 1876, we’ve been supplying the highest quality malts in the industry. We’ve distinguished ourselves by developing the most extensive line of specialty malts made by any malting company in the world. We provide everything from malts to pure malt extracts, brewers flakes and filtering aids. briess.com
Brooks Grain
Brooks Grain has supplied distilling grains to the industry for over 50 years. The family owned and operated business proudly offers the highest quality bulk and bagged grain as well as all the expertise you need to make your distillery a success! brooksgrain.com
BSG Distilling
As the craft distilling industry grows, BSG Distilling has been focused on supplying distillers with the best ingredients from around the world. Today, the craft distilling market trusts BSG Distilling to deliver the finest ingredients at competitive prices, without sacrificing customer service. bsgdistilling.com
CIE
Private, passionate and dedicated to premium grain neutral spirits, CIE is redefining the concept of craftsmanship in spirits. Through its partnership with local farmers, global food safety standards and attention to organoleptics, look no further then CIE for world class quality in bulk or packaged form. cie.us
eGRANDSTAND.COM
Grandstand
Grandstand is a leading printing and branding company that provides custom decorated glassware, apparel, promotional items and creative services. For more than 30 years, we’ve helped businesses large and small simplify their efforts, conserve time and differentiate their brand. egrandstand.com
Park Street
Park Street delivers productivityenhancing and cost-saving back-office solutions, advisory services, working capital, compliance management, export solution, integrated accounting and human resources management solutions to more than 14,000 alcoholic beverage brands from the U.S. and around the world. parkstreet.com
Saverglass
Haskell
We are a global network of experts providing integrated design, engineering, construction and professional services to clients and communities. We bring a history of innovation and thoughtful expertise to craft the optimal solution for every project or program, regardless of size or market. haskell.com
Saverglass provides for premium and super-premium spirits, still & sparkling wines and craft beers. Recognized for its innovation, its glass-making expertise and the quality of its glass, products and designs, Saverglass is the partner of choice for brand creators, craft makers and the largest wine and spirits groups worldwide. saverglass.com
Supercap
Independent Stave Co.
We’ve been in this industry for over 100 years, during which time we’ve learned a thing or two about what makes a great barrel to age great spirits. Our R&D team and account managers have hundreds of barrels currently in experimentation. Partnering with distillers, we think outside the box to develop new products that push your vision forward. Iscbarrels.com
Supercap has been producing closures for spirits since 1999. We are present in the United States with a great sales network with partners and agents, thus being able to help and advise you in the choice of the best stopper for your spirits. supercap.it
Tapì
Tapì is an international group specializing in the design and production of miniature packaging design masterpieces. Our closures are based on cutting-edge functionality and technology, with an exclusive style that elegantly showcases each product. tapigroup.com
DISTILLERY MANAGEMENT SOFTWARE Ultra Pure
Signature Spirits, a division of Ultra Pure, is the leading independent supplier of bulk spirits in the U.S. and has the largest selection of alcohols stocked across its nine warehouses. We supply approximately 1,000 distilleries and brand owners with virtually every type of alcohol from all over the world. ultrapure-usa.com
Wine & Spirits Wholesalers of America The Wine & Spirits Wholesalers of America (WSWA) is the national trade association representing the wholesale tier of the wine and spirits industry. It is dedicated to advancing the interests and independence of wholesale distributors and brokers of wine and spirits. wswa.org
Whiskey Systems
Whiskey Systems Distillery Management software is a complete production tracking, cost accounting, inventory management and audit-ready compliance reporting system that’s tailored to the unique needs of distillers. Making, blending or bottling, Whiskey Systems handles any process and any spirit type. Unlimited users, affordable options and best in class support. whiskeysystems.com
Contributors
Lew Bryson has been writing about beer and spirits full-time since 1995. He was the managing editor of Whisky Advocate from 1996 through 2015, where he also wrote the American Spirits column, and reviewed whiskeys. He is currently a senior drinks writer for the Daily Beast, and also writes for WhiskeyWash.com, American Whiskey and Bourbon+. He is the author of “Tasting Whiskey” (Storey Publishing, 2014) and the just-released “Whiskey Master Class.” He’s also written four regional brewery guidebooks.
Margarett Waterbury is a full-time freelance writer and editor. Her work has appeared in Food & Wine, Spirited Magazine, Whisky Advocate and many other publications. She is the former managing editor of Edible Portland, as well as the cofounder and former managing editor of The Whiskey Wash. Her new book “Scotch: A Complete Introduction to Scotland’s Whiskies” will be available on Oct. 6.
Marshall Fawley is an attorney at Lehrman Beverage Law. He routinely counsels clients on a wide range of issues within the alcohol beverage industry including contracts, Federal and State tied-house laws, advertising claims, brand acquisition due diligence, TTB Voluntary Disclosures, and analysis of state franchise laws. He also has significant experience with federal and state licenses/permits, beverage formulas and labeling, and non-beverage formulas.
Andrew Kaplan is a freelance writer based in New York City. He was managing editor of Beverage World magazine for 14 years and has worked for a variety of other food and beverage-related publications, and also newspapers. Follow him on Twitter @andrewkap.
Kate Bernot is a reporter covering beer, food and spirits. She was formerly an editor at The Takeout and DRAFT Magazine; she now regularly writes for Good Beer Hunting, Craft Beer & Brewing and other publications. She is a certified beer judge and lives in Missoula, Montana, with three backyard chickens and a well-stocked bar cart.
John Holl is a journalist covering the beer industry. He’s the author of several books including “Drink Beer, Think Beer: Getting to the Bottom of Every Pint” and “The American Craft Beer Cookbook.” He is the co-host of Steal This Beer, a podcast and his work has appeared in The New York Times, The Washington Post, Wine Enthusiast and more. John has lectured on the culture and history of beer and judged beer competitions around the world.
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THE CONVENTION YOU WON’T WANT TO MISS
SAVE THE DATE JULY 25-27, 2021
LOUISVILLE, KENTUCKY
8TH ANNUAL DISTILLERS’ CONVENTION & VENDOR TRADE SHOW KENTUCKY INTERNATIONAL CONVENTION CENTER Host Hotel: The Galt House Hotel
AMERICANCRAFTSPIRITS.ORG
WALK AWAY ENERGIZED AND INSPIRED AS WE CELEBRATE THE CRAFT SPIRITS COMMUNITY
New Spirits
FEW Spirits of Evanston, Illinois, announced the release of FEW Immortal Rye, cask-strength FEW Straight Rye Whiskey proofed to bottling strength with cold-extracted “8 Immortals” tea from Denver-based tea purveyor The Tea Spot. Immortal Rye is thought to be the first product to apply this proofing technique using tea. Immortal Rye weighs in at 93 proof. An initial 6,000 750-mL bottles are being made available nationwide. Each bottle features dragon label art inspired by artwork showcased at the 1893 World’s Fair.
Old Forge Distillery has released a limited edition, 12-year-old, single barrel Tennessee Bourbon, named in honor of a hardworking, historic resident of the distillery’s hometown of Pigeon Forge, Tennessee, who just happened to be a horse. Cyclone Jim Tennessee Bourbon is aged for 12 years in new charred oak barrels. The result is a rich, deeply amber whiskey with a combination of flavors, including toffee, caramel, vanilla and oak.
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Watershed Barrel Strength Bourbon, an extremely limited and special release, is Columbus, Ohio-based Watershed Distillery’s most mature and complex bourbon to date. It is aged six years, finished in spent apple brandy barrels; distilled, aged, and bottled entirely at the Chesapeake Avenue distillery. This expression, Watershed’s first-ever barrel strength bourbon offering, was released in honor of the brand’s 10th anniversary,
This fall, Portland, Oregon’s New Deal Distillery is releasing a series of five-year malt whiskeys, debuting a new offering in September, October and November. Each small batch selection explores a different combination of traditional and experimental grains, giving each whiskey in the trio a unique profile. New Deal experimented with some uncommon mash bills and decided to put those out as a series.
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New Spirits
Seattle’s Copperworks Distilling released two limited-edition gins finished in used casks from two renowned distillers of peated Scotch whisky. Copperworks Peated Cask Finished Gin (Caol Ila Cask), rested for 10 months, evokes fresh lime, campfire, cumin, sandalwood and grilled pineapple that lead to earthy, heather, blackberry honey and citrus pith flavors. Copperworks Peated Cask Finished Gin (Laphroaig Cask), rested for seven months, has aromas of driftwood smoke, musk, pine tar, and cedar.
Freeland Spirits of Portland, Oregon—a craft distillery founded, owned, and operated by women—recently released Freeland Dry Gin, a London Dry, Navy-strength gin that leads with juniper and is backed up with notes of pine forest, mulled spices, green olive and a hint of citrus. It clocks in at 114 proof. Freeland’s new dry-style gin is more like a forest—leading with juniper—and packs a punch, made in an over-proof style. With its slightly savory edge, Freeland Dry Gin is ideal for a Martini or Negroni.
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Garrison Brothers Distillery of Hye, Texas, released HoneyDew, an 80-proof bourbon, infused with 100% Texas-made Burleson’s wildflower honey. The new bourbon has tasting notes of sweet elderberry syrup, yellow-flesh peaches, apricots, white chocolate, and of course, golden Texas honey. Bottles of HoneyDew bourbon were distributed in August to select liquor stores, bars, and restaurants across the nation, available for purchase nationwide, retailing for $89.99.
Still Austin Whiskey of Austin, Texas, has released its first high-rye Straight Bourbon Whiskey featuring grains that are 100% grown by Texas farmers. The bourbon is handmade from grain-to-glass at the distillery, aged for at least two years in new charred American Oak barrels, and bottled at 98.4 proof. Its mash bill is 70% Non-GMO white corn (the same found in Austin’s tortillas), 25% Elbon rye (which imparts a natural spice) and 5% wildfire malted barley. According to Still Austin’s master blender Nancy Fraley, the nose offers aromas of ripe tropical fruits such as pineapple, banana, papaya, mango, toasted coconut shavings and s’mores with melted milk chocolate and caramelized marshmallow.
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New Spirits
Foundry Distilling Co. turned Boulevard Brewing Co.’s Unfiltered Wheat Beer into 89 proof Midnight Ritual, an American malt whiskey. Prior to fermentation, Unfiltered Wheat traveled by tanker from Boulevard’s Kansas City brewery to historic Valley Junction in West Des Moines, Iowa, Foundry’s home. After distillation in Foundry’s towering column still and a slumber of more than two years in new 30-gallon #3 charred oak barrels, Midnight Ritual arrives with notes of caramel, banana bread and allspice.
Dripping Springs, Texas-based Treaty Oak Distilling has announced the launch of The Day Drinker Texas Bourbon, a 100% Texas-made, grainto-glass bourbon that’s born from Texas wheat and yellow No. 1 corn from Barton Springs Mill, proofed using limestone-filtered water and aged for one year under the hot Texas sun. It’s bottled at 80 proof, versus 95 proof for Treaty Oak’s flagship, Ghost Hill Texas Bourbon.
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Sagamore Spirit of Baltimore introduced a new limited-edition rye whiskey inspired by a classic cocktail: Sagamore Spirit Distiller’s Select Manhattan Finish. At a substantial 103 proof, Manhattan Finish rye whiskey is equally enjoyable mixed in its namesake cocktail or savored on its own. Sagamore Spirit’s latest limited release deconstructs the flavors of a Manhattan cocktail, finishing straight rye whiskey in separate 53-gallon cherry brandy, vermouth, and bitters barrels. The final result hints at the fresh cherry sweetness, herbaceous vermouth and botanical spice of the classic cocktail, while preserving the gentle yet full-bodied character of Sagamore Spirit’s Maryland-style rye.
Old Dominick Distillery of Memphis, Tennessee, introduced a Straight Wheat Whiskey and a Blend of Straight Whiskeys to the Huling Station lineup last month. The 90-proof Huling Station Straight Wheat Whiskey features a mash bill of 83% wheat, 12% corn and 5% malted barley and opens with a light, sweet honey, and delicate grassy indication on the nose. The palate carries a hay-forward lightness with hints of the same pale honey featured in the nose, bookended by a surprising flash of smoked oak before settling into a medium, lightly sweet finish. The 100-proof Huling Station Blend of Straight Whiskeys is a 50-50 combo of Straight Bourbon and Straight Wheat Whiskey, has a creamy, warmed honey sweetness with short bursts of a grassy note that tapers into a rye warmth.
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New Spirits
Don Ciccio & Figli of Washington, D.C., has released the first liqueur of its new La Perla Cocktail collection, Negroni Classico and Negroni Bianco Oro. Both are now available nationwide via the Don Ciccio & Figli website and in liquor stores. Each Negroni takes users to a different world. Negroni Classico is a cocktail that features refreshing citrus notes while Negroni Bianco Oro sports earthy notes of bitter orange and gentian, and is made with the Don Ciccio & Figli’s Cinque Aperitivo.
Proof & Wood Ventures has just expanded its portfolio with Exodus Rum, a blend of pot still and column still rums distilled and partially aged in Jamaica and then blended and bottled in Bardstown, Kentucky. The combination of blends brings us a rum with classic American whiskey barrel flavors of vanilla, caramel, butterscotch and tobacco with rich flavors of Jamaican rum featuring tropical fruits, ripe vegetables and a bit of funk. Bottled at 84 proof, Exodus can be enjoyed as a sipper, in a cocktail or paired with a medium-bodied cigar.
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Bardstown Bourbon Co. of Bardstown, Kentucky has released a new whiskey it produced in collaboration with Louisville’s Copper & Kings American Bourbon Co.: a nine-yearold Tennessee bourbon finished for 18 months in Copper & Kings’s Destillaré Orange Curaçao barrels. The nose features a blend of baking spice, vanilla and maple, with bright citrus notes that awaken the palate. It marks the two distilleries’ sixth collaboration.
Oak and Grist Distilling Co. of Black Mountain, N.C., recently released its first Single Malt Whiskey aged in the Scottish tradition that inspired the company’s founding. This whiskey is one of few American—and the only North Carolinian—single malts to meet the Scottish definition. The 90-proof spirit features tasting notes that include smoked stone fruit, leather, dry meadow, chocolate, citrus, sweet spice and raisin. The first release of the Oak and Grist Single Malt Whiskey consists of 521 bottles.
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Imbiber’s Bookshelf
Author Spotlight: Margarett Waterbury Why did you choose Scotch for the focus of the book? Well, besides Sterling being excited to publish a book about Scotch (a critical consideration!) the answer is actually pretty simple. It’s because it’s my favorite spirit to drink. Scotch whisky is just so delicious. There’s really nothing quite like it. There’s also a lot of meat on the bones of the category, so to speak: 400+ years of history, an enthusiastic global fan base, and a huge diversity of styles stemming from what can sometimes be very subtle differences in production. For distilling nerds, Scotch whisky, especially single malt, is really a case study in how many seemingly superficial distinctions actually have a huge impact of the character of the finished spirit. Scotch: A Complete Introduction to Scotland’s Whiskies Author: Margarett Waterbury Publisher: Sterling Epicure Release Date: October 2020 Scotch whisky is beloved around the world. But for the uninitiated, its diversity can be bewildering. This comprehensive guide to Scotch whisky history, production, and appreciation will help you navigate the world of Scotch with confidence. Along with an overview of its intricate production process and tips for visiting your favorite distillery, Scotch features profiles of more than 200 whiskies, from popular blends to coveted single malts, with a special focus on bottles you’re likely to find with ease. You’ll also find recommendations for matching the right whisky to the right occasion, from great values for everyday imbibing, to worth-the-splurge options for marking life’s biggest moments. Whether you›re a whisky newbie, a die-hard fan, or simply malt-curious, Scotch will be your go-to resource for demystifying the greatest of whiskies.
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How do you set your book apart from all of the other whisk(e)y books out there? I wanted this book to be simultaneously approachable and substantive. There are lots of great expert-level whisky books out there, and plenty of basic introductions to the category, but my goal was to strike a balance between accessibility and depth. I find that many books about Scotch whisky are very, very “serious.” I wanted to take the subject seriously, but also inject a little bit of lightness into the topic. It’s whisky, after all. It shouldn’t feel like a chore. There are also oodles of detailed tasting notes in the book, and I wrote them from an American perspective (i.e. fewer references to things many Americans are unfamiliar with, like digestive biscuits or TCP). I want readers to be able to use those tasting notes to find new whiskies they might like, but, as a person who sometimes falls asleep reading cookbooks in bed that I have never cooked from, I also wanted them to just be fun to read. Who’s the target audience? The beginner or more seasoned drinker? What can they expect to learn I wrote it with a beginner in mind, but nothing is dumbed down. A person who knows absolutely nothing about whisky should be able to read this book and walk away with a real, substantial understanding of what Scotch whisky is all about. But I’m hopeful that even folks who know their way around a dram will learn something, too. A lot of the production chapter
was written based on on-the-ground reporting from two months in Scotland, so there’s lots of detail about what’s going on inside distilleries as well as fresh interviews with many of today’s best distillers. What surprised you the most during the course of researching and writing the book? How little even big-time fans know. I could fill a separate, smaller, but probably more entertaining book with the myriad misunderstandings I’ve encountered in the whisky industry. One favorite that comes to mind is eavesdropping on two well-dressed guys in a fancy Speyside hotel talking about how Macallan is the best whisky because they age it in wood from the sherry tree. Also, after spending some time traveling in Scotland’s outer reaches, I have a deeper appreciation of how important distilleries really are to the vitality of rural communities in Scotland, even though so many are now running on near-skeleton crews due to automation. What are your thoughts on the emerging American single malt category? I think it’s very exciting—we should be excited about it, and the rest of the world should be, too. For me, one of the most interesting things about the category is how it’s unveiling just how important maturation climate is to the character of a whisky. The United States has a far broader range of climate zones than Scotland does, and I think that translates directly into a more diverse pool of malt whiskeys. I also think it’s lighting a bit of a fire under the Scotch industry regarding exploration. I heard some of the most progressive, forwardthinking distilleries, like Bruichladdich and GlenAllachie, talk about how they’re watching what’s happening here and they’re inspired by the creative risks American distillers are taking. Of course, I also think it’s good for the Scotch industry, too—introducing more Americans to malt whiskey grows the global category. What are some of your go-to whiskies? What are you drinking right now? Oh gosh, there are so many great whiskies, and it really depends on my mood and the season. I’m not usually into cask finishes, but sherried whiskies like GlenDronach Revival or any of Glenfarclas’s releases taste particularly good this time of year. I’ve also been enjoying Glen Moray 15-Year-Old, and a distillery valinch bottling of 11-year-old Kilkerran I brought home last year. In terms of American whiskeys, this summer I reached a lot for St. George’s Baller and Hotaling & Co.’s Old Potrero.
C R AF T S PI R I T S MAG .CO M
Industry Update
CONSTELLATION BRANDS ACQUIRES FULL OWNERSHIP OF COPPER & KINGS AMERICAN BRANDY CO. Constellation Brands announced that it has acquired full ownership of Copper & Kings American Brandy Co., a Louisville, Kentuckybased distillery that produces highly differentiated American Brandy, absinthe, gin, and Destillaré liqueurs. Terms of the agreement were not disclosed at press time. Copper & Kings was initially a minority investment through Constellation’s venture capital group. Since 2017, Constellation and Copper & Kings have been working to gain a deeper knowledge of the American craft brandy category and increase awareness and distribution of the Copper & Kings brand. The distillery was founded in 2014 by beverage industry entrepreneurs Joe and Lesley Heron, and uses small batch copper pot-distillation and unconventional methods, like sonic aging and solera blending, to craft a variety of non-traditional and highly innovative spirits. “As Copper & Kings moves into this next phase, we feel immense pride in what we’ve accomplished together with Constellation
Brands,” said founder and CEO Joe Heron in a news release to the industry. “Copper & Kings and Constellation have had a symbiotic relationship right from the start. Because of that shared culture of innovation, entrepreneurship, and respect for the environment, as well as a good personal relationship, Lesley and I know we are leaving Copper & Kings in good hands. The stars are beautifully aligned.” Bill Newlands, president and CEO of Constellation, said Copper & Kings represents a significant growth opportunity for the company. “American craft brandy is a fast-growing category that resonates with consumers, specifically among whiskey drinkers, and provides an excellent bridge between fine wine and craft bourbon,” said Newlands. Through its venture capital group, Constellation owns minority shares in several craft distilleries. “With entrepreneurship and quality being part of Constellation’s core values, it’s gratifying to see those values come to life through our first full Ventures acquisition in
Copper & Kings,” said Jennifer Evans, vice president of Constellation Ventures. “When making a Ventures investment, we look for brands that want to push boundaries, grow with consumers, and expand their current markets. Copper & Kings checks all those boxes, and we look forward to integrating them into our wine and spirits portfolio.” In an email to industry colleagues, Heron said that the post-pandemic era required a different approach to Copper & Kings’ business. He wrote that he and Lesley would be taking a hiatus and hinted at shifting focus to environmental sustainability.
Joe Heron
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Industry Update
WHISKEY DEL BAC HIRES FORMER HIGH WEST EXECUTIVE AS CEO T. Kent Cheeseman, Jr., long-time V.P. of Operations for High West Distillery in Park City, Utah, has been hired as CEO by Hamilton Distillers Group, Inc., makers of Whiskey Del Bac. The company was launched in 2011 by the father/daughter team of Stephen and Amanda Paul. In January of this year, the company’s Board of Directors saw the need to bring in a CEO with broad experience in the craft distilling industry. “Amanda and I had realized the company had grown in complexity beyond our industry experience and managerial skills. Kent brings so much experience and sensitivity to the table” said Stephen, president of the board. “We’re still heavily involved in running the distillery, and we have great admiration for his perspective and management style. We work so well together.” A graduate of the United States Military Academy at West Point, Cheeseman served as a U.S. Army officer in a combat tour in Operations Desert Shield/Storm, which began the 30-year executive and leadership career he brings to Whiskey Del Bac. With executive experience in numerous industries, he spent eight years leading High West Distillery’s operations during meteoric growth that led to High West’s sale to Constellation Brands in 2016. “When I studied the quality and culture the Pauls had achieved I was hooked.” said Cheeseman. “Authenticity is an oft misused term, but Whiskey Del Bac has it in spades. Stephen and Amanda, along with the Del Bac team, past and present, have crafted a truly unique and original American Single Malt family of whiskeys that speak to their origins in the American Southwest. I am privileged to have the opportunity to continue building upon this un-sourced, own-make legacy and am excited for the future.” As an American single malt whiskey, Del Bac has gained a reputation for its regional characteristics borne of the desert Southwest. One of only a handful of distilleries to malt its own barley, its use of mesquite smoke to dry malt was the brainchild that inspired its founding. Del Bac is sold in 17 states, has won numerous prestigious awards and has garnered voluminous amounts of national and regional press and accolades.
T. Kent Cheeseman, Jr.
ACSA would like to thank the Education Sponsor of the Craft Spirits Virtual Summit:
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C R AF T S PI R I T S MAG .CO M
Industry Update
VIRGINIA GOV. APPOINTS CATOCTIN CREEK’S SCOTT HARRIS TO STATE SPIRITS BOARD
TTB APPOINTS MARY RYAN AS ADMINISTRATOR
Scott Harris, co-founder and general manager of Catoctin Creek Distilling Company, has been appointed to the Virginia Spirits Board by Governor Ralph Northam, overseeing the operations and marketing of the Virginia Alcoholic Beverage Control Authority (ABC). The new board will set direction and innovate new courses for the growing Virginia ABC. Harris is joined by Jeff Bloem, founder and maltster of Murphy & Rude Malting Co.; Joshua Chandler, plant manager of Speyside Bourbon Cooperage, Inc.; David Cuttino, co-founder and CEO of Reservoir Distillery; Bill Karlson, owner of KO Distilling; Kara King, creative director of Ironclad Distillery; Gareth H. Moore, CEO of Virginia Distilling Scott Harris Co.; and Brian Prewitt, master distiller of A. Smith Bowman Distillery. “I am excited to engage in this new role and honored to have been selected for this initial board,” says Harris. “I look forward to working with my peers in the industry, and the leadership of the Virginia ABC, to innovate and continue to achieve the best results for spirits consumers and citizens in the Commonwealth.” Following his graduation from Georgia Tech, Harris spent 20 years building a software career in telecommunication systems and government IT solutions before opening Catoctin Creek Distilling Co. with his wife, Becky, in 2009. A tireless advocate for craft spirits both in Virginia and internationally, Harris was named the Entrepreneur of the Year in 2011 and awarded Small Business of the Year in 2012 by the Loudoun County Chamber of Commerce.
The Alcohol and Tobacco Tax and Trade Bureau (TTB) announced the appointment of Mary Ryan as the organization’s new administrator. In this capacity, Ryan oversees the collection of approximately $20 billion in annual federal excise taxes from the alcohol, tobacco, and firearms industries, as well as the permitting and regulation of these industries under the Internal Revenue Code and the Federal Alcohol Administration Act. “TTB is an outstanding organization with a proud past and a strong culture,” assistant secretary for tax policy David Kautter said. “It is my sincere belief that it will continue to prosper and not only maintain but improve its standard of excellence with Mary as its leader.”
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Industry Update
HONKAKU IMPORTS LAUNCHES, BRINGING THE CRAFT OF JAPAN STATESIDE A pair of expat American shochu experts living in Japan have formed an import company to bring some unsung gems within the Japanese distilling space to their home country. Stephen Lyman, founder of shochu website Kanpai.us and author of “The Complete Guide to Japanese Drinks,” and Christopher Pellegrini, author of “The Shochu Handbook,” have announced the launch of Honkaku Imports, which will focus on bringing carefully selected bottlings of Japan’s traditional spirit to the U.S., with the help of distribution partner Winebow. “Our intention is to bring in the best of the best of all of the different categories of shochu that we can get our hands on,” says Lyman. That includes the predominant styles: sweet potato (imo), rice (kome), barley (mugi), kokuto sugar, buckwheat (soba) sake lees (kasutori) and an umbrella “aromatics” category that includes shochu made with such ingredients as shiso and sesame. The company will also import shochu’s older cousin, Okinawan awamori. Honkaku plans to encompass all of the major prefectures of the southwestern Japanese main island of Kyushu, the epicenter of shochu production: Kagoshima (including the island of Amami, home of kokuto production), Nagasaki, Oita, Miyazaki, Fukuoka, Kumamoto and Saga, as well as the island prefecture of Okinawa. “So we’re doing a terroir model for that,” Lyman notes. “But then, within that, we’re going to have the Harvest Series, which will be a very, very limited supply. Our sweet potato shochu supplier, he’s agreed to sell us an allocation, but he can sell everything he makes in Japan, so we get 300 bottles for the entire country.” So, for that particular product, Honkaku will only be selling 50, sixbottle cases. Honkaku also will be launching an even more specialized tier of products, ones that have been aged for extensive lengths of time. “They have been sitting in tanks for a very long time,” Pellegrini explains. “We have a 10-year-old sweet potato shochu, a 15-year-old barley and those are going to be very limited allocations, very expensive.” The company also plans to release its Obi Collection—“obi” being the belt of a kimono—with shochu made from women-run distilleries. The label designer is female as well and Lyman and Pellegrini plan to hire women exclusively as U.S. brand ambassadors. The flagship product, meanwhile, is going to be a spirit that bridges the divide between shochu and whisky. It’s a 100% barley shochu that’s double-distilled—versus the typical single distillation of honkaku (“authentic”) shochu, the importer’s namesake—and aged in virgin oak and ex-bourbon casks. It employs koji, the mold that produces enzymes to break down starch into fermentable sugars and is the cornerstone ingredient in shochu (and sake), responsible for much of its character. The product will be named for Japanese chemist Jokichi Takamine, who was part of the first graduating class of Tokyo University in the 19th century and joined a delegation from Japan at the 1885 World’s Fair in New Orleans. He met and fell in love with an American woman, moved to Chicago and was granted a patent on the “Process of Making Diastatic Enzyme”—the first microbial patent in U.S. history. The process was used at a distillery in Peoria, Illinois, in 1894, before it mysteriously burned down. (Rumor has it that some local maltsters may have started the fire because koji is even more efficient at extracting sugars than malting). Keep in mind that the product was originally created a good quartercentury before Masataka Taketsuru traveled to Scotland, learned how to make Scotch whisky and then brought the process home and
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ultimately created the Japanese whisky industry. The product’s distiller received permission to use the name from the Takamine Family Trust. “So we’re re-releasing Takamine koji whisky as a re-release of the style that was made in 1894 and 1895 in Peoria,” Lyman says. The official name of the product is still pending approval from the Alcohol and Tobacco Tax and Trade Bureau, which has, so far, resisted allowing the term “koji whisky.” —Jeff Cioletti
Stephen Lyman
Christopher Pellegrini
C R AF T S PI R I T S MAG .CO M
Industry Update
BOOT HILL DISTILLERY BREAKING GROUND ON MULTI-YEAR EXPANSION PROJECT
40-PLUS SUNSHINE STATE DISTILLERIES LAUNCH FLORIDA CRAFT SPIRITS ASSOCIATION
Boot Hill Distillery of Dodge City, Kansas, is breaking ground on the first phase of a multi-year expansion project, whose initial phase will include the construction of a rickhouse to age barrels and a warehouse for inventory and supplies. Additional phases will include buildings for packaging, warehousing, additional rickhouses, malt houses and other agri-tourism facilities. Beginning in 2014, Hayes and Roger Kelman purchased and undertook renovation of the historic, former city municipal building built atop the footprint of the original Boot Hill Cemetery. Prior to this purchase, the building was not occupied and fell into great disrepair over the years. It was deemed urban blight and slated for demolition. After nearly two years of restoration, the distillery opened its doors to the public in 2016 and began the distillation and aging process of their spirits.
Raising Florida spirits even during the most challenging of times, more than 40 Florida craft distillers have joined together for a common cause and have established the Florida Craft Spirits Association (FCSA). Fees for the membership-based organization range between $1,000 and $2,000 and benefits include access to unified industry-wide lobbying efforts at state and federal levels, public relations, media, industry-tailored education and training programs, state and national level mutual support, and more. Internally, the members are a community of proud entrepreneurs with a passion for the art and alchemy of hand-crafting spirits who willingly share ideas to help launch, grow and sustain their livelihoods. The FCSA maintains a code of conduct, as well as standards of production, ensuring those who proudly display the badge represent the best of the industry. The 2020-2021 Executive Leadership team includes President David Cohen, Manifest Distilling; Vice President, Matt Armstrong, St. Petersburg Distillery; Treasurer, Matt Allen, Cerberus Distillery; Secretary, Jeremy Craig, Copper Bottom Distillery. Visit FloridaCraftSpirits.org.
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FIGURE IT OUT BY LEW BRYSON
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C R AF T S PI R I T S MAG .CO M
lew’s bottom shelf
I know things are crazy. You’re trying to keep your business afloat, balancing debt, government money, furloughed employees and medical insurance premiums. You’ve got to stay ahead of regulations, mandates, orders and directives that change from week to week. That’s not all. You may be in a city that is rebuilding after protests and riots, you may be helping to keep your community alive around you. You may be in a vacation area in a time of no vacations, and now it’s just you and the town and a much smaller pool of local dollars. And while you’re worrying about your family, and your plans for a very vague future, you’ve somehow stolen five minutes to read my damned column. Thanks for that, but … Why are you doing this? It’s a fair question. What led you to think you could do this, that you wanted to do it? What did you say to the people who thought you were nuts? I’m in the same boat. Here I am, scrambling to find things to write about when half of the industry is closed, shut off. I get it. So why are you doing this? You stuck to it through the hunt for capital, through writing a business plan, through finding the right spot for your business, which wasn’t really the right spot, but it was the rightest one you could afford. You made promises: to yourself, to your family, to your partners and your employees. So when that first batch out of your new still was nasty-assed, green-looking bong water, sure, you swore and wondered what went wrong, but you didn’t quit. You had promises to keep, and you made it work. When you selected barrels for your first bottling of sourced whiskey, you wondered if it was the right thing to do, and you wondered what your selection might have that no one else’s sourced whiskey had. Would you be able to make whiskey that was anything like it? Did you even want to make whiskey like the stuff you may have sourced? Maybe your goals changed, maybe what you planned to make got caught in the gears of the market. I know at least one distillery that planned to make its money on gin and white rum, but made a batch of rye whiskey just for fun, and after three years in the wood tasted something that made it clear it should have been making more. Maybe the eau de vie market just wasn’t up to your skill at making spirits that tasted like bright and lively essences of sun-ripened fruit. Maybe
your amaro was great but way ahead of the curve. What did you do then? Did you change your goals so you could attain your goals? Now you’re making hand sanitizer (and who the hell thought they’d ever be doing that?) and watching your carefully crafted cocktail program go up in smoke; maybe go out the door if you’re lucky. You’ve pivoted so many times there’s a pit ground into the floor, you might be hanging by the last foot of rope and tying a knot in it. What are you going to do now? To answer that, let’s go back to the first question. Because that’s where you’ll find the answer to the big picture, then and now. Why are you doing this? If you’re doing this for the money, get out. Sell the assets and move on. There’s no shame in that. If you’re doing this for the personal satisfaction of running a business, it’s time for a gut check. Is the satisfaction still there? If you’re doing this because you love finding the best path to the goal, teasing new formulations into a shimmering glass of flavor and fire, because you believe that gin, rum and whiskey run through your veins, you’d better put this down and get back to work. “I have nothing to offer but blood, toil, tears and sweat,” Winston Churchill told Parliament when he formed his new wartime government in 1940. What he offered was actually worse, as he confided to his military adviser after the speech. “Poor people. They trust me, and I can give them nothing but disaster for quite a long time.” It’s not that bad, not quite. But the situation continues to change, and no one knows what will happen next month. If you’re doing this because you love it, it’s time to put down the magazine and pick up the wrench. Let’s make some spirit. Let’s do what we have to do. Tie a knot in it, hang on, and make good drink. I’m counting on you. ■
Lew Bryson has been writing about beer and spirits full-time since 1995. He is the author of “Tasting Whiskey” and “Whiskey Master Class.”
If you’re doing this for the personal satisfaction of running a business, it’s time for a gut check. Is the satisfaction still there? C R AF TSPIR ITSMAG.COM
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WHAT’s Stirring
DRINKS TO SAVOR FROM ACSA MEMBERS Old Custer Named for the fictional book that appears in Wes Anderson’s “The Royal Tenenbaums,” this cocktail from Watershed Distillery in Columbus, Ohio, drinks as balanced and centered as any of the director’s famed symmetrical compositions. The citrus peels that make Watershed Four Peel so refreshing are met with fluffy fresh squeezed orange juice and the bittersweet notes of grapefruit and rhubarb present in the Aperol. A touch of lemon juice adds enough acid to make this feel near electric on the tongue, and its call for fresh citrus makes this a suitable cocktail all the way through winter. “I always wanted to be a Tenenbaum, you know.” Ingredients 1 ounce Watershed Four Peel Gin 1.5 ounces Aperol 1.5 ounces fresh-squeezed orange juice .25 ounce fresh lemon juice Directions Place all ingredients in a shaker tin, and shake until well chilled. Strain over ice in a Collins glass, and garnish with fresh citrus peels.
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Brown Derby Bear Creek Distillery’s Straight Bourbon Whiskey is the star of this cocktail from the Denver-based distillery. A silver medalist in ACSA’s 2020 Judging of Craft Spirits, the bourbon is matured in 53-gallon American white oak barrels a minimum of two years, with Colorado’s warm days and cool nights helping to shape its identity. Ingredients 1 1/2 ounces BCD Straight Bourbon 1 ounce fresh grapefruit juice 1/2 ounce honey syrup Directions Add all ingredients into pint glass. Hard shake and strain into chilled coupe glass.
L. Bee. J. A new release from Garrison Brothers Distillery of Hye, Texas, is the backbone of this cocktail. The 80-proof HoneyDew is infused with 100% Texas-made Burleson’s wildflower honey, making for a smooth, light bourbon with a subtle honey finish. Ingredients 1 1/2 ounces Garrison Brothers HoneyDew 1/4 ounce Gran Classico 1/4 ounce Bénédictine 1/4 ounce Drambuie 2 dashes Angostura Bitters Directions Add ingredients to a mixing glass over ice. Stir and strain ingredients into a rocks glass. Garnish with a lemon and orange peel.
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The American Craft Spirits Association would like to thank all of our annual sponsors and our key supporters of education. We are grateful for all of your support throughout the year. Cheers! BEER BRANDING & LABELS
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ACSA Affairs
CRAFT SPIRITS VIRTUAL SUMMIT BRINGS HUNDREDS TOGETHER ACROSS THE COUNTRY Nearly 500 craft spirits producers and industry suppliers gathered from the comfort of their own homes, offices and distilleries for ACSA’s first-ever Craft Spirits Virtual Summit: A New Journey, August 11-12. While we were sad that the pandemic kept us from greeting everyone in person, it was wonderful to connect with our dynamic industry in the virtual world. We want to extend an extra special thanks to our Education Sponsor: Total Wine & More. After a keynote address by Joth Ricci of Dutch Bros Coffee, ACSA President Becky Harris (Catoctin Creek Distilling Co.) announced the launch of the STEPUP Foundation, the internship program that aims to build a more diverse and inclusive craft spirits industry. During a Town Hall, ACSA Board Member and DtC Committee Chair Dan Farber (Osocalis Distillery) updated attendees on the push for allowing direct-to-consumer shipping. Farber released ACSA’s vision and mission statement on this initiative: Vision Consumers can freely choose the relationship experience they prefer with our companies and the products we produce. Mission To grow small business by allowing consumers to safely and responsibly purchase spirits from any distillery by the method they choose. Also during the Town Hall, we heard an address from Senator Ron Wyden (D-OR), our lead Senate sponsor on S.362, the Craft Beverage Modernization and Tax Reform Act (CBMTRA) which would make FET relief permanent for craft distilleries, among other alcoholic beverages. The Senate bill— including its counterpart in the House—has widespread bi-partisan support. In a Q&A
with ACSA past presidents Mark Shilling and Tom Mooney, Wyden explained why the bill has not been brought to the floor for a vote. “In the U.S. Senate … it only takes one Senator to throw sand in the gears, to block everything procedurally and we don’t have every Senator. We have a fabulous showing [but] we don’t have every showing,” said Wyden. “You need two things. You need to build support with the leadership and then you need individual senators to go to the leaders and say, ‘This is important to me. I’ve just been home for a month talking to folks, they’re really hurting. I need you to put this into the bill.’” Wyden said he will continue the fight to make FET relief permanent. “We will continue to push as hard as possible for permanence,” he said. “I’m going to roll up my sleeves and work to get it done.” Wyden urged producers of craft spirits to reach out to their legislators to continue to ask support for the bill. “Walk away from this knowing that to have this many sponsors of a major piece of legislation doesn’t happen by osmosis. It happens because you built it. You went legislator to legislator and you went to meetings. That is a monumental achievement. There are people who have tried to build that kind of support in decades and we managed to do it in two years.” The summit spanned two days and included a wide array of educational presentations and a virtual exhibit hall. Thank you again to everyone who attended, presented and participated in this virtual gathering of the craft spirits community. We concluded the summit with a trivia session with our own Jeff Cioletti. Congratulations to our grand prize winner, Amber Pollock of Backwards Distilling Co., who won free registration and two nights
hotel at the next ACSA Distillers’ Convention and Vendor Trade Show, which will take place in Louisville, Kentucky, July 25-27, 2021. We also extend our congratulations to secondplace winner John Fetzner of Cart/Horse Distilling, winning a free registration to the Louisville convention, and third-place winner Colleen Moore of Dalkita Architecture & Construction, securing one free night at the host hotel in Louisville. If you missed some of our virtual summit sessions, now’s your chance to catch up. Our presentation recordings are available for you to access at your leisure. Please note, you can only access the recordings when logged in to the ACSA website, with the email address you used when you registered for the Craft Spirits Virtual Summit. If you did not attend the Summit and would like to access the recordings, there is a fee to access the material. If you have trouble accessing the recordings, please contact education@ americancraftspirits.org.
ACSA ANNOUNCES STEPUP DIVERSITY INTERNSHIP PROGRAM ACSA has announced the launch of the Diversity Internship Program through the Spirits Training Entrepreneurship Program for Underrepresented Professionals (STEPUP) Foundation. ACSA created the program because we recognize a lack of diversity in the alcoholic beverage sector and that a diverse workplace contributes to higher performance, innovation, creativity and overall growth for DSPs.
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STEPUP will facilitate workplace diversity in the spirits industry through training and job exposure for those of different races, genders, disabilities and sexual orientations who are interested in working in the spirits sector. This will be offered annually to a minimum of two candidates, through a formal application process, with selection by a committee of the Foundation. The Internship will cover a com-
prehensive training curriculum, including segments in production, compliance, marketing, sales, hospitality and business management. The STEPUP Foundation is establishing an Advisory Board, consisting of seven members, with a diverse blend of talent pulled from the ACSA Board of Directors, the beverage alcohol community and the communities served by this board.
C R AF T S PI R I T S MAG .CO M
SPIRITS PRODUCERS FROM 45 STATES VIRTUALLY SCALE CAPITOL HILL DURING PUBLIC POLICY CONFERENCE In a year full of pivots, the latest was the transition to a virtual event for the annual American Craft Spirits Association (ACSA) and Distilled Spirits Council of the U.S. (DISCUS) Public Policy Conference, which was held Sept. 15-16. A record number of attendees virtually converged on the nation’s capital to advocate for the industry’s greatest priorities. More than 300 distillers, trading partners and industry allies from 45 states logged in at a time when it’s more critical than ever that the spirits industry’s voices be heard on Capitol Hill. During nearly 200 virtual meetings with Senators and House members from both sides of the aisle, representing nearly all U.S. states, spirits producers urged support for the Craft Beverage Modernization and Tax Reform Act (CBMTRA) HR 1175 in the House and S.362 in the Senate. Additionally, attendees called for the end of trade tariffs that have been severely impacting U.S. spirits exports and asked legislators to weigh in with their concerns about a flawed proposal under review at the U.S. Department of Agriculture (USDA) and Department of Health and Human Services (HHS) to change the definition of moderate drinking for men in the U.S. Dietary Guidelines (DGA). The temporary reduction of the federal
excise tax (FET) is set to expire on December 31, 2020, if Congress takes no further action. Initial temporary FET relief became law on January 1, 2018, when the federal tax was reduced from $13.50 to $2.70 per proof gallon on the first 100,000 gallons. The reduction passed as part of the broader Tax Cut and Jobs Act of 2017 and was originally set to expire on December 31, 2019. Following the continuous efforts of ACSA and DISCUS, Congress last December passed a one-year extension on the reduced tax rate, which will expire on December 31, 2020. The spirits industry’s main objective is to make the $2.70-per-gallon rate permanent, by convincing Congress to pass the bi-partisan CBMTRA. Senators Ron Wyden (D-OR) and Roy Blunt (R-MO) introduced the Senate version, S.362, which has the support of 74 Senators at last count. Representatives Ron Kind (D-WI) and Mike Kelly (R-WI) are behind the House version, HR 1175, and have also gained the support of three-quarters of the House. To keep the momentum of the conference going, please continue to contact your Senators and Representatives and urge them to support permanent FET relief and an end to trade tariffs. Additionally, demand that they work to prevent the proposed change to the
definition of moderation in the Dietary Guidelines for Americans. For the Senate: (202) 224-3121 • www.senate.gov For the House of Representatives: (202)-225-3121 • www.house.gov ACSA and DISCUS would like to extend a special thanks to ByQuest, Five x 5 Solutions, Glencairn Crystal and the Wine and Spirits Shippers Association for sponsoring the Public Policy Conference.
ACSA ANNOUNCES NEW BOARD MEMBERS The American Craft Spirits Association (ACSA) this summer announced the reelection of veteran Board members Jake Holshue of Rogue Ales & Spirits (OR) and Colin Keegan of Santa Fe Spirits (NM), as well as the election of three new distillers to the Board of Directors: Gina Holman of J. Carver Distillery (MN), Jessica J. Lemmon of Cart/Horse Distilling (PA), and Tom
Colin Keegan
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Gina Holman
Potter of New York Distilling Co. (NY). The installation follows a digital election, with voting participation from nearly 70% of the organization’s membership. Together, returning and newly elected board members will liaise with Board President Becky Harris of Catoctin Creek (VA), Vice President P.T. Wood of Wood’s High Mountain Distillery (CO) and Jeff Kanof of
Jake Holshue
Copperworks Distilling Co. (WA), who were elected to Board leadership positions in April. Together with CEO Margie A.S. Lehrman, the group will address the key issues facing the craft distilling industry, including COVID-19 industry recovery efforts and Federal Excise Tax reform. To see a list of all current board members, go to page 6.
Tom Potter
Jessica J. Lemmon
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Botanically Unbound The gin category is ready for a revolution.
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he spirits world—arguably, the entire beverage alcohol universe— focuses a great deal of time and energy on classification—almost to a fault. While there are obviously legal reasons to categorize styles and production protocols—namely, for Alcohol and Tobacco Tax and Trade Bureau (TTB) and other regulatory definitions—it may be a fool’s errand to try to fit every product so neatly into a pre-determined box. There’s often immeasurable opportunity when some things are left largely undefined. And that’s really where the American gin category is right now. For a spirit that, for centuries, has been so tied to stylistic orthodoxy and tradition, it offers a tremendous amount of elbow room for distillers to get experimental. And, as an industry, they’ve barely scratched the surface. “I think it’s kind of the Wild West in terms of the flavors you can achieve,” says Molly Troupe, master distiller and partner at Freeland Spirits in Portland, Oregon. “There are about 300 botanicals that are food-safe to use … and the combinations that you can create with them are pretty endless. And I think that’s what makes it such an exciting category. There’s still so much room for gins that hit so many different flavor notes that haven’t even been set yet.”
And consumers increasingly have become receptive to the category—though you wouldn’t know it unless you looked beyond the full category numbers. Overall gin volume (pre-pandemic) has been basically flat, declining 0.1%, according to the IWSR. However, category value increased 3.1%, driven by the higher pricepoint segments, including craft. Largest volume gains last year were in the ultrapremium segment—those priced at $45 and above per bottle—with an increase of 27.7%. The second-highest price tier, super premium—$30 to $44.99 per bottle—grew by 13.5%. Volume for the $22.50 to $29.99 premium tier—a much larger group, volumewise—gained 5.5%. Pushing Through a Pandemic The obvious elephant in the room is a rather large one named COVID-19. No one can be 100% sure of the long-term effects the pandemic will have on sales of craft spirits, let alone gin. IWSR market analyst Ryan Lee says the reality is likely to be “multifaceted.” “While certainly Americans from all demographics are enjoying premium-plus spirits and gin, the purchase frequency tends to be higher for those with more disposable income,” Lee observes. “But for all Americans
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who continue to bring in the same or roughly the same income during the pandemic, they have likely seen their disposable income rise. These people are not venturing to the onpremise at the same level as pre-COVID, are not spending as much time on commuting— gas, train, subway car maintenance—going on international vacations, etc. These consumers are looking to treat themselves in the comfort of their own homes.” Premium-and-above gin segments, Lee adds, are likely to be more resilient to recession— especially those brands that consumers had discovered pre-pandemic, which are likely to remain top of mind. That may bode well for craft spirits producers that have been consistent about building their fan bases, especially among consumers in their region. Lee points to surging cocktail ingredients, particularly gin-cocktail-friendly products like aperitifs and vermouth, as an indicator that consumers increasingly are doing their own mixology. “We are also seeing some retailers selling home barware report a surge in sales for bar carts and other cocktail tools,” he says. “Without paying the on-premise markup, these consumers will be more inclined to purchase premium-plus gin and experiment with different brands within the price range they are comfortable with to stock their home bar.” Departing London They’re also more likely to reach for flavor profiles that push the boundaries on what they traditionally thought of as “gin.” London Dry has been the dominant style for generations and will continue to be so for the foreseeable
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PHOTOGRAPHS: LINDSAY GALLUP AND TAYLOR PETERSON
BY JEFF CIOLETTI
“There really are no boundaries—there’s nothing definitive about what we can’t do. We just have to make sure all of our ingredients are approved and all that and that juniper has to be one of them, but I love that we have a lot more room to be creative and play with things not traditionally in gin.” —Abby Titcomb of 3 Floyds Distilling Co.
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future. But there’s a lot more room under the big gin tent these days than there used to be and there’s likely to be a flavor profile to suit every legal-drinking-age spirits imbiber—even the most ardently juniper-averse. There’s enough of a range to make whatever negative gin-associated memories consumers may have fade and help dispel any preconceived notions that may exist about what the spirit is “supposed to” be. “People have their one bad experience,” offers Abby Titcomb, head distiller at 3
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Floyds Distilling Co. in Munster, Indiana, the spirits-making arm of the craft brewery of the same name. “[They’d say] ‘I don’t want to drink pine needles’—I would say that, too. I call them ‘gincidents.’” Among 3 Floyds’s products are Oude Boatface—its “not normal” London Dry style—and Wight VVitch Gin, which took the Best of Class award for gin at the 2020 ACSA Judging of Craft Spirits competition. Described as “Midwest Aggressive,” Wight VVitch features (in addition to juniper), lime
peel, lemongrass, ginger and pink peppercorn. “Wight VVitch is the perfect example of our gateway gin,” Titcomb says. “We pour it in our tasting room for someone—they’ll say they’re really not a gin drinker, they don’t want to try it. We’ll say, ‘Just try it,’ and then they smile and say, ‘Holy s---, I’m a gin drinker now.’ It doesn’t always have to be this juniper bomb.” Later this fall, 3 Floyds plans to expand its offerings with a winter gin. “There really are no boundaries—there’s nothing definitive about what we can’t do,” she adds. “We just have to make sure all of our ingredients are approved and all that and that juniper has to be one of them, but I love that we have a lot more room to be creative and play with things not traditionally in gin.” Titcomb is eager to work with different macerations and processes, really drawing out the flavors of a wide range of botanicals, both traditional and unconventional. She likes to play with different barks and teas, including the smoked lapsang souchong tea, which she describes as “super-smokey,” “overpowering” and kind of a “bully,” but one that can be honed to create a flavorfully dynamic, yet highly drinkable gin. The only limits these days—besides the obvious legal ones—seem to be gin distillers’ own imaginations. “I’m heartened by the fact that there are plenty of people who are flocking to gins that are different, that don’t necessarily hew right to the London Dry style,” says Lance Winters, master distiller at St. George Spirits. “I think that over the course of decades, London Dry—which is a beautiful style—didn’t necessarily resonate with everybody.” Not only is the Alameda, California distillery a craft spirits pioneer—Jorg Rupf founded St. George in 1982—it’s also a long-time experimenter within the gin space. Its three flagship gins—Terroir, Botanivore and Dry Rye—offer radically different taste experiences and have been on the market for nearly a decade. The distillery created Terroir Gin as a nod to the Northern California landscape, prominently featuring Douglas fir, California bay laurel, coastal sage and other botanicals from the region that harmonize to evoke a sense of place. Botanivore, balances 19 botanicals—angelica root, bay laurel, citra hops and dill seed among them—creating an earthy/spicy/floral concoction that works well in traditional gin drinks like martinis and good ol’ G&Ts. If Dry Rye’s name didn’t already give it away, its 100% pot-stilled rye base is the star of the show, sharing a bit of a kinship
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with the Dutch genevers that predated London Dry gin. If devout whiskey drinkers were thinking about dabbling in the gin category, this is a likely candidate with which they could begin their journey. “The whole reason that we chose rye for the Dry Rye is the fact that rye itself, when it’s distilled, has some really beautiful, peppery qualities—juniper has great peppery qualities,” Winters reveals. “So we tried to bounce those off of one another. And then every other botanical in there has at least one foot in the pepper world.” In addition to including an obvious component like black pepper, Dry Rye features caraway, lime peel and grapefruit peel, all contributing a varying range of pepperesque notes. Typically when distillers talk about innovation in gin, it’s focused primarily on the botanicals and the proportions with which they’re used. It’s far less common for there to be the sort of attention on the base spirit, as there is with St. George’s Dry Rye. But it could be more prevalent as more American craft producers dabble with genever-style spirits—like Freeland Spirits, which produces its own riff on the category in the form of its Geneva. Genever-esque brands are still categorized under gin per the TTB and likely won’t become a category unto themselves in the States, especially if the EU has anything to say about it. “It’s important to protect [genever’s European provenance], just like it might be to protect Champagne or Burgundy,” says Jason Parker, co-founder and president of Copperworks Distilling Co. in Seattle. “I think it’s fine to have genever or jenever as a standard that only those countries can use, but there’s no reason we can’t have a ‘traditional gin’ category. The reason we don’t have it yet is it’s just awkward. We’re in the early days of bringing gin drinkers and new drinkers into this emerging field of gin.” However, fast-forward a few decades and the story might be different. Just think about how far the beer category has come to get a sense of how gin could evolve. “We drink beers now that would have been sewered by the brewer, and if they weren’t destroyed by the brewers, they would be laughed out of restaurants and bars, grocery stores and liquor stores,” Parker points out. “[They’d say] ‘whatever you just made, this sour beer, with all this wood barrel-aged flavor and this fruit in it, it’s an abomination. It’s not beer, it’s just weird.’ But now it’s winning awards at the Great American Beer Festival
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“There’s still so much room for gins that hit so many different flavor notes that haven’t even been set yet.” —Molly Troupe of Freeland Spirits
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Lance Winters and Dave Smith of St. George Spirits
Into the Wood No one would have thought just a handful of years ago that barrel-rested gin would have become the burgeoning segment that it is today, but here we are. And Copperworks has been among the most innovative within that space, having released an extensive series of gins with different cask finishes. Current editions include its New Oak Cask Finished Gin and a pair of Peated Cask Finished Gins it released in late August. Copperworks turned to a couple of Islay single malt icons for those: one was finished in Laphroaig casks and the other in those that previously held Caol Ila. “It’s really interesting to see the difference with those,” says Copperworks co-owner and vice president Jaff Kanof. “[Some would think] that if you put gin in those barrels, all you get would be a little smokiness from the peat. That couldn’t be further from the truth. The Laphroaig is much heavier, much smokier [than the Caol Ila] and they are completely different products.”
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Past editions of the Copperworks Cask Finished Gin series have included Cognac Cask, Amaro Cask, Plum Cask, IPA Cask, Tonic Cask, Amaretto Cask, Pedro Ximenez Sherry Cask, Chai Cider Cask, Oloroso Sherry Barrel, Port Barrel, Mezcal Barrel, Rum Barrel, Malt Barrel and even one from a barrel that previously held Copperworks’s own gin. “If you think about the old days of gin, all the way back to genever, those were kind of like new make whiskeys flavored with botanicals, and frequently transported in barrels—not for the barrel conditioning but simply because that’s the way they were transported,” Parker says. So, in a sense, Copperworks and other barrelrested gin makers have history on their side. Copperworks hasn’t been afraid to take risks with different barrel types because even the ones Parker feared would turn out terribly ended up working quite well. “The first one that was really risky in my mind was the tonic barrel gin,” Parker recalls. That particular barrel had been around the block a few times. It held Kentucky bourbon for seven years, then it held gin for six months
and then tonic syrup before Copperworks put its batch of gin in it for four months. “From that point on, we were like, ‘You know what, we could just try anything,’” Parker says. “I wondered if it would be a bad idea to put gin in a mezcal barrel. It turned out to be great.” Base Instincts The next great frontier for gin, beyond wood aging and radical botanical combinations, is likely to involve a greater emphasis on pushing the envelope with the base spirit, well beyond the traditional neutrality that’s been the standard in London Dry and other modern styles—and beyond even the trademark graininess of genever and its ilk. “I think that, especially in parts of the world where the gin regulations aren’t that strict, and you don’t necessarily have to have a neutral base, you can have a base that has more character to it, and really be able to produce this new kind of flavor that hasn’t been produced before,” says Freeland’s Troupe. “I’ve seen people use fermented milk [as a base]. People have historically used
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PHOTOGRAPHS: BEN KRANTZ (THIS PAGE) AND JON PAGE (OPPOSITE PAGE)
and people stand in line to buy a bottle of it for $150.”
“I’m heartened by the fact that there are plenty of people who are flocking to gins that are different, that don’t necessarily hew right to the London Dry style. I think that over the course of decades, London Dry— which is a beautiful style—didn’t necessarily resonate with everybody.” —Lance Winters of St. George Spirits
whatever kind of substrate that they could make alcohol from and that’s kind of where [the industry is] going. Is it safe to consume, does it produce a nice flavor and what kind of botanicals can really elevate it?” At least in this part of the world, the tether on gin producers—and what exactly makes gin gin—is relatively loose. “The TTB says that juniper has to be the predominant character in gin, but that’s such a subjective regulation,” argues St. George’s Winters. Remember, the regulatory agency doesn’t quantify how much juniper you have to use. “Even if we said [juniper] has to be 50% of the botanical content, I could find something to make up the other 50% that would completely edge out all of the character of the juniper,” Winters offers. There is some debate about how far we can move the goalposts on gin before it stops being gin. But that’s not likely an argument that’s going to be settled anytime soon. Again, just look at what’s happened with beer. “In the old days,” says Paker, “if you brought a traditional English bitter, which we called a
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pale ale, to the market, when everyone who was drinking beer at that time was drinking an American pilsner—Budweiser, Coors, etc.— first [people would ask] ‘Why do you call it ‘pale?’ It’s brown. And second of all, it has way too much flavor, way too much malt, way too much hops, it’s not an interesting beer. This is not the kind of beer that’s going to make it.’ Turns out they were wrong.” Kanof mostly agrees with his colleague, though he believes you have to pull the reins at some point. “There is some risk to how some products are sold and marketed as gin, because if you get too far away from it, it starts to become bad for gin producers,” Kanof says. “If a consumer picks up a bottle and it tastes like limes and lemons and has almost no juniper, but it says gin on the label, they now think that’s gin.” And then when those same consumers are presented with something substantially more juniper-forward, they might get turned off— perhaps, Kanof says, even angry. “They’re going to write something on the internet about how this gin sucks because
it tastes like pine trees,” Kanof warns. “Yeah, that is part of gin. I’m on board with Jason, that it should expand and there are always going to be people who want the more traditional, but there does have to be a limit at some point, in terms of how you’re going to categorize this and legally label it.” Titcomb of 3 Floyds is all for the challenge of testing that limit. “I’ve always been kind of ‘Go big or go home.’” Titcomb says. “We’re all kind of weird here, all turned up to 11. I have a motto that it’s better to break, than bend.” Winters hopes to see more of that kind of spirit—no pun intended—within gin distilling. Producers, he says, should be striving to make a brand-new statement about the category. “Finding a way to distinguish yourself and gin with its almost bottomless array of different botanicals that you could use and then different levels of those botanicals, offers an infinite number of variables and you can make something that is totally different from everything everybody else has out there,” he says. “It’s hard to imagine a category of spirit that has more flexibility to it than gin does.” ■
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ACSA Member Spotlight
Greg Lehman
“You can have cash reserves, you have contingency plans, but I think a great team trumps that every time.” —Greg Lehman of Watershed Distillery
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A Watershed Anniversary Ohio’s Watershed Distillery celebrates 10th anniversary during pandemic. BY JON PAGE
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reg Lehman could always picture a similar scene in his mind. A line of cars snaking down the street and around the block through two traffic lights. Each driver’s desire: a coveted bottle from Watershed Distillery of Columbus, Ohio. But before that vision became a reality this April, Lehman never would have guessed the true reason why people flocked to the distillery. “I was just scratching my head,” says Lehman, the founder and CEO of Watershed. “I’ve always thought that someday we’re going to make a special release bourbon, maybe a gin, that people are going to line up around the block for. And here it is. People are lining up around the block for our hand sanitizer that we haven’t even sold before. I was like, ‘I’m not going to complain. I’m going to embrace it.’” Of course, Lehman also never would have guessed that Watershed—best known for its Four Peel Gin and bourbon—would celebrate its 10th anniversary during a global pandemic. What was supposed to be a year filled with large gatherings and special events and releases has morphed into a year of uncertainty in which Watershed announced that its Kitchen + Bar will not reopen until 2021 at the earliest. Despite the turmoil, Watershed employees credit Lehman for staying positive and guiding the company through the pandemic. “I have a lot of respect for how he’s helped us maneuver some pretty rocky waves,” says Nicki Moore, Watershed’s director of sales. “Coming out on the other side feeling like we have a plan is a position a lot of people don’t have right now. It’s been a crazy year, but somehow we’re all optimistic about finishing it out strong.” Lehman says Watershed started the calendar year with three strong months of sales. While the pandemic took its toll on the Kitchen + Bar, hand sanitizer production and bottle shop sales have helped the distillery stay afloat. In some ways, the distillery’s 10th year of business shares similarities with its first year in business. Lehman and co-founder Dave
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Rigo enjoyed initial success when they debuted their gin leading up to the holiday season in 2010, only to see a sharp decline in the new year. “We weren’t taking paychecks, and it was just [me and] my business partner, we hadn’t hired anybody,” recalls Lehman. “We were making the stuff, we were selling it, we were doing everything. It was just every month out there selling, every month losing money and watching the bank account go down, down, down. “I would have told you in year one I was really scared if we were going to make it. There was probably a two-week period in March [this year] where I had a lot of those same feelings, mainly because it was unknown.” One of the biggest keys to the distillery’s eventual success, Lehman says, was putting together a team of the right people in the right seats. And perhaps that was never more important than when the pandemic struck. “They were able to pivot quickly and keep a positive outlook throughout it,” Lehman says of his team. “You can have cash reserves, you have contingency plans, but I think a great team trumps that every time. It’s been pretty amazing to see … the people that weren’t necessarily leaders step up and do some really great things through this.” A recent bright spot is a surge in offpremise sales, which have traditionally been a minority source of revenue for Watershed. “Historically Watershed has been dominant in the on-premise space,” says Claire Spurlock, Watershed’s marketing manager. “That just harkens back to our origins [with] Greg and Dave connecting with local business owners and bartenders and people who were receptive to our brand early on. That continued and impacted who we hired and our strategies and almost everyone on the team has some bar or restaurant experience.” Moore says she and the sales staff have embraced the shift to off-premise accounts, whether it’s gaining new accounts or working for better placement on shelves with existing locations. It helps, Moore said in July, that
people are shopping more at liquor stores and she is optimistic that Watershed is laying the groundwork for a strong holiday season. “It’s not like, ‘Okay, it’s October, let’s start making sure our retail customers are in the right spot.’ No, we’ve totally shifted our focus and it seems like we’ve got a better shot of having some good pull through this year.” The distillery shifted away from hand sanitizer production in September, and according to Jennifer Mackle, Watershed’s director of operations, Watershed will have several regular and special releases before year’s end. There’s the annual release of Watershed’s Barrel Finished Nocino, a nutty, sweet liqueur made from unripe Ohio black walnuts, as well as several special bourbon releases to celebrate Watershed’s 10th anniversary. Due to the pandemic, Spurlock says the distillery at first considered a reserved approach to the 10-year milestone. It seems, however, that people may be looking to celebrate. “We’ve come to the conclusion that it’s really okay for us to be proud of 10 years,” says Spurlock, “and to share that story with our community, because it’s our community that’s helped us get to this point.” Those celebrations will mainly take place online and in the form of drive-through events and special releases, similar to the curbside release of Watershed’s Bourbon Barrel Four Peel Gin this summer. While Watershed’s Bourbon Barrel Four Peel Gin is typically aged in used bourbon barrels, the limited batch of the special release was aged in new, freshly charred barrels, allowing more intense flavor and color influence from the barrel. The release was in stark contrast to the distillery’s typical Four Peel Fest, an annual on-site, day-long block party. But there was a bright side to the event. “Cars lined up around the block again—for a spirit,” says Lehman. “That was the first time for a spirit they lined up around the block. That was a good step.” ■
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Shifting Sources Gracefully Making the Leap from Sourcing to Distilling BY MARGARETT WATERBURY
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hoose a distillery business plan at random, and there’s a very good chance it contains a particular inflection point, perhaps somewhere around year three: Release the very first batch of aged spirit—usually whiskey—distilled and matured entirely in-house. When it finally arrives, it’s a triumphant moment. But it’s not a simple moment. With it comes a host of new considerations. How to make sure consumers know this release is special? Can it peacefully coexist alongside products that use sourced spirit? Is it replacing an earlier sourced release—and if so, how much do they really need to taste alike? Navigating these treacherous waters with grace isn’t easy, but it’s definitely possible. And, like all creative endeavors, there’s more than one way to pull it off. Virginia Distillery Co. of Lovingston, Virginia, just celebrated the inaugural release of its Courage & Conviction American Single Malt Whiskey in April. The distillery has been laying down stock for the release for the past five years, carefully following the roadmap laid out by Dr. Jim Swan during the company’s early days. In the meantime, while waiting patiently for its house-distilled whiskey to fully
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Virginia Distillery Co. recently released its first 100% in-house single malt whiskey.
mature, Virginia Distillery Co. created a separate brand called Virginia-Highland Whisky. It blends sourced single malt from Scotland—a style that’s served as a major inspiration for the company—with younger malt whiskey distilled and aged in Virginia. “The imported product was really the way to start our brand, get it out there, and generate revenue while we’re aging whiskey,” said Gareth Moore, CEO at Virginia Distillery Co. Virginia-Highland Whisky definitely helped the company accomplish those goals, garnering significant critical praise and establishing the brand as a leader in the burgeoning American single malt whiskey category. But Moore says those haven’t been the only advantages. “Now, looking backwards, the real benefit has been the internal learnings,” says Moore. “Blending a product is complicated to get right. Over those five years, we really built internal capacity and competency. We spent many years with the whole team figuring out how to select barrels, doing sensory analysis from cask to tabletop, and perfecting blending and proofing down. That was a great thing.” The new Courage & Conviction release looks very different from previous Virginia
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Distillery Co. releases. A redesigned bottle, with vertical font and luxe contemporary appearance, provides a marked contrast with the Old World-inspired branding of Virginia-Highland Whisky. Moore says the distillery always planned to sell the 100% in-house single malt under a different brand name. “We knew from our experience with Dr. Swan that the profile of whiskey made with warm-weather aging can be very, very different from a traditional Highland malt. So we never had any intention to keep the same brand but switch the source. Because it wouldn’t work. It’s just a very different profile,” says Moore. Did Virginia Distillery Co. consider ending its Virginia-Highland Whisky line with the launch of Courage & Conviction? “We talked about it. We considered it. But folks like it. Why would we stop?” says Moore. So, for now, both lines continue—an accessibly priced line that incorporates sourced whisky, and a more premium brand that’s made entirely in-house. Other distilleries have used a similar strategy, like Smooth Ambler and High West Distillery. In Louisville, Kentucky, Copper & Kings American Brandy Co. took a different approach. The distillery phased out sourced spirits completely after five years. Now,
Distillers who remember high-profile class action lawsuits from the mid-2010s over the use of sourcing and terms like “handcrafted” can rest assured that it is indeed very possible to build a following on the basis of sourced spirits, as long as they’re served with a side of honesty. S E P T EM BER 20 20
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“... the reality is, every small distillery is going to need some way of building cash flow while you put spirits down for aging. That’s the fundamental economic lever.” —Joe Heron, founder of Copper & Kings American Brandy Co.
Copper & Kings American Brandy Co. founders Lesley and Joe Heron recently sold the distillery to Constellation Brands.
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Copper & Kings—which was acquired by Constellation Brands in September—only sells brandy distilled in-house, with the exception of a smattering of older acquired casks used occasionally for special releases and one-offs. “There’s this moment of pure optimism and enthusiasm when you get your pot stills delivered. They’re shiny and untarnished, just like the vision of your future when you’re building your dream,” says founder Joe Heron. “But the reality is, every small distillery is going to need some way of building cash flow while you put spirits down for aging. That’s the fundamental economic lever.” Heron started Copper & Kings to make American brandy, which meant clear spirits like gin and vodka were off the table (though it does make a limited amount of the former). Unaged brandy, officially referred to as “immature brandy,” isn’t popular enough to generate much cash flow. “We could tell almost immediately that if we didn’t find any aged brandy, we’d struggle to make an impression on the market, let alone on a P&L,” says Heron. So he got on the phone, calling brandy distillers in California, Oregon, Washington, New York, Ohio, Michigan, Idaho and other states in search of barrels of aged brandy. As barrels arrived, Copper & Kings vatted them together and filled the blend into bourbon barrels to make what it called DNA-1 “We called it that because that DNA was going to run through our brandy for years. It was our thread of consistency, commonality,” says Heron. Copper & Kings used a solera-like system to blend the DNA-1 with its own young housedistilled brandy, adding a bit more of its own spirit to every successive batch. That meant Copper & Kings was able to transition from sourced to own-made brandy gradually, without a potentially jarring switch. “That’s the way we did it to keep it consistent, to keep a profile that’s familiar, but, in our opinion, improving,” says Heron. “Because if you’re not improving it, what’s the point?” Not every distillery needs to obsess about consistency. “When you’re small, I think there’s a little forgiveness,” says Heron. But Copper & Kings’s focus on cocktails and on-premise sales means consistency definitely matters, since bartenders rely on a predictable flavor for their cocktail recipes to work, night after night. In the early days of working mostly with sourced brandy, much of it coming from different states and containing different grape varieties, blending and barreling was the primary way Copper & Kings could create at least a somewhat unified character from one release to the next. “We were aging very con-
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sistently in bourbon barrels with a percentage of new American oak to get a flavor profile that was Copper & Kings,” says Heron. That oaky foundation, plus a full-bodied texture retained by not chill filtering any releases, became Copper & Kings’ hallmarks independent of the grape variety or fruit origin, building another direct sensory bridge from sourced stock to in-house brandy. Heron says it’s hard to imagine starting a distillery focused on brown spirits without sourcing to some degree—unless, of course, you have a lot of cash. “Time is the most valuable commodity there is in aged spirits, and you can’t buy time. So to give yourself some flexibility in the time it takes to bring your own product to market, you have to have a strategy to use sourced spirit to get yourself over the hump,” says Heron. In Shoreham, Vermont, WhistlePig endured five years of a challenging permitting process before officially opening a distillery in 2015. In 2017, it released the first glimpse of the Vermont-grown rye whiskey distilled in the form of FarmStock Rye Crop No. 001, a blend of in-house and sourced whiskey. WhistlePig is now on the third release of FarmStock, which combines 3-year-old rye whiskey distilled and matured at the WhistlePig farm with older sourced rye whiskeys. A recent launch of another whiskey called HomeStock, which was created via a crowdsourced blending event in partnership with online spirits club Flaviar, also included several own-made whiskeys. Master blender Pete Lynch says WhistlePig didn’t originally plan to blend its in-house spirit with sourced spirit. Persistent curiosity from fans, however, led the brand to launch the first FarmStock in 2018, when its own whiskey was just a year old. “It was good for 1-year-old whiskey, but it’s still 1-year-old whiskey,” says Lynch. “But it turned out that we could evoke the flavors in that 1-year-old whiskey at 20% of the blend, and give people that glimpse they were hungry for.” Lynch thinks WhistlePig may still be a few years out from an entirely own-made bottling. “We’re fortunate to not have to worry about keeping the lights on and be able to wait a little longer,” says Lynch. “That’s good for everybody, because it’s going to be a betterquality whiskey.” Despite the growing quantity, quality, and complexity of house-distilled stock, Lynch says WhistlePig has no plans to ever stop sourcing whiskey. “We have this core of sourced whiskeys that have existed since day one, and they’re not going away. I know that people would be really pissed if WhistlePig
10-year-old just disappeared!” says Lynch. “But we are transitioning to significantly more farm-based products as we go on, and you’re going to see the balance shift over the years as many of those products come of age.” That reluctance to ever truly relinquish the freedom that comes from sourcing points to a larger trend in the spirits market: A growing acceptance that in-house distillation is just one way to control the final experience of a product. “There are a lot of ways to evoke different flavor profiles at various stages of the production process,” says Lynch. “There’s blending, there’s finishing, there’s barreling. I hate the bad rap sourcing gets, because it has brought us some amazing spirits.” Distillers who remember high-profile class action lawsuits from the mid-2010s over the use of sourcing and terms like “handcrafted” can rest assured that it is indeed very possible to build a following on the basis of sourced spirits, as long as they’re served with a side of honesty. But it’s not enough to simply not hide the fact that spirits are sourced; its best to be crystal-clear. Virginia Distillery Co. has always been explicit about the makeup of its VirginiaHighland Whisky line, which Moore hopes will prime customers to understand and embrace the launch of Courage & Conviction. “If we hadn’t been very clear about what VirginiaHighland Whisky was, people might have guessed it was single malt, or assumed it was 100% our product. Then, when we came out with our own products, people would say, ‘Jeez, what have I been drinking all these years?! You’ve pulled the wool over our eyes,’” says Moore. “Honesty is the best policy. Because it will always catch up with you.” ■
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Asbury Park Distilling Co. has helped revitalize the downtown area in Asbury Park, New Jersey.
Heading Downtown Distilleries want to be there, and cities want them there—perhaps now more than ever. BY ANDREW KAPLAN
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hen the pandemic hit in March, many towns and cities across the United States found themselves grateful for a decision they had made some time before: to allow a craft distillery to open in their downtown business districts. With hand sanitizer in short supply across the U.S., many of the distilleries shifted their production to create local supplies for residents and first responders. Almost overnight, these distilleries provided a vital service to their communities. Their response to this crisis will likely be looked back on as a highpoint for the young craft spirits industry. The positive press they received was a beacon of light in an otherwise dark time for the country. The truth is, however, that craft distilleries have been playing a more subtle role in helping their communities for quite some time. With more municipalities changing their laws to allow them to open downtown, they have helped these vital business districts—what experts call the heart of
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their communities—to recapture some of the magic they lost to the onset of suburbia and shopping malls. These distilleries bring a certain type of energy to these downtowns and something unique that can’t be found everywhere. As a result, they serve as a draw, bringing consumers into these downtown areas of the city or town. “That was absolutely one of our primary goals and one of the reasons we really sought to be downtown,” says Nels Wroe, founder of Dry Land Distillers, situated in downtown Longmont, Colorado. “We have been community members for 20-plus years, and we have seen the struggles but also the successes of the redevelopment of downtown over the years. And rather than just commenting on it from afar, we felt like we wanted to be a part of that revitalization process.” Adds Kimberlee McKee, executive director of the Longmont Downtown Development Authority: “I think downtowns are always in need of staying current and our downtown certainly did need more active uses, more community-based uses. And so, I think the distillery came at a really important time when we’re seeing our community grow. We’re seeing new people move here. We’re seeing a lot of young families in their 30s, people that really want to go out and have a good time but they’re kind of not into the college bar scene any longer. “On the front range of Colorado, Longmont is a pretty desirable place to live,” she continues, “but part of that is having things that people want to go to and places where they can kind of hang out and feel is home and feel a part of. So, I do think distilleries made a huge difference in that, in kind of elevating the thought of what downtown used to be. Both the distilleries and other craft beverage producers are an anchor, and a very important anchor in our downtown and our community.” “They also bring stories,” says Brit Fontenot, director of economic development for the city of Bozeman in Montana, home to the downtown-situated Bozeman Spirits. “These distilleries, they have a story to tell and that story adds a richness to our overall Bozeman story. What our downtown represents, I think, is a little bit of a snapshot of what Bozeman is as a community. And I think that’s important for a downtown to remain vibrant. I mean, there needs to be a little taste of what your community’s all about. So, I think that variety is what we try to work on.” Up until just recently, however, many municipalities did not want a craft distillery to
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set up shop in their downtowns. In fact, there were laws on the books to prevent it. Changing Perceptions Many cities and towns used to ban any type of manufacturing in their downtowns for a variety of reasons. “As downtowns evolved from serving more practical needs—saddle makers, mercantiles, brick yards, tanneries, etc.—to
more small-scale goods and retail, the heavier manufacturing moved out to the fringes (also once transportation became more efficient),” explains Fontenot. “We call the industrial type zoning more suited to other parts of town the ‘smells and bells’ type of uses … less compatible with neighbors. “It’s the craft or artisanal nature of the manufacturing that makes it attractive to
Bozeman Spirits co-founders Mary Pat and Jim Harris
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downtowns,” he continues. “People like to see where their beer, spirits, coffee, meat, vegetables, etc. come from and if you promote local or farm-to-table, then seeing it processed is part of the experience. It’s all about the scale. Human scale: put it downtown and add to the experience. Industrial scale: put it on the outskirts. We are trying to achieve balance between the old craftsmanship and the 21st century.” As a result, existing zoning laws needed to be changed to allow for the type of light manufacturing of a craft distillery. In fact, in some cases it was the craft distillers themselves who led the charge to change those laws. “We really pressed the city and the zoning team to change the zoning rules to allow small manufacturing like a craft distillery to set up shop in the central downtown district,” says Wroe. “Kimberlee was really behind this whole idea of craft manufacturing, realizing that a city like Longmont with its roots in agriculture and its roots in industry, you can’t just abandon that as part of your central focus of downtown.” Longmont’s downtown now includes two craft distilleries, five breweries and a cidery. Such businesses inject an element of positivity into their downtown business communities: local or nearby residents producing local products and inviting their neighbors and visitors to share in the experience through tours and by stopping by to sample their latest creations. “We’re happy that the city has really embraced, after some tough starts, but they’ve really embraced now craft manufacturing as part of the downtown business district,” says Wroe. After starting in a pilot space downtown, Dry Land is moving into a larger
building half a block away. Over on the East Coast, Asbury Park, New Jersey is one city that has had its shares of up and downs over the years. In fact, this past July the city marked the 50th anniversary of racial riots that scarred its downtown to such a degree that many businesses abandoned the city and it took decades to recover. But this coastal city, made famous by the likes of Bruce Springsteen, has today staged a comeback with a culinary scene, among other draws, that has made it a vibrant destination for locals and visitors alike. Helping to cement this revitalization has been the downtown-located Asbury Park Distilling Co., which regularly partners with local restaurants. “Asbury Park is full of creative and unique businesses, including art galleries, cafes, glass blowing studios, as well as many distinctive restaurants,” says Andrew Karas, one of the founders and coowners. “Asbury Park Distilling certainly adds to the culture that has been created in the downtown and helped revitalize the block on which it is located.” Karas says it took about three years to get the zoning requirements changed to allow a craft distillery to operate in downtown Asbury Park, to obtain the necessary federal and state licensing, to purchase all the equipment, and to build out the space. He adds that the distillery’s design took advantage of the downtown location. “Since the distillery is located on a very visible corner in the downtown, we added large windows that allow pedestrians walking by to observe our manufacturing area,” he says. “Further, the tasting room was designed as a creative, upscale space that is consistent with the culinary experience Asbury Park is known for. We also have numerous vintage aerial photos
of Asbury Park on display in the distillery to give homage to the history of Asbury Park.” Adds Rob Wile, the distillery’s co-owner, “Asbury Park is an incredibly cooperative city and we love being part of that type of community. We have vast relationships with the many restaurants and bars in the area. And we also have tried our best to be a great partner to many local charities and organizations that are working to make Asbury and the surrounding areas a better place to live, work and visit.” Asbury Park’s deputy mayor Amy Quinn says that the distillery came into town a few years after the city was already undergoing a revitalization. But the distillery has played a major role in keeping that revitalization going. “What I like about a distillery,” she says, “is that you kind of have to do the tour, you go in and you order. Listen, Asbury Park has a number of bars and restaurants and some of them can overserve and be problems for our police department and City Council for that matter. As long as I’ve been on the Council, I don’t remember hearing a complaint about overserving or anything as a result of the distillery. That makes our life so much easier.” Downtown’s Benefits It is the foot traffic Karas refers to that makes being downtown so desirable for these craft distilleries. “It’s critical that we’re downtown,” says Wroe. “We believe very strongly that, even pre-COVID, we would not have been nearly as successful being in an off-downtown location. Instead of having to draw people to an industrial area in Longmont, it’s so much easier to be part of the downtown community where we can partner with restaurants on the street. We’re basically part of this creative
Dry Land Distillers worked with the city of Longmont to change zoning rules to allow a small distillery to operate downtown.
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arts district now downtown which is normally drawing people into our downtown business district. We all benefit from that draw.” Wroe estimates his downtown location draws 40 to 60% more traffic organically than those distilleries located outside of downtown. Bozeman Spirits also benefits from the foot traffic in downtown Bozeman, a city which draws many tourists from nearby Yellowstone National Park. “My wife and I just had a goal to put something in downtown Bozeman and be a part of the community and turn into a destination that when people come to town it’s like, ‘Hey, there’s these places you have to go to,’ and we wanted to be one of those places,” says Jim Harris, founder. By being situated in downtown Bozeman, he gets a flow of visitors who stop in to see the operation and sample a few of his products. “I think the tasting room is a powerful marketing machine,” Harris says. “It’s your showroom. You can tell your story, people see it, they can touch it and come feel it. I think it instantly gives some validity to your actual brand.” Since Bozeman Spirits opened, the business district downtown has continued to revitalize. “The whole block was somewhat dilapidated,” he says. “We had an old hotel across the street from us that was closed down and was basically getting partially torn down. And that has since been redone to kind of a boutique hotel. So, both sides of the block basically got revitalized. We were kind of the kickoff to that. It made this block a much better retail area to come.” As an example of the collaborative possibilities that come from being downtown, Bozeman Spirits set up a patio beside the distillery that a neighboring restaurant ended up joining. “So, it made kind of a nice outside sitting area that a lot of people come down to now,” Harris says. Bozeman Spirits is also an example of how a craft distillery can fit into the overall tableau of downtown life. Montana law says a craft distillery can only serve daily two-ounce samples per person. So, Harris likes to tell his customers they can sample creations like his Huckleberry Vodka at the distillery and then go enjoy a full cocktail with it at one of the nearby restaurants. “So, it’s kind of like ‘Come start your evening with us,’” he says. Challenged by COVID So, the history of downtowns has certainly been one of ups and downs. But many had been on quite a roll until this year when they were rocked by the pandemic and then in
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Longmont’s downtown includes two craft distilleries, five breweries and a cidery.
quick succession by the protests. Distilleries across the country were forced to shut down their tasting rooms and then limit consumption to outdoor spaces once they reopened. As a result of all this, many of the advantages these craft distillers saw from being downtown have either been challenged or even disappeared overnight. However, some distillers still see the benefits of being downtown even during the pandemic. The city of Longmont, for instance, recently undertook an alley revitalization project downtown, brick paving them and turning them into inviting corridors for walking and biking. “We pitched the city as a group of restaurants, brewers and distillers the idea that we should shut down the alleys in downtown Longmont and we should allow sidewalk access for seating,” says Wroe. “So now businesses, restaurants, breweries and distilleries can expand into the alleyways on the weekends and use that for patio seating. And it’s worked out really, really well. The downtown business district I think is quite resilient because of the amount of flexibility the city has provided during COVID. It’s made
it possible for us to hold our own.” He adds, “The city realizes that craft industries are quite a growing industry and they want to make sure that those industries survive. And so, they’ve been very quick at making these rule changes to allow us to be creative during COVID, to allow us to keep the lights on at least.” Craft distillers have always been faced with challenges, and COVID is but the latest, perhaps the biggest one. But for those distilleries lucky enough to be downtown, that has made surviving the latest crisis maybe that much easier. As for the downtowns themselves, the pandemic is but the latest challenge that these hearts of their communities have had to endure. And craft distillers will be working their hardest to help. “I think if you look at downtowns, they kind of ebb and flow,” says McKee. “At one time, everybody was downtown. That was the only option you had. And then in the 80s shopping malls came and people deserted. And so, it’s been come and go. But I feel that downtowns will endure. They are constantly reinventing themselves.” ■
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Distilling Destinations
Distilling in the Hoosier Heartland Craft spirits producers in Indiana relish relationships with local farmers. BY JOHN HOLL
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Starlight Distillery
here is one particular state in this country that is revered for its whiskey above all others. Part talent, part myth, some marketing, an assist from longevity, and a whole lot of familiar names have helped Kentucky become a dominant and beloved force in the world of spirits. If you would consult your map, and gaze north, the craft distilleries of Indiana would like a moment of your time to make the case for the Hoosier State. “We’ve got great corn and hard limestone water here plus great fluctuation in temperature, so we can make some of the best whiskey in the world,” says Blake Jones, the co-founder of West Fork Whiskey Co. in Indianapolis. “In general, I always remind people that it wasn’t always about Kentucky whiskey. Pennsylvania, Illinois and Indiana were big distilling states back in the days before Prohibition. We’re working to bring it back.” State laws changed in 2013 to allow for craft distilleries to operate and since then there has been a steady growth in numbers as operations have popped up in the cities, near Lake Michigan to the north, the Ohio River to the south and in the vast farmland in between. Like with other states, there is diversity in the spirits programs with some focusing on whiskey, and others promoting gin, flavored vodka, rum and liqueur. It is the farms in the state with which many
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“There are really some phenomenal things going on here and we’re just getting started.” —Dana Huber of Starlight Distillery distilleries are proud of and excited to work. “I think that in the past most people didn’t know what was going into their bottles,” says Marla Schneider, president of Three Rivers Distilling Co. in Fort Wayne. “For us the relationship with the farms and sourcing local ingredients is so very important and we can point to just what is in our bottles and that is a source of pride.” The personal relationships with grain farmers have helped contribute to a stronger industry in the state, she says. “We will tour the farm and they will tour the distillery and we can talk about any issues, or what we want to develop, and they talk with us. Having [farmers] in our backyard is so beneficial and there is a symbiotic relationship.” At 18th Street Distillery in Hammond, all of the spirits contain 100% Indiana grain, and head distiller Raven Colon says that much of it comes from within 50 miles of the distillery. That proximity means that she is able to closely work with the growers for not only quality ingredients, but can also work on innovation.
Recently, she used wind-processed malt from Sugar Creek Malt in Lebanon, Indiana. “We get to use superior ingredients with old world techniques, that makes it pretty special,” she says. “That’s how we grow and stay relevant as a distillery, we need to keep pushing boundaries, look for new ingredients and flavors.” There are around 35 craft distilleries in the state these days, and each is trying to honor tradition and put down local community roots for the long term. Some, like Three Floyds Distilling Co., are offshoots of popular breweries. Jones, of West Fork Whiskey, revived the Old Hamer Straight Bourbon brand and then partnered with Upland Brewing Co. in Bloomington, which brought back the Champagne Velvet pilsner, another Hoosier heritage brand. Combined as a beer and a shot, they call the pairing a Hoosier High Five. “It’s a reminder of where we are in the state but also having fun,” he says. Another common thread, says Dana Huber of Starlight Distillery in Borden, Indiana, is
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West Fork Whiskey Co.
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the Hoosier Hospitality mentality that is part of the state’s fabric. Small businesses are grateful for customers, want everyone to leave happy, and residents in the state are eager to lend a helping hand. She is currently working for a state development group to help promote tourism and all things Indiana. Her distillery, part of a sevengeneration, 800-acre farm that also includes a winery, has pivoted to agritourism over the last decades, bringing new life to the business and giving them a chance to connect with consumers like never before. Visitors even have the chance to see corn and rye up close, as the farm uses its annual harvest in the creation of its whiskey. Talk with a small distillery owner in the state and it does not take long for the topic of sourced spirits to come up in conversation, as Indiana is home to several companies that make base spirits. In Marion, CIE produces grain neutral spirits for beverage and industrial graded alcohols. And in Lawrenceburg, MGP makes the base bourbon and rye for popular brands, including Bulliet, High West, George Dickle, and so many others. As a result, many owners say that savvy customers will make it a point to ask if the whiskey on the distillery shelves is their own, or a branded label coming out of a warehouse. “One thing that has helped is [Indiana’s] craft beer scene and that we have some great wines here too,” says Jeff Wuslich of Cardinal Spirits in Bloomington. “Customers are used to drinking local products and building relationships with brands. It can take some time to acquire a taste for craft spirits but even our proximity to Kentucky helps people support what we are doing locally.” To deepen the relationship with the state, Cardinal has created spirits for wellknown brands and institutions, including St. Elmo Steakhouse in Indianapolis. These partnerships help push the narrative of Hoosier distilling. “If you like well executed craft spirits that showcase local agriculture, you’re going to want to drink in Indiana,” he says. Some will consider Indiana part of flyover country, but the Midwestern state, connected by so many major roadways, is clearly a distilling destination to check out. “Indiana is going to be a state that you want to watch,” says Huber. “We have some young distillers working on programs, they are educated and have brilliant ideas that will put Indiana on the map. There are really some phenomenal things going on here and we’re just getting started.” ■
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“If you like well executed craft spirits that showcase local agriculture, you’re going to want to drink in Indiana.” —Jeff Wuslich of Cardinal Spirits
Cardinal Spirits
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legal corner
CONSULTANT CONSIDERATIONS Legal Issues When Working with Beverage Alcohol Consultants BY MARSHALL FAWLEY
We all know the story. Someone has an idea for a spirit-based RTD product that they believe consumers are clamoring for, even if the consumers don’t know it yet. They want to get into production as soon as possible and reach as many drinkers as they can. They want to work with a distillery that can make the product. But how do they find the right distillery? Where do they start? To connect brand owners and distilleries, beverage alcohol consultants (BACs) may be the missing piece. BACs have the contacts and expertise to get that product to market. BACs may have a pre-existing relationship with a distiller, a distributor, or any number of third parties that can help formulate, advertise, and sell the brand owner’s idea. They take a lot of legwork away from brand owners, distilleries and others. Simply put, there is no denying that good BACs can be a big help to brand owners and distilleries looking to fill excess capacity. However, when an offer looks too good to be true, it often is. After reviewing a number of contracts involving BACs, I believe the observations and thoughts below will be useful for both brand owners seeking to get into the industry and distillers alike. The issues presented below are not a comprehensive list and tend to be worst-case scenario items. Any particular BAC may not employ any of these terms. Nevertheless, these are important considerations when working with a BAC or any third party.
team. Its job is to sign up brand owners and help connect them to production partners and other parties to get the products to market. Just like any industry, there are good and bad sales people working for BACs. The bad sales people attempt high pressure tactics to get the contract signed without sufficient review or understanding of its terms. Statements such as “If you wait another week to sign the contract, it will delay production for 6 months,” are designed to prey on the brand owners’ need for speed. Sometimes a brand owner or distillery is looking for very specific consulting help. A brand owner may just want help gathering a list of potential contract distilling partners. A distillery may just want help identifying serious brand owners, rather than fly-by-nighthad-an-idea-after-one-too-many-tequila-shots brand owner. A bad BAC salesperson will say the contract covers exactly what they want … without disclosing that it locks the brand owner or distillery into much more. Some BAC salespersons will promise “we can alter the contract to say that” or worse “even though the contract covers that” or “we do that as a matter of course.” They won’t tell you that they don’t have the authority to change the contract terms and the person who does may not honor the salesperson’s promise. Furthermore, if it isn’t in the contract, no one is obligated to do it. Spend the time to read and understand the contract and get everything in writing.
Slow Your Roll Everyone is in a hurry. Brand owners are in a hurry to get their products to market. Distillers want to maximize capacity. Often BACs offer ready-to-go contracts that purport to get you there fast. My recommendation is always to slow down, read the contract, and be sure you have a solid understanding of its implications before signing. The client services side of a BAC is essentially like its sales
Whose Product Is It? When BACs are brought into the picture, brand owners and distilleries need to be careful with how they share intellectual property (IP) such as formulas, trademarks, trade secrets, processes, etc. A BAC contract may specify that the brand owner or distillery grants the BAC all rights to the IP in connection with producing and selling the products. The BAC in turn may transfer or assign these
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rights to third parties with whom the BAC subcontracts. A brand owner or distillery must be diligent in protecting its IP and ensure that no one can transfer or assign that IP without express permission. As the potential chain of companies and individuals who have access to the IP grows, who can and can’t transfer or assign IP rights gets cloudy. The chances of deliberate or inadvertent disclosure of IP rises. It is easy to imagine how trade secrets can get out. A marketing company employee subcontracted by the BAC may inadvertently share the IP with another client of the marketing company. That IP is now in the hands of a company that may be a direct competitor with the brand owner or distillery. Who is covered and protected from liability? Some BAC contracts force the brand owner or distillery to carry insurance that not only covers the BAC but also covers any third party, known or unknown, with whom the BAC subcontracts. Some contracts also specify that the brand owner or distillery’s insurance be the primary policy against any claims related to their products. This means that if at any point an insurance claim has to be filed in relation to the product, it’s the brand owner’s or distillery’s policy which must cover the claim. In other words, if there is a claim against the product because of something a BAC subcontractor did or failed to do, the brand owner or distillery’s insurance is the first in line for coverage. There may or may not be provisions for secondary or contributory policies, but if not, the primary policy is on the hook for this insurance coverage. Speaking of claims, I have seen some BAC contracts that are written so the brand owner or distillery fully indemnifies the BAC and any BAC subcontractor. In the most egregious examples, the indemnification provisions cover
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Simply put, there is no denying that good BACs can be a big help to brand owners and distilleries looking to fill excess capacity.
any act or omission regardless of fault. If the BAC hires a sales team who ends up selling to underage drinkers, conceivably the sales team is indemnified by the BAC or distillery who must bear all costs of the claim and shield the sales team from liability. An Unwanted Marriage The choice of a wholesale distributor is a major decision for any alcohol beverage supplier. In choosing a distributor, considerations may include the distributor’s specific footprint, the range of products in their portfolio, and the ability to market and sell a specific product with sufficient ability to be successful. Some BAC contracts specify that the BAC selects the distributor, or if not outright selection, the BAC may strongly recommend a distributor. In some cases, the BAC and distributor may have a business relationship to support and recommend each other. Allowing the BAC to choose, expressly or
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not, a specific distributor can open the door to a myriad of problems. Does the distillery have a preexisting relationship with another distributor for a specific geographic area? Are there any exclusivity agreements between a distillery and a distributor? Do the brand owner’s products made by the distillery count as the distillery’s products under state franchise laws? Do state franchise laws lock the distillery or brand owner in a relationship with an ineffectual distributor? If the relationship between the BAC and the brand owner or distillery goes south, can the distributor selected by the BAC be terminated? These are all questions that must be answered so a BAC contract doesn’t lock a brand owner or distillery into a bad marriage. As mentioned at the outset, not all BACs employ the contract provisions above or try high-pressure tactics to get a contract signed. The examples above are meant to underscore the importance of ensuring that when work-
ing with a BAC, or any third party, you fully understand the nature of the relationship and terms of the agreement. Spending time at the outset to do so will keep you from unexpected headaches in the future. ■
Marshall Fawley is an attorney at Lehrman Beverage Law. He routinely counsels clients on a wide range of issues within the alcohol beverage industry including contracts, Federal and State tied-house laws, advertising claims, brand acquisition due diligence, TTB Voluntary Disclosures, and analysis of state franchise laws.
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packaging
TEN TIPS FOR PACKAGING DURING THE PANDEMIC Experts offer insights on how to get the most from your packaging during this challenging time. BY ANDREW KAPLAN
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The look of Copperwing Distillery’s cocktail kits plays off the distillery’s existing label design. SEP TEM BER 2020
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Kyle Kettering, owner and master distiller at Copperwing Distillery in St. Louis Park, Minnesota, had always wanted to offer his customers take-home cocktail kits but he never got around to it. “We never had the time to execute it, running a full-time cocktail room and a full-time distillery. We just didn’t have the staff to handle it,” he says. But when the coronavirus pandemic hit, everything changed. Tasting rooms across the country were forced to temporarily shut down and distilleries shifted their attention to off-premise consumption. For Kettering, that meant the time was right to finally focus on a new line of cocktail kits along with readyto-drink cocktails that they call Copperwing House Calls. The same goes for nearby Norseman Distillery, in Minneapolis. “It’s always been something we considered, and this sort of forced us to make that move quicker,” says Scott Ervin, Norseman’s owner and master distiller, about the company’s recently launched Staycation Cocktail Kits. The kits—which feature a rotating selection of mixers in slim cans with a 375-mL bottle of spirits—have proven extremely popular with customers. With time being of the essence because of the business disruption caused by the pandemic, both distilleries did not reinvent the wheel when coming up with packaging designs for the new product lines. For example, the initial design for Copperwing House Calls, plays off the existing label design Copperwing already had been using for its other packaged products. For its canned mixers, Norseman used what it already had. “It’s really just what we have available,” says Ervin. “We have tons of stickers with the ‘N’ on them and they fit pretty well on the cans.” Both are examples of how necessity is forcing craft distillers to quickly adapt to the new environment created by the pandemic, drawing on their resourcefulness to appeal to consumers looking for convenient drinking options. While the packaging of many of these new products is continuing to evolve, there are some tips that can be drawn from their experiences, and from that of packaging design experts who have been observing the situation as the pandemic continues to impact the craft distilling industry.
“But, at this point, for us to invest in either larger or faster equipment, it’s just everything is sort of like strapped at the moment.” To keep things fresh and consumers coming back, Norseman tries to craft four new cans of mixers each week. “Which has been exhausting for us, but also keeps people really interested. And it has now become sort of a thing,” he says. To purchase Norseman’s cocktail kit, consumers visit the distillery’s website each week where the latest offerings of canned mixers are listed. They then use a dropdown menu to select which 375-mL offering of Norseman spirit they want to go along with that week’s mixers. They then pick up their kit at the distillery. Altogether it is enough to make eight cocktails at home. The new product line has actually proven successful beyond what Ervin imagined, earning the distillery repeat customers, some of whom line up early. “It’s been a superpopular thing for us,” Ervin says. “So much so I think we’d do it for sure after [the pandemic] is all over.” The whole project has so far favored function over form, as Norseman’s team has slapped the extra ‘N’ stickers they had lying around on cans. “We actually just sent off some other labels to get printed a little fancier,” Ervin says. “[These stickers] were kind of like a logo, like a monogram that we put on a lot of stuff.” The design for Copperwing House Calls, meanwhile, plays off the existing label design Copperwing was using for its other spirits. “Something where any customer who is familiar with our brand Copperwing would easily be able to recognize it on this cocktail,”
Kettering says. “It has similar branding language and visual elements that our spirits bottles have.” For its new cocktail kits, Copperwing didn’t do anything fancy. “More or less just brown-bagging it,” Kettering says. “You get your bottle of spirit which is its own package all by itself and then we’re putting together syrups and the juices all in one single juice bottle with a house-made printed recipe card with a picture on it of the final product. And then usually fresh fruit and garnish in there as well and a bag of ice. It’s pretty much just a grab-all satchel. Nothing pretty on its own, just the end-result is tasty when you bring it home and mix it up.” 2: Experiment with Secondary Packaging While these challenging times may necessitate the function over form approach in tip No. 1, every point of contact with a customer is important and holds in it the opportunity to create a customer for life. So, it may be worth the extra effort or investment to add a few memorable touches to the secondary package housing those popular cocktail kits, say some packaging design experts. For example, David Schuemann, owner and creative principal of CF Napa Brand Design in Napa, California, recommends emulating the wine industry when it comes to cocktail kit packaging. “For their highest-end products they’re putting them in specialty gift boxes, something that’s very giftable,” he says. “Or they’re wrapped like a present almost, with a handwritten note that thanks the customer and gives them insights into the product in some way.” One idea is including a unique trinket from
An engaging closure is a tried and true way to make a bottle standout.
1: Function Over Form To produce its cocktail kits each week, Norseman’s staff sweats away at a canning line that packages about six cans of the mixers a minute. “It’s a pretty slow process,” Ervin says.
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the distillery along with a specially designed note. “I’ve seen examples where people fold the notes into origami, or it’s just a very nice casual card that says, ‘Thanks for supporting us, we really appreciate it through these times, here’s something special.’” Including a small sampler bottle of another product if local laws allow it can be another nice touch. “This may be an opportunity to tease the customer into other products,” Schuemann says. 3: A Label is More Than Just a Logo For craft distillers more used to catering to guests in their tasting rooms, it’s important to keep in mind the mission of a packaging label, says Jack Peterson, president of Sandstrom Partners in Portland, Oregon. With more craft distillers today vying for space on retail shelves a label has to do more than just recreate the logo on your distillery’s façade. “You can’t just think about the construct in terms of, ‘I’ll just put my logo on the package and be done with it, and people will buy it because they recognize me,’” Peterson says. “It’s much bigger than that. We now have to consider ourselves competing on the shelf against other brands.” Peterson says a good label will convey three things about the distillery: 1) The distillery’s authentic story; 2) Something that makes it distinctive from the competition; and 3) Something that lends it credibility. “People will say, ‘All we want to do is disrupt, get noticed on the shelf,’” Peterson says. “But if that’s all you’re doing, you don’t have any credibility or authenticity. You get noticed but people are like, ‘Yeah, I’m not drinking that.’ … If you can figure out a way to tell a story that is interesting and distinctive and motivating, well then you will be successful.” 4: Container Size Matters With many consumers looking to make as few trips to the store, or your distillery, these days as possible, it’s a time when the size of the package has become more important than ever, as well as the value it provides. “Craft distillers have to find a way to stand out in a world where there’s a bias toward brands that are a little more value-oriented,” says Peterson. “At a certain point, in a situation like this, you go with who you know, and you go with value.” Adds Christian Helms, founder and creative director of the Austin, Texas-based Helms Workshop, “Especially in times of crisis, people seek their creature comforts. So, I think the need to reassure folks and help them
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make their [purchasing] decision based on value and differentiation is important and that can definitely be done through packaging.” 5: Sustainability Remains Important The world may be struggling with one major crisis, but consumers are still just as concerned about climate change and sustainability. So, choosing sustainable materials remains an important goal for a distillery’s packaging. “From biodegradable packaging to minimal package, there are a lot of trends in the overall packaging world toward ‘Less is more,’” says Helms. “Less ornate, less extra bells and whistles, more minimal and more sustainable. ... I would imagine spirits will resist that trend in the beginning, but I think it’s going to become a bigger and bigger conversation in packaging and eventually spirits will have to address it.” 6: Material Shortages Will Likely Continue Can shortages have continued throughout the pandemic, with causes ranging from a crimp in the capacity of can companies to produce more to meet demand, to panic hoarding by some businesses. Craft distillers report they have already been impacted by such shortages. Experts say expect such shortages to continue every so often as long as instability remains in supply chains due to the pandemic. 7: Keep it Simple A package label can really get your brand noticed, as outlined in tip No. 3, but that doesn’t mean it should end up looking cluttered and chaotic. In fact, quite the opposite. More than one of these packaging design experts suggests now may be a good time to go with a simpler label design in order to distinguish a product on a busy shelf. For example, Rogue Ale & Spirits of Newport, Oregon, recently chose a simpler design for its new line of canned cocktails. “I wanted it to stand out, so I really wanted to use color to draw you in,” says Hagen Moore, vice president of creative and marketing for Rogue. “I wanted it to have a simple elegance. I didn’t want it to have a lot of crazy graphics on it and a bunch of crazy colors. So, I felt like the shades of the color family kept it somewhat sophisticated and elegant, as opposed to a bunch of loud colors splashed on the can.” 8: Top Things Off Creatively It may seem obvious, but an engaging closure is a tried-and-true way to make a bottle of
spirits stand out on a store shelf or at a bar. “Think about the closure as an essential tool to transmit your message to the consumer,” says Heinz Heidenreich, owner of NimbleJack Partners in Cumming, Georgia. Heidenreich says there is a trend in the industry toward more customized closures. “Both of our factories in Mexico and Italy have really invested in new decoration machinery,” he says. 9: Custom Bottles Help to Stand Out During a time when more craft spirits brands may be vying for attention in a store, a custom bottle can really help a product stand out from the crowd. “There are a select few stock
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Rogue Ales & Spirits aimed to keep things simple when designing packaging for canned cocktails.
bottles it seems like everybody made the decision to go for at the same time. So now, all of a sudden, you go to the shelf and it’s like, ‘Wow, it’s attack of the clones!’” says Helms. “Custom packaging architecture really allows you to ensure that you’re going to be unique on the shelf no matter what.” 10: Tread Carefully with Hand Sanitizer The fast production of hand sanitizer during the early days of the pandemic when supplies were low earned craft distilleries kudos across the country. But some packaging experts say to keep things in perspective. As larger manufacturers fill demand, there will be less need for sanitizer. So, it probably makes sense to not to
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blur your brand too much with whichever label used for hand sanitizer product. Remember to maintain some distance between the spirits brand design you’re known for and these other temporary products. Also, as Schuemann points out: “It’s important to make sure that it’s clearly hand sanitizer. That it’s not using your entire package design, just maybe your logo, and that it doesn’t look like it’s something potable. That’s just something we’ve been trying to advise people on.” Packaging as a Powerful Tool Of course, each case is different. A distillery in one part of the country will likely face chal-
lenges during the remaining months of the pandemic not faced by a distillery somewhere else. But they all have one thing in common: the ongoing disruption to normal business and the uncertainty that the pandemic has brought with it. As John Berry (JB), CEO of packaging supplier Saxco explains: “I just believe that we are at a point that we’re going to have to continue to face into the reality that we don’t really know when tasting rooms are going to be fully open again. And so, it’s probably imperative that the craft distillers continue to innovate and find ways to get the product to market. Packaging will be a key component of that.” ■
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Technically Speaking
DISTILLING FOR THE FUTURE Through sustainability efforts, craft distilleries strive to protect the environment and their communities. BY JON PAGE
When the staff at Montanya Distillers started making to-go cocktail kits at the start of the pandemic, founder Karen Hoskin immediately noticed a big problem: plastic. The distillery in Crested Butte, Colorado, takes pride in its many sustainability efforts, including not using “single-use anything unless it’s 100% recycled,” says Hoskin. So at the first sight of cocktail garnishes and ingredients in plastic containers, she instructed staff to use twisted packets of aluminum foil or Mason jars, instead. The message about sustainability was clear: “There are no compromises, even in the middle of a pandemic,” Hoskin says. Montanya is one of many American craft distilleries placing a strong emphasis on sustainability. Whether it’s through adaptive reuse of space, recycling energy and resources, or laying the groundwork for an environmentally-friendly business designed to last for generations, there are seemingly
“To be a sustainability company, it infiltrates every single aspect of business.” —Karen Hoskin of Montanya Distillers endless ways that craft spirits producers can foster sustainability in their businesses. At Montanya, Hoskin sees sustainability as an all-encompassing mission, and there is proof all around. The distillery, barrel room, warehouse and tasting room are 100% wind powered. The distillery offsets carbon output from natural gas fired stills, airline travel, freight shipping, Amazon shipments and more. The distillery and tasting room are heated by recycled heat produced from the stills. The company is closing in on becoming a zero-waste facility, and employees travel with reusable glass kits to avoid using plastic
products at tastings. And those are just a few of the distillery’s sustainability efforts. “To be a sustainability company, it infiltrates every single aspect of business,” says Hoskin. Partially because of those efforts, Montanya is on a short list of distilleries that have earned status as a Certified B Corporation, which is a business that meets the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose. Other distilleries that are Certified B Corporations include Headframe Spirits of Butte, Montana, and Fair
John and Courtney McKee of Headframe Spirits
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Bently Heritage Estate Distillery redesigned a mill (pictured) and creamery on the National Register of Historic Places.
Game Beverage of Pittsboro, North Carolina. “That B Corp designation really is sort of a badge of honor [and] recognition for effort and work around sustainability,” says Headframe CEO Courtney McKee. “The notion of being a B Corp, it means that your business is designated as a benefit corporation and that means that the entity is documented to be here and be serving a greater purpose than simply a financial return to the shareholders.” For Headframe, much of that purpose centers around community. And it all starts with the distillery’s location, a 100-yearold building that originally housed a Buick dealership. McKee is proud that rather than tearing down an existing space, Headframe breathed new life into a building that was mostly suited to house a distillery. Since it has no basement, the floor could already support the heavy load of a mash tun, forklifts, and more. When it came to upgrades to bring the space up to code by today’s standards, the distillery was able to offset 25% of the improvement thanks to grants. “When done well, efforts of sustainability can be great from a marketing and storytelling standpoint but also really valuable from an expense standpoint, too,” says McKee. “When you look at the difference between trying to occupy a new space or to build out a new space, you can sometimes do a lot more by utilizing existing spaces.” The team at Bently Heritage Estate Distillery in Minden, Nevada, also knows plenty about adaptive reuse. The distillery renovated two century-old buildings, a mill and a creamery on the National Register of Historic Places. The process involved some rebuilding, but original materials were carefully removed and later replaced. Bricks were removed, cleaned and brought back during the rebuilding process. They
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even removed and repurposed the roof, piece by piece. Both buildings are LEED (Leadership in Energy and Environmental Design) Gold certified. In addition to the reuse of buildings, the distillery reuses water and recovers heat throughout the distillation process. And head distiller Johnny Jeffery is especially proud of the estate’s sustainability efforts on its ranch. All of the distillery’s spent grain and processed water are sent to compost on the land where the distillery grows its grain. “The traditional way that spent grain is treated is as feed for animals, which I don’t love because ruminants like cows aren’t supposed to be eating grain,” says Jeffery. “When you take grain and make it cattle feed you’re participating in that weird abuse of industrial animal farming. Whereas if you take that spent grain and your processed water and you put it on the land and compost it, and then spread it on the fields that are growing your grain, you’re replacing and regenerating nutrients that you’ve extracted to grow the grain to make your product. … You’re taking the material that the earth has given you and you’re putting it back on the earth.” Jeffery is aware that Bently Heritage is an atypical craft distillery, and that it may be cost prohibitive for many startup distilleries to initially implement similar sustainability practices. He suggests making a list of 100 aspirational goals, with the hope that in 15 years you can check off the bulk of those practices. “We’re trying to imagine that our businesses will live generations, right? I would hope that we’re passing them off,” Jeffery says. “And if we have righteous goals that we’re always working towards, I think we’re doing our job.” Some items on that checklist may be easy to attain. Connie Baker of Marble Distillery in Durango, Colorado, says it could be as
The compost yard at Bently Heritage
Bently Heritage owners Christopher and Camille Bently
simple as sharing trucks with other distilleries nearby. “If we know that we need four pallets next month of glass, I reach out to my sales rep and I say, ‘Who else in Colorado is getting glass so we can at least all share a truck?’ We do the same thing with our barrels.” And at Hill Country Distillers in Comfort, Texas, Cayce Kovacs says the distillery has discovered a creative way to reuse its mash made from jalapeno peppers. The distillery gives it away to local hog trappers. “The leftover mash after the peppers have fermented is apparently great bait for putting in hog traps,” says Kovacs. ‘We call it hog crack.” ■
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Human resources
GET THE BALANCE RIGHT Wage equity should be part of your business strategy from the get-go. BY KATE BERNOT
A distillery that only employs a dozen people might not feel that it needs to spend time thinking about pay equity. But human resources experts say that when a business is small, that’s exactly the time to begin setting standards and policies around equitable pay. “Develop a compensation system now. Scale that as you grow,” says Thomas Carnahan, manager of pay equity services at Berkshire Associates, a human resources and technology firm. “Pay equity is one of those things that when you’re paying attention to it from the beginning, you save yourself a lot of time and money later.” Pay equity is not only mandated by federal and state laws, but it’s smart business. Ensuring that compensation is equitable across genders, races, sexual orientations and other classes is as much a hiring and retention prerogative as it is a legal one. “There is discrimination in pay. The data proves it,” says Laurie Grenya, co-president of HR Answers, Inc., a human resources consulting and staffing firm. “That’s why everybody needs to have their foot forward
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on this one to say: No, this stops here.” So, where should a small distillery begin? 1. Know what you want compensation to do for your business. Experts say the answers should guide the pay and benefits you offer employees. Do you want it to promote employees’ work/life balance? Incentivize them to advance in their careers? Take on new job responsibilities? 2. How will you achieve that through the “life cycle” of an employee? The “life cycle” refers to the full term of their employment with your business, from recruitment to resignation, termination or retirement. Make sure your business has clear standards and procedures for compensation around promotions, demotions and changes of job title. 3. Put your compensation plan and guidelines into writing. Having a compensation plan that’s codified makes management less likely to fail in specific negotiations with prospective
or current employees. “I don’t believe most organizations have enough time to sit around to think about how to discriminate against people. They do it by not having enough time and just trying to solve for X very quickly,” Grenya says. “If you don’t have good guidelines backing you, you’re more likely to make an unintentional mistake that you’ll pay for later.” At Montanya Distillers in Crested Butte, Colorado, every employee’s job has a written flow chart of duties and expectations. Founder and owner Karen Hoskin explains that this documentation helps structure performance reviews and makes it easy to see when an employee isn’t fulfilling their job duties—or is going above and beyond and might be owed a promotion or raise. 4. Don’t let it get personal. Compensation is about the job duties performed, not who is performing them. Make sure decisions about compensation are, to a reasonable degree, centralized and not left to individual managers who don’t have clear guidance. A lack of centralization increases the risk that individuals’ biases will come into play when they negotiate compensation. Other aspects of the hiring and onboarding process can also be formalized: Montanya Distillers has a standardized digital onboarding process that ensures every employee reads the same handbook and other documents. “There’s no chance someone will be getting information on short- or long-term disability insurance and someone else won’t,” Hoskin explains. “And then you have a recorded electronic signature certifying the employee has read through everything.” 5. Communicate those to employees. If a compensation plan is truly fair and
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Karen Hoskin of Montanya Distillers
equitable, there’s no reason management wouldn’t be able to have frank, open discussions with prospective or current employees about why they earn what they do. A written compensation plan also makes salary and benefits negotiations much easier; an employer can feel confident explaining what the job pays and why. “Be able to sit down with two employees and explain ‘Here’s exactly why each of you makes what you do,’” Carnahan says. “The more transparent you are, absolutely you’ll be an employer people want to work for.” 6. Don’t ignore benefits. Salary, vacation time, benefits, perks—they’re all part of total compensation. Carnahan says it’s important for businesses to make sure that it’s not just salary but overall compensation that’s equitable among all employees. One significant but thorny piece of that is employer healthcare premiums: “If you pay a percentage of health insurance, that 50% is worth a lot more in total compensation to someone
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with a family than someone with no kids,” he explains. “Organizations should consider paying a flat amount instead of a percentage.” 7. Audit your pay practices. Grenya recommends an internal or external audit of a business’s compensation every three years. During that audit, compare compensation among employees at your organization, as well as how your company’s compensation structure compares with other businesses in your industry. Some states, including Oregon, legally require an internal pay audit every three years. Addressing pay equity can lead to some uncomfortable internal conversations. But experts emphasize it’s always better to confront potential inequities early rather than ignoring them and exposing a business to legal liability. Carnahan says pay equity is an investment, both in hiring and retaining the best candidates and in protecting a company from
liability. Better to stretch your budget to bump an employee’s salary by $5,000-$10,000 so it’s equitable than to be hit with a multimillion-dollar class action lawsuit later. Hoskin says that pay equity is within reach, even for the smallest distilleries, if owners truly make it a priority. “I can easily see a company saying ‘I can’t really afford to create a state-of-the-art compensation structure that’s equal and well thought out and provides benefits.’ But I can easily imagine that same person saying ‘We really need to spend $75,000 for this promotional firm to do tastings around the country,’” she says. She admits Montanya had to really stretch its budget to be able to create an equitable, competitive pay structure, but she says the company is seeing a return on investment because its employees are enthusiastic and essentially act as brand ambassadors in their communities. “I reap more benefits from doing [pay equity] from the get-go,” she says, “than I would have from waiting for some magic moment when it feels attainable.” ■
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Retail: On-Premise
FLIGHT PLAN Craft spirits producers look tentatively toward a future at airport bars. BY KATE BERNOT
Before the coronavirus pandemic walloped global air travel, airport bars were in the midst of a renaissance. Once the butt of jokes, these watering holes for weary travelers were being upgraded with better-trained bartenders, creative cocktail programs, and most importantly, local and craft spirits and beer. “We’re proud that we’ve put an additional focus on local and craft beverages,” says Tyler Pitman, vice president of portfolio development & brand partnerships at HMSHost, a hospitality company operating restaurants and bars in more than 120 airports globally. “Craft beverage has become such an important piece of the business and industry.” The success of licensed partnerships like Cure in the Louis Armstrong New Orleans International Airport and Publican and Tortas Frontera in O’Hare International Airport prove airline passengers are eager for more sophisticated, authentic experiences—even if
they don’t have time to leave the terminal. “Working with and aligning with craft and local spirit companies that are the fabrics of communities allow us to build an extension of that community into the airport,” Pitman says. Of course, COVID-19 changed the airport landscape, including its bars. For some dates in early April, the Transportation Security Administration saw security checkpoint traffic plummet to just 5% of what it was on the same dates one year ago. By mid-May, the rate had ticked up slightly, to roughly 8% of last year’s volume. Numerous airport bars and restaurants remained temporarily closed well into spring. The question for such bars—and the distilleries whose products they serve—is what a return to normal air travel will look like, and when to expect it. The International Air Transport Association predicts international air travel will not return to normal until 2023,
Great Wagon Road’s bar at Charlotte Douglas International Airport was forced to close soon after the pandemic began.
though domestic flights may rebound sooner. If there’s any good news for airport bars and the beverage manufacturers that serve them, it’s that demand for local and craft products is likely to pick up again once air travel does. Few people have had a closer view of how quickly the pandemic has changed airport bar business than Oliver Mulligan, the founder and owner of Great Wagon Road Distilling Co. in Charlotte, North Carolina. After a year of preparation, the distillery opened a licensed outpost of its The Broken Spoke bar in Charlotte Douglas International Airport in mid-February. Ten days later, the coronavirus forced it to close.
The silver lining of decreased traffic is that bartenders have the time to meaningfully interact with customers and give them full attention.
“It’s been a hell of a time but we’ll come out better for it,” Mulligan says. “It’s still a great thing for us to have an airport project.” The bar, a partnership with HMSHost, was attractive to Mulligan for a number of reasons. First and foremost is sheer volume: 45 million travelers pass through the Charlotte airport every year. Not only are the sales attractive, but the bar is a massive marketing opportunity to introduce visitors to Great Wagon Road. The airport location also stocks other brands’ liquors, creating a prime opportunity for sampling. A Jameson drinker might be easily persuaded to try Great Wagon Road’s Quinn’s Barrel Aged Whiskey. That’s important for a company that, Mulligan admits, has never spent much money on marketing. “At the airport, we can sell swag and give recipe cards. We sell [our products] in eight states and online with service to 32 states, so people can get spirits and cocktail recipes there that they want to make at home.” Mulligan has been impressed by the attention to detail from his HMSHost partners. From the uniforms to the cocktail recipes, everything about the airport project is designed to mirror the experience a drinker would find at The Broken Spoke in Charlotte proper. Mulligan was even able to work with the staff there to ensure they’re using the same type of ice and same brand of cocktail cherries. He personally trained the airport bar’s staff, and refresher training will be held quarterly. If the location is successful, when the airport
renovates the specific terminal in five years, The Broken Spoke could be offered a larger location that includes a kitchen. The partnership also fit HMSHost’s priorities. The company has specific criteria for its liquor brand partners, both those that it licenses for bars and restaurants and those that it stocks at existing venues. Pitman says he relies on HMSHost’s local team as well as its distributor partners to identify distilleries that are fast sellers in a local market. Those brands must also be established enough to meet the huge volume demands of an airport. “We certainly can’t run out. There’s a lot of traffic in an airport; it’s a captive space,” Pitman says. “Typically when we’ve aligned with a beer, wine or spirits partner, we quickly become their number one account because of the traffic we see every day.” Once an airport restaurant or bar has stocked a local distillery, it’s up to staff to make sure customers know this craft spirit— not just the global brands—is on the back bar. At the Denver International Airport location of Root Down, a seasonally focused restaurant that prides itself on local ingredients, the bar makes an effort to prominently display local products from distilleries like Spring44 Distilling, Leopold Bros. and Laws Whiskey House. If a customer is in a rush and orders a drink with a national liquor brand, the staff will accommodate that in the interest of time, but general manager Nicole Passell says staff does try to introduce drinkers to small-batch
brands. The bar doesn’t stock Coke or Pepsi products but instead uses products from Rocky Mountain Soda Co., which offers a natural “in” to talk about local products. “We get to start the conversation right away when someone orders a Jack and Coke,” Passell says. “We’re able to explain that we don’t carry Coke or Pepsi, then dive into our ethos about using local. We can say ‘We also have some local whiskeys and gins, if you’re interested in experiencing a real Colorado cocktail from the mixer to the spirit itself.’” Bar manager Derek Smith says Root Down saw business decrease 95% in the bar after the coronavirus hit, but that volume began to pick up again around May 8. The bar staff has upgraded its safety and sanitation precautions, wiping down menus, soda guns and tap handles on a schedule to help keep guests and customers safe. Smith says the silver lining of decreased traffic is that bartenders have the time to meaningfully interact with customers and give them full attention, which often includes talking up some of the local products. No one can say precisely when drinking at airport bars will begin to feel normal again, but whenever it does, local spirits are likely to stay an important part of that experience. “The goal is really elevating the experience,” Pitman says. “Now someone can be really excited about the drink they’re going to order at the airport.” ■
Cure, a cocktail bar in downtown New Orleans, also has a location at Louis Armstrong New Orleans International Airport.
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Retail: Off-Premise
A SMALL BUSINESS FOR SMALL BUSINESS Chicago’s Independent Spirits Inc. is a boutique retailer for boutique brands. BY JEFF CIOLETTI
With most of the on-premise still operating at radically reduced capacity and mainstream off-premise shelf space hard to come by even in the best of times, retailers like the aptly named establishment Independent Spirits Inc., in Chicago’s Edgewater neighborhood, could offer craft spirits producers one of the few true lifelines—outside of direct-to-consumer shipping (in the states that allow it)—as we continue to navigate through the pandemic. “We opened in the summer of 2013 and the goal, the mission of the place was to be a small business that supported other small businesses—of course, focusing on quality products in general,” says owner Scott Crestodina. “People call us a wine shop, people call us a liquor store—we’re very much both of those things.”
In his past life, Crestodina managed both a liquor store and a wine shop and sought to combine those worlds and focus mainly on small, independent producers, importers and distributors. “We try to send the bigger check to the smaller companies,” he says. And, the shop has been able to keep doing that during the pandemic, even as in-store tastings—one of the activities craft produces rely on to connect with new consumers—were forced to grind to a halt. “Tastings were a huge part of the business,” Crestodina notes. “We did a minimum of one tasting a week, sometimes three a week, which was kind of the driving force of the business.” Luckily, Independent Spirits’s sales didn’t take much of a hit when that number went to zero. “It turns out,” he adds, “people still want to
“It turns out, people still want to drink whether we do tastings or not.” —Scott Crestodina of Independent Spirits, Inc.
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drink whether we do tastings or not. When people ask when we’re going to start again, I say ‘Check back next year some time.’” As much as his community misses the tastings, Crestodina is not in a big hurry to reinstate them. “Like all businesses, we have a responsibility to the neighborhood to not get everyone sick,” he says. “Obviously people have to wear masks and follow all prevailing guidelines. Keeping everyone and their families safe is our top priority.” When COVID-19 hit, Crestodina already had a website in place for online ordering that few previously had used. “A lot of people weren’t aware that our whole store is online in real time,” he recalls. “If we run out of something it disappears entirely from the website.” (It’s currently running the discount code “COVIDSUCKS” for a 10% discount on any 12 items). The business converted practically overnight for in-store pickup. Independent Spirits doesn’t do its own delivery, but does ship using a third-party service. “That took off pretty seamlessly, we just ramped it up,” Crestodina recalls. “We didn’t really send out emails about online ordering for store pickup. It just blew up pretty quickly.” It also helps that it’s set up as a bartending supply store, since most cocktail aficionados were forced to make their own at home when the restaurants and bars closed. When the shutdown happened, Crestodina intentionally went fairly silent on marketing. “It felt irresponsible to tell people to go out and shop,” he says. “Business was good enough anyway, why even try to increase it? I had kind of online silence for the store, I posted four things since the whole thing started and I don’t think any of it had to do with liquor.” He believes it’s irresponsible to promote putting one’s neighborhood at risk. “The world,” he says, “is a different place now.” ■
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business sense
LOCATION, LOCATION, LOCATION Dalkita Architecture & Construction’s Colleen Moore advises on the distillery site selection process. One of the first important decisions you’re likely to make as a distiller is selecting the ideal site for your distillery—and, therefore, it’s not one to be taken lightly. We reached out to some experts on the subject, Dalkita Architecture & Construction, to offer some critical insights on the process. Director of marketing and operations Colleen Moore was kind enough to let us pick her brain, as was principal architect Scott Moore, who chimes in toward the end. What are some of the biggest errors distillers make/pitfalls to avoid when they’re scouting new sites? And how do they avoid them? Colleen Moore: One of the biggest mistakes that we continue to see over, and over, and over again is confusion around if sprinklers are needed in a facility. To save everyone time—YES. Sprinklers are needed for a distillery with more than 120 gallons of alcohol over 20% alcohol by volume in use or process. Which is to say, any distillery outside a tiny, hobby-level setup requires sprinklers. For established distilleries looking to expand the infrastructure around an existing building: the size of, and distance to, the water main has been an issue that comes up on every project. Sometimes it emerges as a deal breaker if it is too far from your property. Truck access for shipments and deliveries is also another issue that is overlooked and can be a deal breaker for urban sites. What are the biggest questions every distiller needs to ask during the process? CM: There are innumerable questions that go into every project. The disparate answers are unique to that business, in that facility, on that lot, in that town, in a given time. We
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believe it is important to have a symbiosis between the business and the facility. The facility has to work to support the business and your brands—not the other way around. The ol’ form follows function mantra for modern American architecture. Having a good grip on your business model is key. Are you production-oriented or, visitor/tasting room oriented? Or, if it is a balance—how is it weighted between the two? If the world blinks and you couldn’t do one or the other—will this facility be able to function for you? Has the pandemic changed the game at all, as far as health and safety-related things to consider when designing a facility? CM: The pandemic has definitely changed the consumer-facing portions of distilleries. The pandemic affects the production side, too. The health of the production team is critical to sustaining business. We are living through the scientific method—LIVE! We are watching hypotheses be developed, investigated and advanced or discarded in real time. Information is changing rapidly. Early recommendations for this pandemic were nearly the same advice and guidance that was established in the 1918 influenza pandemic. Now, we are learning new things about this virus. A focus on ventilation, air handling and appropriate air filtration has started to emerge as a priority from the research. Surfaces that are easily disinfected are still important. The challenge is to take all of these new needs and incorporate them into the space in a thoughtful and beautiful way. That is an exciting challenge we are happy to work on. Cleaner, safer spaces are better for everyone. What’s the bigger challenge: designing a new site from scratch or retrofitting an
existing facility to suit a distiller’s specific needs? CM: Location. Location. Location. The tried and tested real estate adage will determine if vacant land is available to meet your needs or if an adaptive reuse is the best fit. Scale is a crucial factor. The larger a project gets, the more likely that a new build will be more cost effective than a re-model. Each project has its own unique assets and pitfalls. The cost/ benefits have to be weighed and the people behind the distillery must determine if they can ultimately bear the cost. The tricky part is future-proofing those decisions. An example would be locating your distillery in a rural setting versus an up-andcoming historic district. Sure, there are fewer* regulations or restrictions when you start from scratch. There is also less infrastructure to utilize which may represent hidden costs for your project. Ultimately, is a lack of foot traffic an acceptable loss to have all your piping and utilities perfectly laid out with room to spare? That answer is probably different today than it was at the end of 2019. Every project is a retrofit to some degree. Some are barren land with no utilities. Others are former industrial use buildings in a now gentrifying or redeveloping area. They are just different problems. We have never run into a project where cost is no object. Money is a resource and like everything else we should use it wisely. What are five key pieces of advice you’d give to distillers during the process? CM: Know your numbers. Know what you are going to make and the scale you want to make it. Easier for an established distillery. More difficult for one just starting out. Use a medium-term timeline—say, five to 10 years.
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Look for a facility to accommodate the business at the year-three to year-six mark with a little room to expand. Ideally at the end of the term, the distillery is busting at the seams to grow or move into a new space. When your production capacity projections look like it will limit your growth—that is when you know the timing is right to look to your next solution. Start planning at least 1-2 years out for facility moves/reconfigurations. Assemble a team. Listen to your advisors and trust the people on your team. Being in business is inherently a problem-solving activity. Approach it with your team of heroes and work together to arrive at solutions. Keep an Open Mind. Avoid preconceived ideas. You may have a dream of a distillery that looks just like the Taj Mahal. Forcing a distillery use into the rigid definition of a North Indian mausoleum from the 17th century will quickly expose the harsh costs reality demands to make that idea cross into the real world. Form follows function. Let the idea of your distillery evolve organically and be what it wants to be. Embrace the elements needed to be successful. Organize Plan Create a Check List. Those who fail to plan, plan to fail. Develop a program, or list of uses, for the new space including basic requirements like areas for different uses (lounge, barrel room, bottling line), utility needs (electricity, steam, gas), and site access (pedestrian, bike, heavy trucks). Evaluate properties on the market against the check list. Eliminate those that do not meet your requirements. Select only those that seem appropriate to invest more time into analyzing. We call this due diligence and have a list published on our web site that is a good starting point specifically for distilleries. How would you characterize the ideal distiller/architect partnership during these processes? CM: The ideal distiller/architect partnership is exactly that—a partnership. We believe in being a mutually-trusted advisor and a cooperative problem solver. The distiller is the keeper of knowledge on the production/ marketing side of the equation. We help facilitate the interactions with the local officials, local professionals—in some cases the local tradespeople—to translate the theory of how a facility should work into reality. A lot of our success comes from educating key players on basic distillery operations in a structure they understand—the building and fire codes. The ultimate goal is a facility that is happy to be in their location and a location that is happy to
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have them as part of their community. We do all of this by making the project a use-by-right (vs. a political favor) all while juggling and riding a unicycle. How much time, on average, would you say the entire decision-making process takes/ should take? How many options, as a rule, should the distiller be seeing before making this decision? CM: As a rule of thumb: 12-18 months after a site is selected, is a good timeline for an entire craft distillery design/construction project. Site selection and real estate negotiations usually take anywhere from one to six months. The protraction of that process is dependent on factors like size of the distillery, the metropolitan market and if it is a lease or a sale. There are factors that can take that timeline and speed it up (angel investor flush with cash, facilities that housed a similar use previously—like a brewery or another distillery) or slow it down (world-class metropolitan areas, historical districts, neighborhood organizations, poor phase 1 environmental reports). You mentioned that as one of the first big decisions they make as distilleries, it could make or break their business. Have you heard any horror stories within the industry (not naming names, of course)? CM: Make sure you’ve covered the basics before committing to a site. We’ve had a couple of projects that signed onto a site prior to engaging our firm. There is always some hidden “gotcha” moment in those projects. Some element—that was not initially accounted for in the decision to choose this, specific property—that wreaks havoc on the project scope and/or budget. Those moments are usually expensive for the distillery, but not usually insurmountable. An example would be selecting a site only to find out the water main is too small or needs to be replaced and the city wants the distillery to pay for it and do all the work. Another time, the water main was too far away and the trench for fire water (that feeds fire sprinklers) would be hundreds of thousands of dollars—just the trench to run a pipe! In that case the trench went under a major roadway, and had to connect to the water main two blocks away. Traffic detours, signage and flagmen were involved. That project was able to redirect and select a site with more favorable infrastructure. If they had already selected and bound themselves to the site—unknowingly taken
Colleen Moore
Scott Moore
those costs on—then other items would need to be sacrificed to pay for the trench. Things like equipment. A situation no one would have been happy living with—save, the city. It would be much better to know about those potential costs up front prior to committing and potentially negotiate lease/sale concessions or cost sharing to help lift the burden, if it is ultimately worth it. Scott Moore, Principal Architect: Listen to your advisors and trust the people on your team. In one instance, Dalkita looked at the program and design requirements, provided an initial budget for a project. The distillery set a goal of doing the project for 80% of the budget we arrived at based on their wants and needs. We moved through the design process with the addition of a well-known and well-respected contractor to price the design. At the end of that process, the contractor told the distillery that the project would be 20% over budget. Rather than heeding both Dalkita’s and the contractor’s professional opinions—the distillery chose to proceed with the over-budget design and bid the project to multiple contractors. It came in around 20% over-budget with each of the bidders. A lot of time and money were spent to dance around the same number from several parties without either accepting the cost or making any suggested substantive changes to reduce the cost. ■
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Sales & Marketing
COMPLETELY RELATABLE A public relations pro talks about PR strategies for all craft spirits producers— in pandemic times and beyond. Gather PR’s Alexandra Clough, a seasoned public relations professional who specializes in beverage brand building, offers her insight on some of the most common questions and addresses some of the misconceptions about the role of PR in your business. In a year that’s been anything but normal, it’s more critical than ever to adopt a dynamic PR strategy. What are some of the recurring questions you get from clients related to the role of PR in their operations? Alexandra Clough: I’d say the most common questions are: • We’ve won so many awards, why doesn’t this translate for us from a PR perspective? Answer: Though an awards strategy is a critical sales tool (just think of the customer shopping experience when shopping for new brands at a retailer— when stumped, they’ll often defer to brand packaging or awards credentials), it is not an effective tool from a PR perspective. Often these competitions are backed by media outlets themselves, creating an inherent conflict of interest. Other times, reporters see right through the somewhat inconsistent methodologies behind some (though not all) of the competitions as well. • How do I punch through the competition? Answer: With great liquid, a compelling story, disruptive packaging and persistence. With the press, persistence is key. It often takes months to land stories, as public relations is just what it sounds like —a relationship-driven business. • Why do I see one craft spirit for every two strategic brands mentioned? Answer: Often, this comes down to PR budgets and sadly, product availability. National press are often less interested in covering regional brands, as their
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readerships needs to be able to access the products they report on. And though there are phenomenal publicist and PR firms out there at a variety of price points, often it’s the big, strategic brands that most heavily invest in PR support. What would you say are some of the most common mistakes companies/brands/ distillers make from a PR standpoint? AC: A few things: • Often PR is an afterthought when launching a new brand—publicists or agencies are brought into the process once your brand story has been fully developed and sales materials are ready to go out the door. Often clients think it’s just a matter of getting your story to the press. But PR can be so much more than that, and the most effective PR/client relationships happen when the publicist or agency is a true partner. That means they’re working with you from the ground up as you develop your story and your messaging, ensuring it will resonate with the press just as well as it will resonate with the drinks trade. • It takes time to see results. As a rule of thumb, I generally don’t take on clients for less than six months. That’s simply because it takes time to see results. That’s even more true when launching a brand—especially if there is still storyline and message development work that needs to be done. Some brands seem to rely too heavily on social media influencers to get their message out. Explain, in your view, why this is a flawed approach? What should be the balance between traditional earned media and social media influencing in a company’s PR plan. AC: Social influencers are an incredibly effective tool to generate brand awareness. The
key is to develop the right social campaign and to align with the right like-minded people. Influencer campaigns should aim to amplify your existing content, and should not be relied on as standalone programming. While this gatekeeper audience can help introduce new fans to your brand, your consumers generally want to hear from the people who make their products each and every day. The greatest perk of social media is the ability to foster direct connections with your consumers, so use influencers as a tool to do just that. How has the pandemic changed what you do and how has it changed the role of public relations for distillers? AC: PR in the Time of COVID has certainly required us to pivot, but it has also provided ample opportunity for direct consumer communications as a result of four key trends: 1. More time at home. More time at home creates a need to ‘escape’ virtually and foster connections that are often found outside the home; brands can insert themselves in a meaningful way. 2. Need for happy storytelling. In the darkest of times, ‘hometown hero’ stories resonate. Our industry has achieved national goodwill with our sweeping hand sanitizer efforts and other community support programming. Likewise, media are in need of some happiness themselves, and ‘surprise an delight’ approaches go a long way. 3. Abundant support for small business. With communities in need and independent businesses across the nation suffering, consumers are increasingly motivated to shop small and support their local small businesses. 4. Ability to reach consumers directly. Though this is not a new shift, COVID has dramatically amplified the benefits of reaching consumers directly. This is no longer just through social, but
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“... there’s a need for escapism and happy storytelling that exists now more than ever. So trying to play into that—authentically that is, never superficially— will help move the needle.” —Alexandra Clough of GATHER PR
increasingly via Zoom. On the sales side, the benefits of direct shipping are creating even more opportunity. How do companies avoid tonal pitfalls related to the current pandemic? ie: On one hand you’ve got to be sensitive to the broader economic and consumer landscape at this time, but on the other you’ve got to stay connected with them and remain visible. What’s your advice there? AC: It’s always important to avoid coming across as tone deaf, but at the same time, we are all universally aware of the uncertainty of today’s climate. While you never want to take advantage of this broad consumer sentiment, there’s a need for escapism that exists today more than ever. One of the greatest opportunities for brands right now is exactly what I mentioned above: the need for happy storytelling and distraction. What are some of the biggest lessons you’ve learned during the pandemic and how can you convey that to clients? AC: Having a crisis plan in place is absolutely
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critical. My mother always used to say “if you plan for the worst, it will never happen,” and I live by that motto today (thanks mom). It’s a simple process to establish these processes, and it makes communicating much easier during what are already difficult and stressful times. I always outline five key steps to developing a crisis plan: 1. Develop your plan. Identify the worstcase scenarios that could happen, and try to envision how you would handle each of these situations. 2. Appoint spokespeople. You should always know ahead of time who is best served to speak publicly on behalf of your brand. Ensure they are message trained and aware of their respective roles in times of crisis. 3. Craft your message. Bullet out some key talking points for each of these scenarios. 4. Gather your team. Brief your entire team on your internal crisis communication plan to ensure everyone knows what to do and how to communicate in case of emergency.
5. Revisit regularly. Review and revise your plans regularly to ensure your messaging and ways of working remain current. What sorts of stories are media outlets looking for this year versus normal years? Are they pretty much done hearing about hand sanitizer (as well as other health/ safety-related initiatives? AC: As I’ve already mentioned several times, there’s a need for escapism and happy storytelling that exists now more than ever. So trying to play into that—authentically, that is, never superficially—will help move the needle. Though hand sanitizer is old news at this point, our industry has achieved incredible goodwill through those efforts, and stories about community support will always resonate with the press. As we close the book on sanitizer, direct shipping and Federtal Excise Tax relief will become even more important— the time is now to leverage the goodwill we’ve earned through our efforts in order to cement the future of our industry. ■
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CRAFT SPIRITS LIVE
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COVID’S LONG SHADOW Production of Craft Spirits, 2019 vs. 2020 (Projected)
About the same: 20.7%
2020 (projected) 18,981,717.1 Global (000 liters)
21,470,700.2 2019 Global (000 liters)
U.S. (000 liters) 2020 (projected) 1,994,864.2
U.S. (000 liters) 2019
2,106,774.0
U.S. and Global Spirits Volume, 2019 vs. 2020 (Projected)*
According to Euromonitor International Ltd., overall volume of U.S. and global spirits will decline from 2019, which is largely driven by the impact of the COVID-19 pandemic on on-premise sales.
More: 34.5%
Less: 44.8%
In a recent installment of the Craft Spirits Weekly newsletter, we asked craft spirits producers if they expect to make more, less or about the same amount of spirits in 2020 compared to 2019.
Projected 2019-2020 Volume Change*
U.S.
-5.3%
Global
-11.6%
*Source: Euromonitor International Ltd.
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