Artisan Spirit: Winter 2015-16 by Artisan Spirit Magazine

WINTER 2015-16

LEARN TO

SPEAK in CODE

OSHA, instead of

OH SH%#!

DEVELOP

YOUR NEXT RECIPE

nerd style

THE CONGENER

conundrum

total recall:

PREP FOR A “WORST-CASE” SCENARIO

Strategic Brand Design for Alcoholic Beverages.

DESIGN FOR PACKAGING, LOGOS, CUSTOM BOTTLES, COLLATERAL, SIGNAGE, WEBSITES & NAMING 2787 napa valley corporate dr, napa, california 94558 t | 707 265 1891 www.cfnapa.com

TABLE of CONTENTS A LETTER FROM THE EDITOR

QUARTERLY U.S. GUILD REPORT

What’s going on, state-by-state

DSP FEDERAL REPORTING

Excise Tax Return, TTB Form 5000.24

WORKING IN CODE 70

PROOF 21 A candid conversation about Washington Distillers Guild’s annual event

The road to High Hazard (H-3) occupancy

YOUR WINDOW TO THE WORLD

Websites, domains, SEO, and more

DEVELOPING YOUR RECIPE 25 Nerdy fun with Gas Chromatography and Mass Spectrometry

WHAT’S IN IT FOR ME?

GROWING GREAT WHISKEY

Industry trade groups and the value of teamwork

MOLECULAR BIOLOGY FOR IMPROVED FERMENTATION EFFICIENCY

PRODUCT RECALLS 33

Understand how yeast contribute to the flavor profile of distilled spirits

Navigate this “worst-case” scenario

THE CONGENER CONUNDRUM 39 Quality is all about congener diversity and quantity

THE 80/20 RULE FOR SPIRITS BRANDING

Brand Buzz with David Schuemann

3 HOWLS DISTILLERY

Whiskey Acres Distilling Co. of DeKalb, Illinois

of Seattle, Washington

BAD HABITS

Common gaps on the road to compliance

THE ALL-IN-ONE SKID DISTILLERY

Specific Mechanical Systems

MAKE A LASTING IMPRESSION WITH THE RIGHT TASTING ROOM GLASSWARE

Let’s narrow down the choices

DRY MILLING FOR DISTILLERY OPERATIONS

Fun with hammer mills, roller mills and cage mills

at the 2015 Chicago Independent Spirits Expo

A TREE GROWS IN NEW YORK

104

American White Oak demand, processing and terroir

KNOCK, KNOCK! YOUR CRAFT BOOZE IS AT THE DOOR

The growth of online delivery services continues

OSHA COMPLIANCE AND SAFETY FOR DISTILLERIES 58 Improve financial performance and increase enterprise value

FRUIT DISTILLATE FERMENTATION

The art and science — Part 2

UP, UP AND AWAY

106

FEW Spirits of Evanston, Illinois

THE NEVER ENDING CAMPAIGN FOR RELEVANCE

109

It’s about creating fans

DIY: SHOP VACUUM AUXILIARY TANK & BOTANICALS GRINDER

111

Build it yourself

WESTLAND DISTILLERY’S SINGLE MALT SUCCESS

from the COVER

100

Applejack history and recipes

INDUSTRY ROUND TABLE

of Seattle, Washington

YOU DON’T KNOW JACK

ADVERTISER INDEX

Westland Distillery in Seattle, Washington. Image by Amanda Joy Christensen. See their story on page 63.

114

Issue 13 /// Winter 2015-16 PUBLISHER & EDITOR Brian Christensen CREATIVE DIRECTOR Amanda Joy Christensen SENIOR WRITERS Amber G. Christensen-Smith Chris Lozier

Steven Seim

CONTRIBUTORS

Luis Ayala Shawn Bergeron Maggie Campbell John Cox Joy Ghosh, Ph.D. Toby Hall Harry Haller Patrick Heist, Ph.D. Attila Kovacs Margie A.S. Lehrman Ryan Malkin

Marat Mamedov Eric Marcotte Jim McCoy John McKee Robert Pignataro Carter Raff Jeanne Runkle David Schuemann Donald Snyder Marc E. Sorini R. Scott Winters

ILLUSTRATOR Amanda Joy Christensen

PHOTOGRAPHERS Danielle Atkins Amanda Joy Christensen innovative & custom solutions

Brian Christensen Carter Raff

SALES & MARKETING Ashley Monroe

20+ years experience 100% dedicated customer service

ARTISAN SPIRIT is the endorsed publication of the American Craft Spirits Association. ARTISAN SPIRIT is a quarterly publication by Artisan Spirit Media. www.artisanspiritmag.com

gdchillers.com

1.800.555.0973

facebook.com/ArtisanSpiritMagazine

twitter.com/ArtisanSpiritM

General Inquiries (509) 944-5919 Advertising (509) 991-8112 PO Box 31494, Spokane, WA 99223 All contents © 2015. No portion of this magazine may be reproduced without the written consent of the publisher. Neither Artisan Spirit Media nor ARTISAN SPIRIT magazine assume responsibility for errors in content, photos or advertisements. While ARTISAN SPIRIT makes every effort to ensure accuracy in our content, the information is deemed reliable but not guaranteed. We urge our readers to consult with professional service providers to meet their unique needs. At ARTISAN SPIRIT, we take the opportunity to enjoy many different craft spirits and adult beverages. However, it’s also our responsibility, and yours, to always drink responsibly. Know your limit, and never drink and drive. ARTISAN SPIRIT’s number one goal is to share and celebrate the art and science of artisan craft distilling. But please remember to follow all the laws, regulations, and safety procedures. Be safe, be legal and we can all be proud of the industry we love.

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Evan Batt  

      

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THE NEXT BIG THING. The number one question we receive at Artisan Spirit Magazine

relates to current and future industry trends. This includes trends in production, equipment, and products...

Along with the continued rise of craft brands there will be a continuing growth of the small to mid-size distributors that deliver and sell these products in each state. This newer distribution tier will be the driving mechanism in allowing craft brands to reach beyond their own states. Though larger distributors are already forming craft divisions in their portfolio, the attention to those portfolios falls way behind this new batch of distributors. — Philip Kolodziey

More than any “one” trend, I’ve noticed that in a nutshell, “Anything Goes!” When taking barrel orders, whether for new or old customers, I rarely get asked “What’s everyone else doing?” Keep being your own brand of “normal,” makes life a little more interesting for us all! — Heidi Korb (Karasch)

A recent trend I’ve seen in alcoholic beverages is the cross-pollination across the spirits, wine, beer, and cider sectors. For example, we’re seeing unique recipe formulations such as hop flavored vodka, bourbon aged in wine barrels, and even wine aged in bourbon barrels! Conversely, wine is borrowing from beer and spirits, who have long leveraged flavors, with new product introductions that incorporate natural flavors like jalapeño or exotic fruit. Distillers should continue to look to other alcohol beverage categories not only for new flavor trends and aging techniques, but also branding and package design best practices. — David Schuemann

More recently, distillers are starting to explore equipment such as mash cookers and fermenters that is more aesthetically appealing while maintaining functionality. This of course is due to wanting to provide the “wow factor” when customers visit the distillery. Options such as shiny #4 material finish, grinding and polishing the welds, and laser etching their logo on the tanks are becoming a common trend. We really enjoy helping distillers accomplish their vision and finding ways to maximize their dollar. — Jake Lipscomb

LLE ISTI D PRO BY

S UCT

L AS

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We’ve seen an increasing trend the last two years with distillers offering cocktail classes and workshops. Distilleries are creating exciting new drinks using their spirits in interesting ways to broaden their customer base. The classes create a captive audience, and as a result we now offer a new premier line of bar ware and expanded glassware line for branding. — Janie Cantrell

Higher energy efficiency has been a growing concern for quite some time in industries across the board. There are many ways to increase energy efficiency in a distillery’s refrigeration system, and the feasibility of the different options varies by location and environment. In cooler climates, there are generally applications for high efficiency cooling towers or fluid coolers. Warmer climates may utilize night air cooling or hybrid systems using a combination of various refrigeration options, and thermal storage systems. Many local utilities also offer incentives for variable speed fans and pumps, which are an option in nearly every application, and are an affordable way to easily gain efficiency during non-peak cooling times. — Paul Johnson

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Our mission at ARTISAN SPIRIT is to share and celebrate the art and science of artisan craft distilling. We are humbled by the support of our sponsors. With their help, we On Thanksgiving at my house the trend was turkey. can further our common goals I was a big supporter of this trend. But I was last in of supporting creativity, line, so what did I get? The neck meat. If you want to position innovation, and integrity yourself off a trend first look at how long it’s been a growing trend, within the industry how long you think it will grow for, and how you are positioned to enter that we all love so trend. Then decide if that’s where you want to be. Right now it’s hard to get a much. moonshine or vodka on the market—those trends grew, maybe to the highest point already. Do you want to get the neck meat of that market? Maybe not. But maybe so, it does help make great gravy. — Colin Blake

Consumers are showing preference for smaller brands that are visibly authentic. That means it’s important for distillers to have a strong brand identity that conveys honesty and quality, and to ensure their packaging reflects their identity and differentiates their brand on the shelf. This can be accomplished by using natural materials like earth-toned glass and wood, embossing the bottle with design elements or brand information such as the date the distillery was established, and decorating the label with hand drawn illustrations, graphics or type. — Raul Parades

Farm distilleries, guilds, and gin, are all topics of hot discussion at the moment that I’m hearing about. The hottest topic might be the states that are changing their laws to allow add-on restaurants and tasting rooms. What a huge benefit to craft distilleries. Who would not want to add two focused outlets for their products and have traveling tasting rooms floating all over their state? — Kevin Dunbar

For me the biggest trend I am seeing is that shoppers are purchasing higher ticket items more frequently than in the past. Consumers are also open to trying new things but they have to either have a recommendation or a personal experience with the product. When thinking of your brand, make sure that you incorporate a sampling plan that allows consumers to experience the product. — Eli Aguilera

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A LETTER FROM THE EDITOR: When distillers apply for a qualified subscription on our website, we ask two questions...

1. “What do you think of Artisan Spirit Magazine?” 2. “What kind of information and education do you want to see Artisan Spirit Magazine publish?” The first question is basically there to help feed my own massive ego

(validate me!). The second one is the real key. The answers we get are varied and hugely valuable in helping drive the focus of our educational content and editorial views. It’s interesting to note that one of the most common requests concerns trends. Not just product trends, but everything related to distilling. It makes sense that as a community we are not only consumer driven, but peer inspired. We hear it enough that we decided to highlight it in the sponsorship section at the beginning of the issue, and intend to continue tracking the subject in the issues ahead. Rounding out reader feedback is a request we have been receiving from day one: keep the technical articles coming. The harder hitting and in-depth, the better. It turns out our reader base is damned smart. That’s why you’ve seen a continued steady creep of technical articles, deeper marketing pieces, and high-level content. This advancement is not surprising considering the growth and maturation of this relatively young industry. Nearly every article we publish now challenges and expands my knowledge and understanding. I love it. This industry is full of bright, hard working people willing to help others grow by sharing their passion and expertise.

Cheers to you — let’s keep it going.

Brian Christensen

CALL:

(509) 944-5919

EMAIL:

brian@artisanspiritmag.com

WRITE:

PO Box 31494 Spokane, WA 99223

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Y L R E T R A QU D L I U G U.S. RT REPO

port” is a . Guild Re .S U y rl e rt e’s “Qua lling it Magazin entire disti rtisan Spir eeping the k t a d e im a his is the g column ate level. T st y b reoccurrin te a a st orts, formed on gislative eff ated and in d p u ry st rmation, le u fo ind in s, w e f to share n eral state o ate guilds on the gen d te a place for st d p u y communit d keep the events, an ffairs. distilling a

ALASKA DISTILLERS GUILD OF ALASKA Alaska, the last frontier of distilling, now has a growing distilling industry. The Distillers Guild of Alaska was formed in 2014 with four member DSPs. The founding distilleries are Ursa Major Distilling (Fairbanks), Port Chilkoot Distillery (Haines), Anchorage Distillery (Anchorage), and High Mark Distillery (Soldotna). The Guild initially formed to write and push for state legislation, in the form of HB309, to allow for direct sales and on-site tasting rooms. The bill was signed into law

in October 2014, allowing the five operating DSPs in Alaska to open tasting rooms this year, which all seem to be a big success. The Guild works closely with the Alaska Tourism Industry Association, Alaska Farm Bureau, CHARR, and the Alaska Department of Economic Development to promote the distilleries and to stay involved in legislative issues. The Guild was awarded a legislative citation by State Representative Chris Tuck (D-Anchorage), acknowledging the contribution to economic development and small business growth in Alaska. The Guild worked with the State and the University of Alaska to develop an “Export Opportunities Guide” for craft spirits

and beer and is also working in partnership with the Brewers Guild of Alaska to create the first annual “AlaskaCrafted” tasting event to be held in Anchorage in May 2016. Ursa Major Distilling and Anchorage Distilling use only Alaska-grown grain and work directly with barley farmers here to maintain an “Alaskan Grown” and “Made in Alaska” certification. There are four new distilleries being built in Alaska, including our newest member, Amalga Distillery (Juneau). Heather Shade Port Chilkoot Distillery President, Distillers Guild of Alaska

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CALIFORNIA CALIFORNIA ARTISANAL DISTILLERS GUILD California finally gets to play! In 2015 we had a bill kicked to the curb (AB1233) but the momentum it had garnered led us to start working with several other sectors of the industry on the Craft Distillers Act (AB1295) which was signed into law by Governor Brown in October to become effective January 1, 2016.

COLORADO COLORADO DISTILLERS GUILD The Colorado Distillers Guild held our fall meeting on October 23 in Breckenridge in conjunction with the Breckenridge Craft Spirits Festival. We had a great turnout with a mix of fresh and veteran DSPs in attendance. The first hour was a basic recap of the year including our freshly finished Economic Impact Study, a recap and look forward on legislative issues, a financial update and general guild news. The second hour we

DELAWARE DELAWARE WINERIES ASSOCIATION No guild? What is a craft distillery to do? Certainly, each state in our wonderful country presents its own set of post-prohibition challenges to our growth as a business. However, since craft beverage industry members face similar hurdles, we decided we did not have to go it alone. So, in 2013, Painted Stave Distilling partnered with two

MAINE MAINE DISTILLER’S GUILD 2015 has been a year of tremendous growth for the Maine Distiller’s Guild. The number of distilleries in Maine grew from 8 to 13 in 2015

The result is that craft distilleries that manufacture their spirits in California will be able to apply for a Craft Distiller’s license which will allow them the privilege of limited direct-to-consumer sales in conjunction with tastings on site, among other things. This is huge, and will finally allow California Distilleries to compete on an equal footing with our colleagues nationwide. The majority of the lobbying work was handled by one of our board members Cris Steller of Dry Diggings Distillery, who has worked tirelessly on a direct to consumer bill

in one shape or other for years. We owe him much. Thanks. We continue to work closely with the ABC to help clearly interpret California law and to act as go-between for our members. We are also working on events for 2016 and are thrilled to be welcoming ADI for their conference in San Diego in April 2016. Onwards! Timo Marshall President, CADG Cat Herder, Spirit Works Distillery For more information find us at www.CADSP.org

had a presentation from our friends at Keep heading out on the town for the Poker Run Colorado Local about the upcoming battle that highlighted craft cocktails at bars and to preserve the existing single retail outlet restaurants all over town and had a wonderful system against the push by a handful of out- weekend celebrating Craft Distilled Spirits! The CDG hopes you have a prosperous of-state retailers to put full strength wine and beer in multiple outlets, which could have a OND and a great holiday season! P.T. Wood devastating impact on our local retail partners. Wood’s High Mountain Distillery Lastly our affiliate members were able to President CDG introduce themselves to our members. At the end we enjoyed great food and LAST MINUTE UPDATE We have had distillers being visited by the Colorado Department of Public Health and Environment (CDPHE) on behalf of the FDA and we cocktails from are working with the CDPHE and our legal and legislative teams to determine the our friends at legality and potential extent of these visits and licensing requirements. Modis before

local wineries to start the Delaware Wineries Association (DWA). The mission of our association is to promote the consumption and production of handcrafted wine and distilled spirits in our state. To achieve our mission we coordinate on consumer education, legislative, marketing, and promotional activities. In addition to executing a number of successful cross-promotional events and activities to reach and educate consumers, the DWA won a Specialty Crop Block Grant from the USDA to help promote and market our industry, and played a significant role in forming the Mid-

Atlantic Wine Region. Legislatively the DWA is very active, and recently hosted the Delaware Small Business Caucus to discuss and win support for changes to tourism signage, direct shipping, and farmers’ market laws. Legislation in many of those areas is currently being developed. Presently, the DWA has eight members, including a meadery, and is getting meaningful shit done. Ron Gomes

with more in development for 2016. After the inaugural meeting in December 2014, members joined forces to form a 501(c)(6), elect a guild president, create a logo, work on legislation, attend the NABCA Craft Spirits Symposium, and plan the launch of a Maine Distiller’s Guild public tasting event.

Ian Michaud, of Liquid Riot Bottling Company in Portland, Maine, was elected MDG president in November 2015. Under his leadership marketing plans are being made to create a Maine Distillery Trail pamphlet for Spring 2016 and an annual festival to showcase Maine-made spirits in Fall of 2016.

Painted Stave Distilling hello@paintedstave.com www.dewineries.com

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In ongoing efforts to improve communication between the distillers and BABLO—Maine Liquor Control—Keith Bodine of Sweetgrass Winery & Distillery attended the National Alcohol Beverage Control Association (NABCA) Craft Spirits Symposium with BABLO to discuss the interaction and impact

MASSACHUSETTS MASSACHUSETTS DISTILLERS ALLIANCE The Massachusetts Distillers Alliance has pulled together to collectively raise over $3,000 to support the national effort by the American Craft Spirits Association to bring

MONTANA MONTANA DISTILLERS GUILD The Montana Distillers Guild, after a successful legislative session, has been working over the last six months with the Department of Revenue to finalize details regarding new laws created which allow for direct transportation of product to State Liquor Stores. We anticipate a huge savings in time and money for our small distillers. Montana micro-distilleries are allowed a tasting room as a marketing tool for their product, but are severely limited in the amount

NEW MEXICO NEW MEXICO DISTILLERS GUILD New Mexico Distillers Guild members had a successful fall season with festival participation and political outreach at both the state and federal levels. Four of our five members participated in Brew Fest 6 in early October at the state fairgrounds during the Albuquerque International Balloon Fiesta. We had great exposure for individual members and the Guild, and the response from the beer-driven crowd was very positive, though with so many breweries participating it was

of craft distilleries within control states. The Maine Distiller’s Guild aim is to work with BABLO as one voice in regulation and legislation to accommodate changes that improve business for craft distilling in the state of Maine. Maine distillers are looking forward to 2016.

Maine is known for its foodie tourism with an abundance of quality local food and awardwinning restaurants; Maine spirits are poised to be included in that distinction.

equality to the tax code that overburdens America’s craft distillers. Through matching each other’s donations, collective support, and encouragement, the MDA has pulled together in genuine camaraderie to not only support each other’s businesses, but also to support the nationwide craft distilling community. The goal of this effort is to reduce

distilleries’ Federal Excise Tax rate by 80 percent to match the kind of discount already enjoyed by craft brewers and small wineries but denied to spirit distillers. If anyone can stand up to bring awareness to unfair tax codes, it’s the crew from Massachusetts! Maggie Campbell

Keith and Constance Bodine Sweetgrass Farm Winery & Distillery www.sweetgrasswinery.com

Privateer Rum

of product (2 FULL MEMBER LIST OF MONTANA DISTILLERS GUILD oz.) that can be served to Headframe Glacier Distilling Hardwater Triple Divide Spirits Distilling Spirits a potential Trailhead Spirits Headframe Whistling Andy Dry Hills customer on a The Montana Spirits Distillery Distillery Wild Rye daily basis. This Manufacturing Distilling Whitefish Spirits Rattlesnake is one of the Willie’s Distillery Creek Distillery Bozeman Spirits issues we will be discussing at the recently formed statewide Alcohol Coalition Montana-made products in new and exciting round table attended by taverns, restaurants, ways, and hope to have a new website and breweries, and casinos. We’re hopeful for a marketing campaign well in hand by late spring. Please watch for us! healthy discussion among industry partners. Jennifer L. Hensley As a relatively new association, the Montana Government Affairs Liaison Guild now has room to focus on marketing our

difficult to gauge whether we were a hit or merely a curiosity. This was the first year distilleries, cideries and wineries were invited to participate in any meaningful way. Politically, we enlisted the support of Senator Martin Heinrich, D-NM as a cosponsor of S. 1562, the Craft Beverage Modernization and Tax Reform Act of 2015. At the state level we participated in a summit of craft beverage alcohol producers with the Alcohol & Gaming Division and plans are to attend interim legislative committee meetings to raise awareness of our industry. We are formulating a lobbying strategy to achieve our goals of retail reciprocity so that all NM craft alcohol producers can serve and sell each

other’s’ products in our tasting/tap rooms (presently, only winegrowers and brewers can do so), as well as state excise tax parity. These issues may not be addressed until 2017 given the limited, budget-oriented nature of the 2016 “short” 30 day legislative session which starts in January. The relationships and outreach we do will further those efforts and include a special tasting social for politicians and legislators to be held at Santa Fe Spirits’ tasting room in the state capitol during the upcoming session. Dr. Greg McAllister Algodones Distillery, NMDG Sec’y/Treas. 505.301.9992 greg@algodonesdistillery.com CONTINUED ON NEXT PAGE...

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NORTH CAROLINA DISTILLERS ASSOCIATION OF NORTH CAROLINA The seeds of the North Carolina trade association for craft distillers were sown by a small key group of craft distillery owners in 2011. The organization initially registered with the state in 2013, and gained its 501(c)(6) status and formalized the current organizational bylaws, as the Distillers Association of North Carolina (DANC), this summer. With six functional committees, and 35 participating distilleries, the active group is eager to lead the industry forward in North Carolina. The association was organized to: • Promote the common business and regulatory interests of its members and

OREGON OREGON DISTILLERS GUILD TOAST, our annual craft spirit event, was named Best Spirits Festival by SIP Northwest magazine. This recognition comes as the Guild finalizes plans for the 2016 event. TOAST 2016 will be on February 27th from 4-10 pm and located in Portland at Really Big Video event space. This 7,300 square feet facility is located in the heart of the Pearl District and vendor information can be found

TEXAS TEXAS DISTILLED SPIRITS ASSOCIATION Craft distilling in Texas continues to grow at an impressive pace with over 80 distillers licensed to manufacture spirits in Texas, compared to only two dozen when a group of Texas distillers came together to form the Texas Distilled Spirits Association in 2012. The latest trend for our members is to build “destination” distilleries that serve as venues for events, tastings, and tours for craft spirit enthusiasts. Legislation passed in Texas in 2013 allows distilleries to sell spirits directly

the licensed craft distilling industry in North Carolina • Enhance consumer awareness of North Carolina craft spirits • Develop and guide legislation that promotes the long-term health and growth of the North Carolina craft distilling industry Legislative advocacy has been a significant focus of the association and its membership this year, which has resulted in a recent noteworthy victory, following five years of efforts, spanning three different legislative sessions. Effective October 1, 2015, North Carolina distilleries are now permitted to sell their distilled spirits products to their tour customers. Under the new law, sales are limited to one bottle, per person, per year at each distillery. Another important area of focus for the

association and its membership has been an ongoing partnership with the NC Department of Agriculture, which has resulted in the establishment of the North Carolina Craft Distillers Trail. To date, the new #VisitNCSpirits marketing tool has been promoted with a Collector’s Edition Passport booklet, with a page for each member distillery, as well as, the recent launch of an accompanying Visit NC Spirits app. The association is excited about plans to expand its membership in the coming year, as well as continuing to build on legislative advocacy and marketing efforts to support the growth and success of NC’s craft distilleries.

at oregondistillerytrail.com/vendors. Governor Kate Brown signed HB 2567 into law on June 25th which has expanded Oregon distilleries ability to improve production practices and showcase their spirits. Bulk transfer is now allowed between Oregon distilleries’ and changes have been made to allow mixed samples and cocktails to contain additional product not produced by the distillery. Previously, sample and full cocktails could only contain spirits produced by the distillery. By allowing other spirits to be used in

sampling at tasting rooms, Oregon distillers will have the capability to showcase their product in multi-spirit classic cocktails, which is how many consumers prefer to consume spirits. Looking ahead, the Guild is reviewing legislative options to reduce state tax on spirits for distillers who produce less than 30K pgs on an annual basis. This type of law would be applicable to any distillery that ships products to Oregon. Ted Pappas

to consumers for off-site consumption, which has increased interest in locating and starting new distilleries in Texas due to expanded marketing options for distillers through these new venues. “When I opened my distillery over eight years ago, it was against the law to sample at our facility, and we were not permitted to sell bottles or cocktails,” says Kelly Railean, a founding member of TDSA and Master Distiller & President of Railean Distillers, located in San Leon, TX. Railean cites the recent legislation as a major factor in the substantial growth of her company. “We’ve hired additional workers, our production has increased, and we expanded our facility. We

can now effectively use our tasting room and craft spirits cocktail bar as a marketing tool to reach the general public, and we educate consumers about Texas spirits during our tours and tastings. The additional revenue stream from the bar, tasting room, and gift shop has allowed us to increase our marketing budget for billboards, magazine and newspaper advertisements, tastings, and other events.” Shaun Siems, another TDSA member and President/Head Distiller at Spirit of Texas distillery in Pflugerville, TX, has also seen positive impacts from TDSA’s work at the Texas Capitol. Siems explains how advocacy has impacted his distillery by noting that, “the

S. Vienna Barger Owner, Southern Distilling Company vienna@sodistilling.com Membership Coordinator, DANC distillersassocofnc@gmail.com www.distillersassociationofnc.com

Owner, Big Bottom Distilling, LLC President, Oregon Distillers Guild

CONTINUED ON NEXT PAGE...

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passing of this bill has opened the door for us to create new products that we can testmarket by having them only available for tasting at the distillery before bringing them to the stores. We can host events at our distilleries now, as well as give customers the opportunity to purchase the products that they get to taste onsite.” Daniel Barnes, founder of Treaty Oak Distilling Company, and a founding member and President of TDSA, attributes the legislative changes that TDSA has accomplished over the past few years as having completely changed his business.

WASHINGTON WASHINGTON DISTILLERS GUILD The Washington Distillers Guild (WDG) is using the momentum from the last two hugely successful legislative sessions to lobby for even more privileges for the 110 licensed distilleries in WA State. This session’s efforts focus on unifying the two licenses types (Craft and Distiller/Rectifier) into a single license while still providing incentives to use at least 50% WA grown ingredients in production. The goal is to provide a unified voice for all WA distilleries to the legislature and Liquor board, and allow every distillery the opportunity to receive incentives for using WA grown produce. We also plan to address the outrageously high Spirit Sales Tax—the highest in the country at 20.5%—which consumers currently pay at the

His distillery moved to a new ranch property in Dripping Springs, TX, with a focus on entertaining and education that would not have otherwise been possible without being able to sell cocktails and bottles directly to the public. The changes in Texas law now allow distillers to have one-on-one conversations with customers that would not have been possible previously. According to Barnes, “Craft distilling’s future was protected by these changes and the future is brighter for us all now!” The next legislative session begins in January of 2017 and TDSA is developing its

“wish list” to bring to the Texas Capitol. We’ve made great strides in educating legislators about our industry and the free-market spirit of our state gives us a great opportunity to keep improving the environment for distillers, and ultimately, for our customers. For more information about TDSA, please go to www.texasdistilledspirits.org.

register, on top of an additional $3.7708/liter tax ($2.83/750 ml bottle). In July we had our third annual distillery showcase event titled PROOF 2015, where we had a sold-out event to 859 attendees, featuring 39 distilleries, 14 restaurants, and 9 sponsors. Money raised from that event will help us continue with our legislative agenda and marketing efforts. The WDG also had the opportunity to meet with leadership from the Washington Brewers Guild and the Washington Wine Institute to discuss coordinating some of our efforts to highlight our three WA industries. We’re early in the conversations, but the opportunities look promising. Other projects we’re working on include: • Creating a Washington Distillery Trail • Further developing our new Associate Membership program

• Rebuilding the WDG web site • Continuing to develop educational

Richard Evans Executive Director & Government Affairs Director, Texas Distilled Spirits Association Contact: Jessica Evans (info@texasdistilledspirits.org, 512-771-0439)

seminars with local and federal organizations In 2016 the WDG will present at least two events showcasing WA distilleries, in at least two different parts of the state. More may happen if we increase our staff hours. Our goal is to have every part of the state represented with locally-produced events, to raise money for the guild, and to provide more marketing opportunities for our members. Jason Parker President, WDG www.washingtondistillersguild.org

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A CANDID CONVERSATION ABOUT WASHINGTON DISTILLERS GUILD’S ANNUAL EVENT

PROOF INTRO BY AMBER G. CHRISTENSEN-SMITH

istilling guilds are popping up all over the nation, and they are a welcome sight. They bridge the communication gap between distillery and legislator and work towards increasing market share for the distillers within their territory. The Washington Distillers Guild formed in 2007 and has worked towards supporting the work of distillers in Washington State through marketing, events, and legislative work that supports the growth and interests of spirit producers. Jason Parker of Copperworks Distilling is the guild’s current president and is a long time brewer and distiller. He is a great advocate for Washington distillers and has helped create and mold the guild’s primary fundraising event, PROOF, which is now in its third year. We recently caught up with Jason to learn more about the Washington Distillers Guild and to have a candid conversation about what makes PROOF work, and what doesn’t.

WHAT IS PROOF AND HOW DOES IT BENEFIT THE GUILD IN WASHINGTON STATE?

we ask them to join they say, “Yes, we’d like to be there. We’ve heard great things.” So It’s our flagship event that features Northwest that exposure also brought other suppliers Distilleries primarily in Washington, out of the woodwork—people doing bitters, although some of our Associate Member tinctures, tonics—we knew some of these distillers from Oregon and Idaho attend. It people before, but in this our third year we is an opportunity for consumers to learn had more room and more ideas of what was about new distillers and even go back and out there to include in the event. visit some of their favorite products, as well We originally reached out to the as a fundraiser for the Washington Distillers bartending community in Seattle and have Guild. This is significant because it helps been able to expand that as people know finance our legislative work and marketing us and they know the programming. We are work for all the guild members. able to reach a little bit further into places We keep the table price low so distilleries like California now, and we even had Paul can afford to attend and we allow distilleries Clarke, Executive Editor at Imbibe Magazine, to sell bottles from their tables, which was cocktail enthusiast, blogger, and book author super successful this year. The guild marks at the event with his new book, “The Cocktail up a little on those bottles and that amount Chronicles.” goes to the Washington Distillers Guild’s general coffers. That way the participants HOW IMPORTANT IS PROOF’S EVOLUTION FROM can make some of their money back and CONSUMER EVENT TO HAVING MORE OF AN EDUCATION, SEMINAR, AND BIG REVEAL FEEL? maybe even more than their table fee cost. I think it’s pretty important. If a distillery is We also bring a lot of restaurants in—we had not showing off something new, a consumer 15 restaurants registered this year and there who has seen their products previously may were other vendors represented, as well. just walk by. We can liken this to some of the big brewery festivals where many of WHY WERE THERE MORE NON-SPIRITS TABLES THIS YEAR? the breweries use events to release a new Restaurants see this as a great place to item as it creates a buzz about it. We are partner, and this was the first year that hoping PROOF becomes an event where finding restaurants to join was easier than distilleries can show off or showcase special before. Previously we had to help restaurant products, cocktails, partner with restaurants, owners understand what PROOF is and how and have their new product release right at it would be beneficial for them to attend. PROOF. It’s a great marketing opportunity But we didn’t have a track record then, where hundreds of people see it, and there and now we do. Now when we walk into is media attention there as well. It’s a restaurants, they’ve heard of us and when great bang for your buck, and if you have

something exciting at your table, you’ll have a line there all night.

HOW DID FEEDBACK ON PROOF’S FIRST TWO YEARS GUIDE YOU? First of all, we picked the right partner to help us produce the event. We went into this with the assumption that we’re not experts at media events , so we made the investment in partnering with Varsity Communications, who have a long track record of producing best-of-class consumer events. They pitched to us an excellent idea and we negotiated a price that was compelling to both sides. They were willing to take more of the financial risk and we saw that as a good partnership and a great move for the guild. And in fact, it was a great move, as every year we have made a profit for the guild and for Varsity Communications. Our first year was in a beautiful but undersized venue for the crowds we drew. Secondly, we were selling from a store set up in the corner of the event space, rather than directly from the distillers’ tables. We had simply never thought of selling from the tables. But this year we set up a SQUARE account for the Guild that everyone could log into and we got written approval from the WA Liquor Control Board to sell directly from the tables. We also had a bar the first year and it was not profitable, took a ton of work, and encouraged the wrong type of behavior. We wanted people to “taste,” we didn’t want people to “drink.” The bar, overall, was just a mountain of work and it didn’t really

PROOF 2015 BY THE NUMBERS 859 ATTENDEES 49 DISTILLERIES 14 RESTAURANTS 9 SPONSORS 1 MEDIA PARTNER WWW.ARTISANSPIRITMAG.COM

make money, it actually lost money. More importantly, it gave the wrong message. So we started to do the cocktails at the tables with the restaurants and that totally solved the problems. People could taste the products in the mix, and we got Liquor Board approval to do the mixing right at the tables. Ticket prices haven’t changed much. We did lower the VIP ticket cost and added more benefits to it. I really wanted to get to the mood of what we see at the brewer’s festivals, where we see—after the festival—there’s a huge party where all the brewers get together and smoke cigars and tell stories and share drinks, special recipes. That’s where the networking happens—after the event. We tried an after party event that we actually sold tickets to and it was a failure, wasn’t fun and it was awkward. Not many distillers showed up. This year we brought in a keg of beer for distillers and volunteers to enjoy while we were writing checks to the distilleries for the sales they had made. That accomplished everything by meeting our networking goal where distillers from around the state got to

drink some beer while waiting for their money, packing up, and hanging out. We didn’t know it would solve all the problems at first, but having the beer—as it’s simple to serve and everyone was relaxed—made it great.

HOW DOES PARTNERING WITH AN EVENT PLANNING COMPANY WORK? Varsity uses an online tool that lists tasks that are assigned to different people, which will email you with reminders. Varsity has about 400 tasks (big and small) that they have to do before an event. We do a strategy meeting in the Winter, a kick-off meeting in the Spring, and we start doing all the tasks as early as we can so we are prepared with speakers, rental agreements, insurance, and more far, far in advance. Closer to the event we meet weekly to do things like visit the site, determine what changes need to be made, look at the floor diagram, etc. There’s a lot of work at the end, and I’m working 30-hour weeks at just PROOF in addition to being President with the guild, between checking emails, making sure everything has been paid, and all the rest of the small details.

WHAT ARE THE BENEFITS TO INDIVIDUAL GUILD MEMBERS? It’s important to note, it’s a value that guild members get to participate in PROOF. If you aren’t a guild member, you aren’t invited. So what does that mean for those outside our state? They have to join as associate members, which allows them to present. We’re trying to help distillers make back that membership fee in the first couple of months so the next 10 months end up being free. This, and some of the marketing programs we’re putting in place, we feel provide more than the annual cost of membership, which is currently $200/year. There are a lot of places competing for a distiller’s money, so doing something that works on legislation and marketing makes it easy to decide as it’s only $200 to be a member of the guild.

HOW DO NON-DISTILLER ASSOCIATE MEMBERSHIP AND GUILD SPONSORS WORK? Non-distiller associate members can become a prime sponsor at PROOF. Anyone who would like to benefit from a relationship with distillers—suppliers, lawyers, bankers,

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insurance, business personnel—can become an associate member. These members can get customer lists (distillers, bars/ individuals/restaurants/etc.) and can obtain logo/product info on guild items and are allowed to attend meetings. We borrowed several ideas from the Oregon Distillers Guild and the Washington Brewers Guild. They list their sponsors, but we changed the idea of how to collect sponsors by not limiting the amount in each category, but to just simply have tiers. We only have five sponsors currently, but as we are growing we can hire staff and can now work towards finding more sponsors.

WHAT ARE YOU WORKING ON NOW AS A GUILD? Recently, we met with the executive directors of the Washington Wine Institute and the Seattle Brewer’s Guild who are doing legislative pushes for their segments and we’ve all identified that we are frequently asking for the same thing. The question came up that why don’t we begin to share our stories as a Washington industry as opposed to the segments of the industries. We want to unify our voices and give more strength to

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each other and float all boats.

they couldn’t otherwise be part of. It has to be about ROI—because running a DO YOU SEE INDIVIDUAL STATES BUILDING distillery ultimately comes down to money. ALCOHOL COALITIONS TO UNIFY IN On an annual basis, we ask for dues and PARTICULAR AREAS SOMEDAY? communicate our value with an email that We’re not at the point yet—we are just lists the successful events we have had for starting to talk about banding together. At the year and shows what our future plans some time it could make sense. One of the are, and we dollarize the values of those problems with too much formality is that things. About 50% of our distillers made you also lose your nimbleness. I know we’ve their table fee back in just one event. About all enjoyed being nimble and enjoying the 25% made their table back plus some. We’re focus on our own segments, but when we’re planning to calculate the dollar amount our looking for strength in numbers and strength legislative changes have saved our members in voice we can work to come together for and the marketing investments we’ve made support. For now, we realize it will probably on behalf of our members. be a while before we think it is worth forming A very successful part of our communication one beverage and alcohol industry. is a monthly newsletter we send out to all members informing them of events, training ANY ADVICE FOR GUILDS HAVING opportunities, new legislation and rules, MEMBERSHIP RECRUITMENT PROBLEMS? We think about this all the time. You need legal changes that may affect them, and to provide an ROI that is more valuable than general information that keeps the guild in the cost to join. We strive to make the guild their mind and lets them know something is one of their better marketing investments. happening on their behalf. We do that by getting legislation passed, creating or exposing new channels to For more info on Washington Distillers Guild and market, and providing access to events PROOF visit www.washingtondistillersguild.org or www.proofwashington.org.

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DEVELOPING YOUR RECIPE A

s a distiller, you’re often asked, “How did you come up with your recipes?” There are a lot of answers to these questions, and all of those answers can be correct:

1. Trial and error 2. Experimentation on small batches 3. Outside consultant 4. Reference documents and literature 5. Brains, brawn, a hope and a prayer 6. Reverse engineer your spirit from the testing results via Gas Chromatography (GC) and Mass Spectrometry (GCMS) of spirits that you like…wait, what? As a consummate nerd in Lego, river floating, distillation system design and all things hooch, you can probably guess that I went with Option 6 for one of our product lines. At the American Distilling Institute national convention in 2011, I watched the now defunct Artisan Distilling Program from Michigan State University give the presentation, “A systematic approach to whiskey development” with the results of flavor compounds tracked every minute during a pot still run. Those results were given as GC

»» Determine contributions as a result of mashing, fermentation, and distillation. In other words, what types of grains were used, what yeasts and fermentation regimes yielded the various alcohols present, and how was the still run with respect to low and high volatile alcohols and esters?

»» Determine the contributions as a result of aging. What type

of cooperage, how are esters formed, what flavor compounds expressed by the wood, and how could we influence the maturation phenomena during aging?

Benzoic acid

Vanillin

2-Furancarboxaldehyde, 5-(bydroxymethyl)-

4H-Pyran-4-one, 2,3-dihydro-3,5-dihydroxy-6-

n-Decanoic acid

Octanoic acid ethyl ester, or octanoic acid 2,6-Dimethoxy-phenol Toluene

Trans-3-methyl-4-octanolide Hexadecanoic acid ethyl ester

2-Methyl-phenol Butanedioic acid, hydroxy-, diethyl ester

1.4E+09 1.2E+09 1E+09 800000000 600000000 400000000 200000000 0

Benzene, 1,1’-[methylenebis(oxymethylene)]bis-,

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There were two ways we approached the project:

2-Phenyl-2-propenol

whiskeys, both Irish whiskeys (one aged for 12 years and the other for 11 years), which closely matched the flavor profile I wished to see after 1-2 years of aging. The results are shown to the right. Whiskey isn’t just “ethanol, some fusels, and oak,” it’s a lot more. However, to really get to the crux of its makeup, we needed to have something to assist with understanding the chemical footprint the GCMS had shown us. Note compounds like Phenylethyl alcohol—where did it come from, production or storage (or both)? Time to hit the books.

charts, showing the evolution and consumption of flavor compounds and the points at which those compounds were fully expressed and no longer contributed to the final flavor of the spirit. I had found my nerds. I approached them with the following concept: “Let’s use a GCMS to analyze the constituent compounds in a finished bottle of whiskey and reverse engineer the contributory agents of the parts we like, which would then allow us make a similar whiskey.” Johnny Jeffery, then a member of that group, immediately hoisted his nerd flag and we were off.

Benzaldehyde Decanoic acid ethyl ester Acetic acid Dimethyl sulfoxide Isopropoxycarbamic acid ethyl ester Dodecanoic acid ethyl ester Acetic acid, 2-phenylethyl ester Isoamyl laurate Benzyl alcohol Phenylethyl alcohol Cis-3-methyl-4-octanolide Tetradecanoic acid ethyl ester Cinnamaldehyde

STEP 1: GET SOME WHISKEY AND TEST IT. We analyzed two

WRITTEN BY JOHN MCKEE

STEP 2: READ UP, DUMMY.

There are a lot of great references in academic literature that assist with answering these questions and we leaned heavily on a lot of them, but for brevity’s sake, I’ll limit the discussion to a single example for both approaches of production and storage:

»» Fermented Beverages Production, 2

Edition;

Lea, Andrew G.H., Piggott, John; Springer

»»“Chemical Mechanisms of Whiskey Maturation”; Reazin, George H.; American Journal of Enology and Viticulture; 1981

Fermented Beverage Production, 2nd Edition is a must-have for distillers who want to know what they’re actually doing. There are other tomes, but for a great cross section of the industry and arguably the best document for additionally cited articles in hooch, you can’t beat this book. Specifically we gleaned a lot of information from Chapter 2 – “Production of Flavor Compounds” and Chapter 17 – “Flavor Chemistry.” Both chapters were invaluable starting points to our ability to understand the pathways to the flavors we wanted. Which grains, what fermentation regimes, and which distillation profiles were going to ultimately be successful in our project came from this starting point. Chemical Mechanisms of Whiskey Maturation (George Reazin) is an article with some history to it, updated in 1981, but acts as a good primer on the chemical transformations that take place in a barrel. The overall concept of this paper is that there are two primary reactions taking place during aging in cooperage: extraction and maturation. Extraction is easy—take any 53-gallon barrel of bourbon after four months and it’s about as brown and oaked as it’s going to get. Maturation is a longer process in which ethanol in the presence of oxygen (angel’s share), esters resultant of production, and acetaldehyde, combined with barrel wood resulting in ethyl acetates, caprates, laurates and others. This process takes time unless you science the shit out of it…

So, how did it work out? In the last two years we have put considerable effort into this product and have had some great results. We now have 53-gallon barrels of this style of whiskey which have been ready in as little as 16 months and others that have taken just over two years. Note the conditions—used, full-sized cooperage that is yielding a finished good in 16-24 months! Organoleptic tests show a similar spirit profile to the original spirits against which we initially set out to emulate, and we expect future testing with GC and

more on that in another article, someday. Although the extraction portion of the aging may be finished quickly in the first few months, the maturation rate is bound to the starting ratios of ethanol, esters, and other compounds present when barreling. For instance a barrel might finish more rapidly from a distillation run of a similar wash in September 2009 versus October 2009. Why? One potential reason for this can be differing ratios of those starter compounds expressed through distillation, which resulted in a different time-to-age. Utilizing this information, we were able to set parameters for distillation runs to capture the initial starting compounds in the proper ratios to yield finished goods in the flavor profile we desired.

STEP 3: MAKE SOME AND PROVE IT, GENIUS. We knew from our research and from Reazin’s article that our style of whiskey would need to be aged in used cooperage, specifically used American bourbon cooperage. Meaning that our total flavor compounds expressed via extraction would not be high in comparison to a whiskey aged in new cooperage. Therefore our primary areas of concern would be limited to mash/ferment/distillation regimes that yielded the highest amount of desirable esters as possible, thereby maximizing the potential and time-to-age of the maturation effects. In pursuit of the esters we saw in the GC profile, we knew that although typical whiskey yeast would give us some of the esters we were seeing, it would not give us a full expression of the floral and fruit esters which were also required. After researching secondary yeast profiles, we elected to build a two-stage fermentation regime based first upon whiskey yeast and secondarily upon champagne yeast. In distillation of this style of whiskey, we knew that a second use barrel would not give us enough chemical compounds to influence aging in a short period of time, so we had to run our distillation to ensure that we maintained the ratio of desirable esters and other alcohols required. Using a continuous distillation system, during the run we were able to manipulate the output of the still to match boiling points that we felt would yield the compounds we wanted, in the ratios we felt would be necessary.

GCMS to show similar profiles. So, too much nerd? Maybe. Could we have got there otherwise? Maybe. But like a SCUBA diver, who planned her dive and dove her plan, we held to a starting point and ran the program to produce exactly what we were looking for two years following. Not a, “put it in a barrel and let’s see how it comes out” approach. We wanted to make something specific and we made it by paying attention to the science on the front end and now we can look at our investments and sunk costs as a success.

We’re pretty happy about that. All of the approaches to recipe development have their pros and cons and we’ve been happy enough with this process to use it again in the future. Cheers.

John McKee, along with his wife Courtney, are the owners of Headframe Spirits in Butte, MT. When John isn’t GC-ing the thing he found on the bottom of his shoe, he can be found getting ready for ski season in Montana. For more information email john@headframespirits.com. WWW.ARTISANSPIRITMAG.COM

What’s in it for me? INDUSTRY TRADE GROUPS AND THE VALUE OF TEAMWORK W R I T T EN BY M A RGIE A .S . LE HRM A N, EXECUT I VE DI RECT OR, AMERI CAN CRAF T SPI RI T S ASSOCI AT I ON

hope and expectation hen you were a kid that you would receive an you likely joined one abundance of information group or another. It could to increase your abilities have been the Boy or Girl and perhaps joy in Scouts, 4-H, the football, whatever activity you were baseball, hockey, soccer, pursuing. Businesses join volleyball, or basketball — B E N J A M I N F R A N K L I N trade groups for much the team, or, come on, admit same reason. An obvious it—you belonged to the caveat here—if you only math, computer science, joined because your mom or dad made you do it, read no further! or chemistry club. Right? The reason(s) you joined any one club, First, you want and need to keep on top of changing issues, sport, or organization parallels why you should join an industry trends, and legislation. There is so much happening in the DSP group—whether it is American Craft Spirits Association (ACSA), community, which continues to grow at unprecedented rates. From a state distillers’ guild, the Distilled Spirits Council of the United compliance issues with TTB, to safety issues with stills, to the fight States (DISCUS) or another trade group formed to help you—we to reduce the FET in Congress, to privatization within states, there work better as a team. is a lot of information out there. Trade groups can help you navigate In 1758 our very own Benjamin Franklin—a distinguished polymath the information flow. who is often considered the very first financial planner—counseled, “An investment in knowledge pays the best interest.” Interestingly, Mr. Franklin also helped found the ACSA, DISCUS, state guilds, and other organizations first learned society in America, the continue to fight on your behalf to lower the Federal Excise Tax. As of this writing, American Philosophical Society, a group dedicated to exploring there are several viable bills in Congress to lower that amount from $13.50 to improvements in American society. $2.70 for the first 100,000 proof gallons removed from bond annually. For over 270 years that association has provided knowledge through FOR THE MOST UP-TO-DATE INFORMATION IN THIS LEGISLATIVE BATTLE VISIT research, meetings, publications, and community outreach. In your earlier life when you joined a group, you did so with the

“

An investment in knowledge pays the best interest.”

FEDERAL EXCISE TAX

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IT IS NOT TOO LATE TO ENTER YOUR SPIRITS IN AMERICAN CRAFT SPIRITS ASSOCIATION’S 2016 JUDGING OF AMERICAN CRAFT SPRITS. This year, the competition is produced in affiliation with

Artisan Spirit Magazine. Submit your registration and send your spirits no later than Friday, January 15, 2016 for evaluation and tasting notes by a venerable panel of judges who will convene at Starlight Distillery on January 19 and 20. The judges’ backgrounds are as varied as the spirits that will be tasted. The panels are composed of master blenders, mixologists, academics, authors, wholesalers, and chemists. Their common denominator is their impeccable palate.

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Second, social media like LinkedIn and Facebook can help you connect with other producers and suppliers, and trade groups can help you network more efficiently. They can let you know who is producing in your state, allowing you to reach out to other distillers to share best practices, lobby together at either the state or federal level, and interact to further the business of your distillery. Nicole Austin, Chair of ACSA’s Guild Committee and a part of Kings County Distillery in New York, reports: “State governments have immense power in the success or failure of an industry that is as heavily regulated as ours. Your privilege to manufacture, your access to the market, your opportunities to innovate…in all of these places the state government and state regulatory agency can open doors for you or slam them in your face. The key battlegrounds for our industry’s success will be at the state level. That is WHY you must organize with your state guild.” Third, you like what you do and want to share that passion with other like-minded adventurers. Put another way, join a trade group for the camaraderie. So, think back to those glory days when you were actively engaged in a group dynamic. And, remember that Benjamin Franklin was onto something.

Margie A.S. Lehrman is Executive Director of American Craft Spirits Association. Visit www.americancraftspirits.org for more information on ACSA and to join.

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PRODUCT RECALLS BY MARC E. SORINI

ood safety situations and the closelyrelated question of whether to conduct a recall rank among the most stressful that a distillery decision-maker can face. The safety of your consumers, your short-term sales and the long-term reputation of your distillery and brand hang in the balance. Things move fast and decisions must be made with less-than-perfect information. No preparation will render such situations easy or routine. A distiller can, however, reduce the stress level and help navigate this “worst-case” scenario by understanding the process and taking certain steps to prepare. Of course, careful quality control and good manufacturing practice protocols are every company’s best defense against a potential product safety problem. However, even the best companies cannot prevent every potential hazard, many of which may arise from circumstances (e.g., the purchase of defective bottles) entirely outside the distiller’s control. This outline aims to familiarize you with the recall processes and situations while suggesting areas where preparation can help.

KNOW YOUR TEAM Reacting swiftly and properly to a potential food hazard requires expertise from a number of disciplines.

•

Operations (production and supply) personnel usually are in the best position to identify the potential source and root cause of any issue.

•

Personnel responsible for sales and distribution are needed to identify affected product and, if necessary, organize a recall of product in the market.

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Marc E. Sorini is a partner in the law firm of McDermott Will & Emery LLP, based in the Firm’s Washington D.C. office. He leads the Firm’s Alcohol Regulatory & Distribution Group, where he concentrates his practice on regulatory and litigation issues faced by supplier-tier industry members. His practice for distillers includes distribution agreements, distribution counseling and litigation, product formulation, labeling, promotional compliance, compliance strategy, and federal and state tax and trade practice enforcement defense.

• Communications skills may be needed to ensure that a recall notice reaches its intended audiences swiftly and accurately. •

Legal counsel with product recall experience is needed to advise on the process, legally-required filings, and to handle communications with relevant government bodies. Moreover, involving counsel can help provide certain sensitive communications and studies with the confidentiality protection of the attorney-client privilege and/or attorney work product doctrine. Companies also need expert assistance in identifying and understanding the nature of the risks arising from a given hazard situation. A number of consulting groups with substantial food safety credentials are available to help, and should be retained through counsel to at least partially protect the confidentiality of their work under the attorney work-product doctrine. Finally, but perhaps most importantly, decisions on responding to a potential product safety issue can profoundly impact the future of a company. For this reason, the decision-making circle generally must involve people with the authority to make important decisions. A distiller can help prepare for worstcase scenarios by identifying the members of its team (both internal and external) before a crisis arises. Moreover, holding occasional “drills” with this group will help regularize and organize the crises response team, allowing for a smoother response when an actual issue arises.

GATHERING FACTS TO “BOUND” THE SITUATION When a situation arises, a company must move quickly to protect the public and its

own reputation. At its most general, this starts with gathering relevant information as quickly as possible and being ready to act on the basis of often-incomplete or imperfect information. While every situation is different, a number of facts form the core of what a decision maker needs to know. At the outset, it is important to note that not every reported safety issue is created equal. In my experience virtually every company above a reasonable size experiences a certain amount of “background noise” that theoretically could represent a safety problem. For example, the occasional phone call complaining of feeling bad the day after consumption or chipped bottles may not be cause for particular alarm if protocols are strong, the report remains unsubstantiated (e.g., a supposedly defective bottle is never provided), and the frequency of such reports remains at a low level. But distillers must carefully evaluate communications from consumers so they can separate the reports requiring serious consideration from the “background noise” of day-to-day consumer communications. Where a potentially serious situation DISTILLERS arises (and when in MUST CAREFULLY doubt, EVALUATE treat COMMUNICATIONS FROM a

CONSUMERS SO THEY CAN SEPARATE THE REPORTS REQUIRING SERIOUS CONSIDERATION FROM THE “BACKGROUND NOISE” OF DAY-TO-DAY CONSUMER COMMUNICATIONS. 33

situation as potentially serious), distillers must try to identify and “bound” any potential health or safety hazard. This means understanding, as quickly as possible:

a. The immediate cause of the problem. This is to be distinguished from the “root” cause of the problem, which often takes more time to understand. For example, the immediate cause of a consumer health issue may be the presence of an undisclosed allergen in the spirit, while the “root” cause would look for how the ingredient was selected and how the company overlooked the need to label for that allergen.

b. The start and stop time of the problem. If possible, a distiller should try to identify exactly when a problem (e.g., the addition of the allergen to the spirits, the presence of glass flakes in a bottle) arose and ended. Without confidence about the immediate cause, this may be difficult, making it hard to justify any time or batch parameters on a voluntary recall.

c. Any geographic limit to the problem. If possible, a distiller should try to understand the issue in terms of specifics within its distillery and, for larger companies, which THE distillery location. ABILITY Once again, the ability to isolate TO ISOLATE a problem to A PROBLEM TO a particular A PARTICULAR bottling l i n e , BOTTLING LINE, batch or BATCH OR PLANT plant can CAN NARROW ANY narrow a n y RECALL AND MAKE recall and THE RESOLUTION make the OF A POTENTIAL resolution SAFETY PROBLEM of a potential safety problem FOCUSED AND focused and EFFECTIVE. effective.

d. The problem

scope of the the marketplace.

In a three-tier distribution system, a distiller’s product passes through two independent entities before reaching the consumer. Understanding how far, and wide, affected product has reached is critical to properly responding to a potential product safety issue. Of course, no distiller can anticipate the particular facts and circumstances of any food safety situation in advance. Distillers can, however, ensure that their production control, distribution, and raw materials record-keeping systems and protocols facilitate speedy fact gathering in these situations. Indeed, in some cases simply complying with the letter and spirit of the law will go a long way towards preparing for the worst. The Bioterrorism Preparedness and Response Act of 2002 (the “Bioterrorism Act”), as implemented and enforced by the federal Food & Drug Administration (“FDA”), imposes record-keeping requirements on all “food handlers”—a term that includes packaging, all distillers and even distillery pubs if they sell more than 50% of their spirits outside their premises. To grossly oversimplify, these record-keeping requirements (now elaborated in FDA regulations) require distillers to be able to conduct “one up, one down” tracing of ingredients, packing materials and finished product within 24 hours. In other words, if an issue arises, a distiller should be able to identify within 24 hours the immediate customers (in three-tier distribution, the wholesalers) who received the identified product and the vendors of all the grains, fruits, flavors, yeast, other ingredients, and food-contact packing materials (usually bottles and tops) used to produce the identified product. In my experience, while most companies theoretically can accomplish “one up, one down” tracing quickly, doing so in the real world proves more difficult. As a best practice distillers should consider a drill to test whether their record-keeping systems and personnel can, in fact, quickly accomplish the sort of tracing required by the Bioterrorism Act. If the answer is no, the distiller should implement process

improvements. An even better safeguard is for distilleries to have a HACCP (“Hazard Analysis and Critical Control Points”) plan to identify product risks and systematically plan to reduce those risks in the context of ongoing operations. Under the Food Safety & Modernization Act (“FSMA”), which became law in 2011, most food producers today must implement HACCP planning. While the FSMA exempted companies that produce only TTB-regulated products from this requirement, HACCP planning represents a best practice to help manage hazards and prepare for the worst case.

MAKING A DECISION While every situation is different, distillers rarely have the luxury of time in deciding whether a potential safety issue presents a real risk to consumer health and safety and, if so, what to do about it. As explained later, today certain FDA filing requirements put added pressure on distillers to act very quickly (see below). But even in the absence of this requirement, distillers need to quickly evaluate the facts and then, if necessary, act to protect the public. The need for quick decision-making puts a premium on regular, rapid, practical communications. In my experience, this means promptly establishing a regular schedule of calls—initially daily or even twice daily—so that all members of a distiller’s crisis team can share information and discuss solutions. Moreover, setting a regular call schedule minimizes scheduling time, letting the team concentrate on the substance of the issue. And of course, the team can supplement the regular schedule as needed and can quickly ramp down if, for example, a potential problem proves illusory. A “hazard analysis” is critical to making the decision of how to respond to a reported food safety issue, and in my experience distillers (and their outside lawyer) lack the expertise necessary to act without help from outside experts. While distillers, particularly sophisticated ones, may know a great deal about distilling, rectifying and packaging, they rarely have the credentials (medical,

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food safety, etc.) needed to relate production and packaging problems to potential health outcomes. To take a real-world example, I once was retained for a situation where a brewer had gone into crises mode when a routine quality-control check detected the presence of a bacteria that, based on the laboratory’s Internet research, had potential health consequences. We retained food safety experts, who quickly informed us that while the bacteria in question had been linked to certain health outcomes in theoretical studies, it was present in much higher levels in virtually all fresh fruits, vegetables, and meats, and that any exposure to minor levels in beer would not materially impact consumers’ overall (and massive ongoing) exposure to this particular bacteria. Crises averted. Hiring experts also provides distillers with a critical objective voice if—in a truly worst case scenario—recall decision making is later questioned in a court or administrative proceeding. As noted earlier, distillery personnel (lawyers included) lack scientific and technical backgrounds and their decisions accordingly would be very vulnerable to second-guessing in a lawsuit or agency proceeding. Moreover, outside experts are not employees of the company and accordingly bring more credibility to the table than a person who derives his sole livelihood from the company affected by the recall decision. For these reasons, I advise all my clients in recall situations to quickly retain through counsel (to minimize unwanted disclosures) experienced food safety experts to provide a hazard analysis to assist in making a recall decision. The distillery’s crises team must do the best it can and, if the facts point to a real threat to the health and safety of consumers, move forward with a recall as quickly as possible.

MEET THE REGULATORS A decision to recall product involves a close interaction with government food safety bodies. But many in the industry are afflicted by two pervasive misconceptions about this aspect of product hazard

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situations. The first misconception is that recalls are government-mandated. In fact, until very recently federal regulators had little authority to order product recalls. For many years, both FDA and TTB had the statutory authority to seize specific lots of products in certain circumstances. But this limited (and today, often impractical) power fell far short of the oft-presumed ability to order product recalls. Historically, then, FDA and TTB could merely “recommend” that a company conduct a recall. In 2011 the FSMA gave FDA the power, for the first time, to order product recalls after giving notice and an opportunity for a food producer to dispute the need for a recall. For TTB-regulated products, the FSMA requires FDA to consult with TTB before ordering a recall. In the real world, however, this recall authority has little practical effect. Few food producers faced with an FDA and/or TTB recommendation that a recall is necessary would likely dispute it and, in fact, most will initiate a voluntary recall before the government acts to protect its reputation and minimize products liability exposure. Indeed, it is hard to imagine any company enduring the reputational and legal risks inherent in ignoring a government suggestion to conduct a recall. In short, while most recalls are “voluntary,” potential legal consequences often compel the conclusion to conduct a recall. To take one example, a distilled spirit with a dangerous chemical contamination would be considered “adulterated” within the meaning of the Federal Food, Drug and Cosmetics Act. TTB would consider the continued sale of such an adulterated product as a willful violation of federal law, subjecting a seller’s federal permits to suspension or revocation. Moreover, the potential liability to consumers harmed by your product—already considerable in all circumstances—would increase exponentially were evidence to reveal that a distiller knew of a hazard but did nothing to protect the public. So, while food and beverage recalls are almost always “voluntary” in that the government does not order them, the logic of the law usually

compels a recall decision. A second pervasive misconception involves the agency with primary authority to monitor and evaluate the recall of TTB-regulated products. Most assume— presumably based on everyday experience with food recalls—that FDA takes the lead. In fact, under a 1987 Memorandum of Understanding (“MOU”) between FDA and TTB (it was ATF at the time), TTB takes the lead in monitoring and evaluating recalls of TTB-regulated products, with the FDA playing a consulting role. Thus, distillers should direct their recall communications to TTB, although my practice is to also place a “courtesy call” to FDA informing that agency of the recall and of the fact that the company already is working with TTB on the situation. At one time TTB seemed to know little about DO handling recalls, but NOT LET today the agency has a much greater REPORTING understanding of TO TTB GET IN recall issues and THE WAY OF A protocols. Ideally TTB will have the FAST-MOVING resources to review RECALL and comment on SITUATION. your draft recall press release (more on that below). In all events, keep TTB apprised of your recall steps and the relative success of those efforts. But do not let reporting to TTB get in the way of a fastmoving recall situation. In my experience, critical facts like case counts, distribution area and retailers contacted will shift over the course of a recall due to the inevitable vagaries of the process and market. Industry members should not put critical facts in writing too soon, only to face the prospect of retracting those facts as new data emerges and mistakes get corrected. In addition to the federal government, some state regulators, notably in California, may become involved in recall situations. In my experience, attempting to contact state regulators in every impacted state rarely presents a practical option in a process that requires speed to protect the consuming public. But the California Department of

Public Safety merits a call (if the recall touches on California), as they monitor media concerning recalls and demand inclusion in recalls affecting their state.

RECALL CLASSES For alcohol beverage recalls, TTB classifies them in a manner consistent with FDA—into Class 1, 2 and 3. A Class 3 recall involves no threat to health or safety, and usually involves erroneous labeling (e.g., labeling a spirit with the wrong bottler information). Such situations generally do not warrant more than a halt to continued sales of the affected product, although materially misleading statements raise other considerations. Indeed, under TTB’s well-established (but not codified in its regulations) “use up” policies, the agency often permits the temporary and limited sale of mislabeled product to avoid market interruptions and allow a supplier to “use up” its stock of mislabeled goods. When we think of recalls, then, we generally have in mind Class 1 and Class 2 recalls. A Class 1 situation arises where the potential safety issues create a substantial threat of death or serious health consequences. These often arise from problems with the food or beverage itself—for example by the presence of a THE dangerous pathogen. CLASS 1 But certain labeling RECALL issues might also create situations INVOLVES worthy of a Class PRESS 1 recall. If, RELEASES THAT for example, MAY CAUSE SHORT- a well-made distilled TERM DAMAGE s p i r i t TO A BRAND’S including IMAGE, ALTHOUGH peanuts does not NOT NEARLY AS disclose the DAMAGING AS A presence of SITUATION WHERE that serious allergen, A PRODUCT the threat CAUSES ACTUAL of an unwary CONSUMER consumer going

HARM.

into anaphylactic shock after consuming the spirit may warrant a Class 1 recall. (Ironically, however, while FDA regulations today mandate the label disclosure of the “big eight” allergens, TTB regulations only address the voluntary label disclosure of such allergens.) In a Class 1 recall, the producer should recall products under its control, in the trade (i.e., at wholesale and retail), and warn the public about consuming the product. Thus, the Class 1 recall involves press releases that may cause short-term damage to a brand’s image, although not nearly as damaging as a situation where a product causes actual consumer harm. Significantly, identifying a situation as falling within Class 1 triggers a requirement to notify FDA of the potential hazard through FDA’s “Reportable Food Registry.” While the filing of a Reportable Food Registry (“RFR”) notice is relatively straightforward, the decision to report is not. First, the RFR purports to require persons to file a notice within 24 hours of learning of a situation that potentially could lead to death or serious bodily harm. In the real world it is often extremely difficult to correctly identify whether a report or situation is “real” or phantom. Distillers simply must do the best they can based on limited information. Second, an RFR report can have significant consequences. Most notably, these notices are subject to public disclosure, raising the specter of potential claims years later by persons who consumed your product and then try to attribute some malady (however generalized or common) to an incident reported to FDA. A Class 2 recall is recommended where the product presents a health and safety hazard, but not one likely to result in death or serious harm. The classic example in the alcohol beverage industry involves defective bottles that result in small bits of glass present in bottles. These bits of glass can cause lacerations and, in rare circumstances, even some intestinal injury. They will not, however, likely result in any life-threatening injury. Under FDA’s guidance towards voluntary recalls, in a Class 2 situation a producer should attempt to pull back all affected

products in the trade, but can shop short of a notice or press release to the public. In practice, however, few producers actually recall product without attempting to pull back product from the hands of the public. The risk of injuring your consumers and the potential liability that would arise if a producer knew of a defect yet failed to act are simply too great.

THE MECHANICS OF A RECALL Upon declaring a recall, the focus of a sales and distribution organization shifts from pushing product out to pulling some subset of products (or all in a truly worstcase scenario) back from the trade. This presents a daunting task. In undertaking the task, distillers must establish a process to systematically contact wholesalers and retailers to identify affected product and have that product destroyed, returned or remediated. In my experience, wholesalers have a key role to play, but over-reliance on your wholesalers is a mistake. Wholesalers have many priorities (from their many other suppliers) to distract them from the task at hand. Moreover, the cold reality is that the risks of both damaged reputation and liability for harm caused to consumers falls squarely on the shoulder of the distiller, not the wholesaler. Your sales force and logistics people need to take ownership of the problem, manage it, and get product back as quickly as possible. Careful tracking is also essential. A critical component of a successful recall is tracking returned/remediated product, calculating how much product was returned, and ensuring that every wholesaler and retailer that received the product has pulled the product back or taken other needed remedial measures (e.g., relabeling). Without an accurate and systematic means of tracking calls and visits made and products returned (or otherwise remediated), a distiller simply has no credible means to substantiate the success of a recall. Distillers must apply the same systematic approach to public relations efforts aimed at alerting the public to potential dangers.

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This starts with crafting a factual and well-thought-out press release. Leave the market-speak aside; this press release needs to truthfully and accurately inform the public about certain critical facts: (a) the identity of affected product and how to identify that product from similar ones; (b) where that product was distributed (esp. if localized); (c) a brief description of the danger posed; and (d) what to do if they have affected product. Ideally, you can ask TTB to review the release, although given the need to move quickly you often will not receive a response from TTB before the release must go public. Finally, resist the temptation to play doctor—distillers have no business giving people medical advice beyond the simple admonition that “if you believe you have consumed affected product, contact your physician.” After issuing a press release, distillers need to mobilize their marketing and public relations resources to evaluate the success of various marketing efforts. In the case of a recall, then, distillers should employ means designed to get the word out and warn at-risk consumers. These efforts should include warnings on company websites, disseminating a recall notice to relevant national and regional media outlets, alerting persons with publicoutreach roles (e.g., phone operators, blog monitors) about the facts of the recall, and tracking the number of hits and media stories generated by those efforts. Perhaps most importantly, a distiller also should monitor reports of adverse health effects based on information from its trade partners (wholesalers and retailers),

consumers (through phone calls, emails, social media contacts and the like) and government authorities. Hopefully no adverse health consequences arise. In the event that they do, however, distillers must treat such reports seriously and systematically, protecting both the public health and the distillery from potentially spurious claims.

EVALUATING RECALL EFFECTIVENESS All things, even recalls, eventually end. The point that this occurs varies based on a host of factors. Stated most generally, however, the process of a recall can end once a distiller feels satisfied that it has:

• Isolated and addressed (either through return, destruction or remediation) all affected product in its control.

• Identified

and contacted all downstream customers of a product and received reasonable assurances that those parties, too, have destroyed, returned or remediated the product in their possession.

• Ensured that any recall message (always in a Class 1 situation, but generally also done in a Class 2 situation) was presented to relevant media (and, with luck, carried, although a distiller simply cannot force the media to do anything).

• Identified the “root cause” of a problem and taken steps to eliminate (or at least minimize) the chances of the problem occurring again.

• Either heard from any impacted consumers or feel reasonably confident that most product that reached consumers either has been returned or, based on product usage patterns, been consumed. Once a distiller feels confident that a recall has run its course, it can return to normal, comforted by the knowledge that it used its best efforts to protect the public. Regulators, too, want to know that a recall has reached its close and evaluate its effectiveness. Thus, once a recall has reached its end, TTB will request that a distiller report to it on the recall, in writing. In my experience, this involves a letter that includes a full catalogue of the distiller’s recall efforts, an identification of the hazard present, a description of the root cause and the steps taken to prevent a recurrence, and an evaluation of the recall’s effectiveness in terms of customers contacted, reported health incidents, product recovered and the like.

.....

Few situations put more stress on a distillery official than a potential product safety situation. Even the most thorough preparation cannot change that reality. But by understanding the process and taking certain steps to prepare for the “worst case,” distillers can manage the process and avoid serious mistakes that could have even more serious consequences. Marc E. Sorini is a partner in the law firm of McDermott Will & Emery LLP. Nothing in this article should be construed as or used as a substitute for legal advice. For more info visit www.mwe. com/Marc-E-Sorini or call (202) 756-8284.

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CONGENER CONUNDRUM the

W R I T T E N B Y L U I S AYA L A

hen attempting to differentiate distillates, producers and brand owners often refer to the equipment they own and operate as if the mere mention of the distillation apparatus could quantify the quality of the resulting spirit. This approach is the equivalent of suggesting that the brand of car a person owns dictates the manner in which that person drives. Authentic craft distillers will be quick to suggest that their spirits are distilled using pot stills, criticizing the “industrial” and “mass production” spirits from continuous distillation columns as being the archenemy of flavor and quality. By the same token, large distillers will use continuous distillation columns because they allow for consistent, around the clock, cost-effective production of alcohol. So far both camps have their advantages and disadvantages, so what about quality? Quality is all about congener diversity and quantity. Let me elaborate: Congeners are formed during fermentation, hence their name, which in Latin means “similar” or “related” but can also mean “born at the same time.” Pot stills and column stills differ in how those congeners are concentrated and separated. To say that only pot stills can produce heavy alcohol and that continuous columns can only produce light alcohol is as erroneous as suggesting that a minivan can’t go over 70 miles per hour or that a sports car can’t drive through a school zone without putting children’s lives at risk. The biggest source of confusion stems from the fact that a lot of the literature about distillation fails to treat congeners with granularity, lumping them together as WWW.ARTISANSPIRITMAG.COM

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produce an agricole-style rum (“rhum”), one should select a yeast that produces a high quantity of congeners. A “heavy” rum can be defined as one But even a yeast that is perfectly suited having at least 250 mg of congeners per for vodka production (low congener) can 100 ml of AA (absolute alcohol, or alcohol produce a large quantity of higher alcohols, at 200-Proof). We could have a rum that especially amyl alcohol (pentanol) if it lacks meets this criteria, where most of the certain key nutrients during fermentation. congeners are in the heads (light aldehydes In the world of rum, for example, it is known and light esters), resulting in something that a lack of Nitrogen during fermentation quite fruity and mixable. We could also have will result in higher production of fusel a rum where most of the congeners are in oils. In the old days, people would add the tails (heavy alcohols, heavy aldehydes urea (CH4N2O) as a source of Nitrogen, and heavy esters), resulting in something until it was discovered that doing so oily, diesel-like, mostly unpleasant. would result in the production of ethyl Why such variation in results? Aren’t all carbamate, which is a known carcinogen. congeners the same? The answer to this Rum distillers today use other salts as a last question, as you may have guessed, is source of Nitrogen, such as Diammonium no, they are not all the same. Phosphate ((NH4)2HPO4). To understand why, we must first take Ethanol is, by volume, the most abundant a couple of steps back and look at the alcohol formed during the fermentation of chemistry of alcohols and at the metabolic potable alcoholic beverages. Other alcohols pathways leading to their initial creation. include methanol, butanol, propanol and pentanol. Each of these alcohols can, The goal of fermentation is to produce through oxidation, produce a different as much usable alcohol as possible. aldehyde. Each aldehyde, in turn, oxidizes The goal of distillation is to concentrate into a different acid and finally, each acid ETHYL ACETATE that alcohol while separating it into its (C H O2) 4 8reacts with each alcohol in the distillate to desirable and non-desirable components. produce a different ester. Yeasts are selected (or should be) In a distillate that is 100% pure ethanol based on how efficiently they can get the (C2H6O), the only aldehyde we’ll obtain ETHANOL ACETALDEHYDE ACETIC ACID job done, given the and (C H O) (C2environmental H6O) (C2H4O2) is acetaldehyde its oxidation 2 4 through physical conditions at the distillery. (C2H4O), which in turn oxidizes into When the goal is to produce vodka, acetic acid (C2H4O2) which, when for example, one should select reacting with the starting ETHYL ACETATE a yeast that creates a low (C4H8O2) ethanol gives us the quantity of congeners. ester ethyl acetate By the same token, (C4H8O2). when the ETHANOL ACETALDEHYDE ACETIC ACID goal is to an “all or nothing” proposition. Here is an example:

» »

→

(C2H6O)

ETHYL FORMATE (C3H6O2)

→

(C2H4O)

→

(C2H4O2)

METHYL ACETATE (C3H6O2)

In other words, one alcohol can give us only one aldehyde, one acid fruitier, less fuel-like and altogether more enjoyable. and one ester. One of the best ways to ensure that a spirit has a wide range and ETHYL ACETATE quantity of congeners (assuming we took the time to create them How many esters would we obtain from the oxidation of two (C4H8O2) during fermentation) is to lower the target ABV of the condensate alcohols, for example ethanol and methanol? Well, let’s see: coming out of the still. Conversely, increasing the target ABV of the methanol (CH4O) oxidizes into formaldehyde (CH2O), formaldehyde distillation is a great way to rectify and separate congeners. For oxidizes into formic acid (CH2O2) and formic acid reacts with example, a vodka stillACID (used as designed) will not result in a high ETHANOL ACETIC ethanol to give us ethyl formate (C3H6O2) and with methanolACETALDEHYDE to give (C2H6O) (C2H4O) volume of congeners, (C2H4O2) which is perfect for vodka. Using the same us methyl formate (C2H4O2). By the same token, the acetic acid still with a fermented molasses wash will, not surprisingly, reacts with ethanol to give us ethyl acetate (C4H8O2) and produce a very neutral rum. In this case, the vodka with methanol to give us methyl acetate (C3H6O2). As still will produce a less flavorful, lighter distillate ETHYL ACETATE you can see, 2 alcohols can give us 4 esters, so 3 (C4H8O2) than that obtained from running the same alcohols will give us 9 esters and 15 alcohols wash through a stripping column. So, are can give us 225 esters! pot stills guaranteed to give us rich, Since ethanol exists in larger congener-laden alcohols? No. Is volumes than the other ETHANOL ACETALDEHYDE ACETIC ACID (C2H6O) (C2H4O) (C2H4O2) the alcohol obtained from alcohols, most of the esters continuous distillation formed (by volume) columns always will be associated to METHYL ACETATE ETHYL FORMATE (C3H6O2) (C3H6O2) going to be light/ it (i.e. ethyl acetate, neutral? Once again, ethyl formate, ethyl the answer is no. In both butanoate, etc.). FORMALDEHYDE FORMIC ACID METHANOL (CH2O) (CH2O2) (CH4O) cases, it comes down to how The above example illustrates the equipment is used, or how the how alcohol diversity results in car is driven, returning to our starting congener diversity. Aging pure vodka in analogy. a barrel will result in alcohol with some oak So next time you attempt to describe your METHYL FORMATE extractives and primarily acetaldehyde, acetic (C2H4O2) distillate, think about what exactly is going into acid and ethyl acetate. Not bad if the goal is flavor and coming out of the still, rather than focusing on the simplicity, but a mistake if one is expecting rich, complex shape or the brand name of the equipment. Focus more on spirits like Bourbon, “heavy” rum or aged Cachaça. the fermentation, so you can explain to your consumers that the Congener planning should be approached with great care. If magic of the product they are about to sip starts with little yeast the goal is to have a fresh, un-aged spirit ready for consumers cells, hand-selected for the alcohols they produce, and how this to enjoy right after distillation, then higher alcohols (butanol, fits with your aging plan, so at the end, the product in your bottle propanol and pentanol) should be kept to a minimum, because can reach its fullest potential. Even more important, make sure of their oily character, which can be overpowering. If, on the other that you are not wasting time and money producing an excessive hand, the distillate is to be aged, allowing for the alcohols to amount of alcohols only to get rid of them later as part of the heads transform into aldehydes, to acidify and then to esterify, then the or tails cuts. amount of tails can be substantially higher. The higher alcohols will develop butanoates, propanoates and pentanoates, with each of Luis Ayala is Editor of “Got Rum?” Magazine and Founder of The Rum the alcohols in the barrel transforming the product into something University. Visit www.gotrum.com or email luis@gotrum.com for more info.

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BRAND BUZZ

THE 80/20 RULE FOR SPIRITS BRANDING

WRITTEN BY

DAVID SCHUEMANN

Why consumers purchase packaging over product...

ne of the keys to creating successful spirits brands is exceptional packaging. By exceptional, I mean packaging that breaks through the ever-growing crowd of offerings with design that engages consumers on a personal level and compels them to purchase your product over the competition’s. There is no question about it: visually appealing packaging piques our interest, invites trial, and assists our recall of a brand we’ve tried. New research even suggests that packaging informs our quality perception of a product before, during, and after we’ve consumed it.

VISUALLY APPEALING PACKAGING PIQUES OUR INTEREST, INVITES TRIAL, AND ASSISTS OUR RECALL OF A BRAND WE’VE TRIED. If you are skeptical, consider your own experience in a different category. We’ve all been at a restaurant before, trying to decide what to order—you peruse the menu, listen to the waiter describe the specials of the day and then suddenly, your eye catches something amazing passing by on a plate. You weren’t able to taste the food, or perhaps even smell it, but it looked so incredible you chose to order it over your initial selection and the recommendation made by the waiter! Why? The reason is our sense of sight plays a huge role in how our other senses react to things in our environment. In some cases, sight can even override our other senses. Like it or not, we can’t help but judge a book by its cover. Not surprisingly, the same is true of spirits brands. Whether on shelf, photographed on a website, or sitting on a back bar, the look of a product’s packaging plays a large role in our selection process. It informs our quality perception of the product, gives us hints as to how it might taste, communicates the WWW.ARTISANSPIRITMAG.COM

price we would expect to pay, and ultimately determines whether we are willing to give it a try over something else. With literally thousands of choices at retail and on back bars to choose from, consumers are faced with a daunting task when selecting a brand for purchase. Simply having a high quality product is no longer good enough to gain a competitive advantage. Product awards, recommendations from trusted sources, advertising and other influences come into play, but these often occur away from the point of purchase and carry little weight when the consumer is making their decision at a store or bar. This truth is what I like to refer to as The 80/20 Rule:

EIGHTY PERCENT OF WHAT A PROSPECTIVE CONSUMER IS USING TO MAKE THEIR PURCHASE DECISION LIES WITH THE VISUAL APPEARANCE OF THE PRODUCT AND ITS RESPECTIVE PACKAGING. Because consumers can’t usually test a product at the point of purchase, they ultimately base their purchase decision on the packaging more than the product product taste and quality, that remaining 20 percent. However, simply standing out by being the loudest, brightest package on the shelf is not the solution. Instead, packaging that appeals to prospective consumers with the following strategies stands a much better chance of success.

STRATEGIC PACKAGING SHOULD:

.CLEARLY COMMUNICATE THE APPROPRIATE ATTRIBUTES OF YOUR PRODUCT’S TASTE, QUALITY LEVEL AND PRICE POINT.

Even value brands will benefit from packaging that positions them as a more premium choice than the competition. Packaging your brand so that it clearly communicates flavor

profiles through color, textures and clear, easy to read communication is the cost of entry for any brand, yet many brands fall short. Often times, brand owners either get too tricky or don’t communicate their attributes clearly enough to be read from across the bar where consumers are making their choices. Another example I see in the market are high quality spirits priced at a premium that are packaged in a way that appears cheap or banal in comparison to the competition. In this case, the visual cues are incongruous with the quality of the product and will more than likely compel the consumer to purchase a competitor who fulfills their quality promise more effectively with their packaging.

.APPEAL TO THE TARGET CONSUMERS’ AESTHETIC TASTES.

It’s crucial for distillers to understand their target consumers’ aesthetic tastes. Are they traditionalists who seek packaging that is classic, rich and luxurious? Or are they young hipsters seeking brands that break from traditional color cues and the paradigm of the category?

.IDENTIFY WITH YOUR CONSUMERS’ LIFESTYLES AND INTERESTS.

One way to align your brand with consumers is to appeal to their lifestyles and interests. This can be done by playing off regional pride (the hometown distillery), or by incorporating visual associations with pastimes, interests, or occasions. Consider what your consumers are attracted to and what they’re purchasing in other categories. Often there are themes, colors, design styles or sensibilities that you can leverage successfully in your packaging to better identify with your consumers’ aesthetics.

Brand owners that do these three things well position their brand in the consumer’s realm of consideration and increase their trial and repeat purchase rates. Consider what your package is saying to your consumers and you will be ahead of the competition. David Schuemann is the Owner and Creative Director of CF Napa Brand Design. For more information, visit www.cfnapa.com or call (707) 265-1891.

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3 HOWLS

DISTILLERY W R I T T E N BY AMBE R G. CH RIS T E N S E N -SM ITH

THE URBAN ROUTE A raw, untouched canvas can be a delightful thing. Each time they begin a new work, artists are excited by the newness of the project and the blank slate that sits before them. Often, they are unsure what direction they will take, but the joy of diving in and not having any inhibitions holding them back, makes it a risky and enticing prospect. Will Maschmeier, founder of 3 Howls Distilling in Seattle, Washington, is a distiller that began with one of these blank slates.

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PHO TO G R APHY B Y AM AND A JO Y CHR ISTENS EN

His story is not of ancestors, age-old recipes, or historical buildings previously used for spirit making. In fact, he had no experience or history with distilling at all prior to his founding of 3 Howls. “I try to market us as an independent distillery that hand crafts products,” says Maschmeier. Instead of relying on a storyline about lineage, he truly believes in focusing on quality of products and marketing. Maschmeier and his co-founder, Craig Phalen, have dove into distilling spirits—blank canvas and all—and are finding joy and success regardless of their backgrounds. WWW.ARTISANSPIRITMAG.COM

A DIFFERENT WALK Not only does Maschmeier take a route that avoids lore in his business, he also has stepped away from the craft distilling license in Washington. In his research, Maschmeier found that rather than applying for a craft distilling license in Washington, he decided to apply for a full distilling license. While the 3 Howls group is not currently producing amounts above and beyond what a typical craft distiller releases, they found it was necessary to use a non-craft distilling license as their state limits the types of materials that can be used by craft distillers. Maschmeier—because of his father’s Central American roots and interest in the flavorful styles of rum found in those areas—had a great desire to make a non-standard rum (according to North American definitions), which limited what he would be able to produce with only a craft-distilling license. Initially, 3 Howls visited other distilleries to learn about starting their own business. Maschmeier was greatly interested in Corsair Distillery’s (Nashville, TN) business model and craft spirit ideas. So he decided to model his business after Corsair in the beginning, and—in talking to the founders there—discussed how it was best to use the non-craft distilling license for 3 Howls in order to meet their distilling goals. The license fee is drastically different ($2,000 compared to $200), but Maschmeier has found that the benefits far outweigh the cost. Not only can 3 Howls produce rum by going this route, they can source more affordable materials for production. Maschmeier adds, “At the end of the day it more than makes up for the cost difference of the licenses. I can also sell as much product as I want out of the tasting room…craft distillers are limited to quantities of liquor per person that they can sell per day.” “When you’re going the craft route, you have to purchase from a farmer in Washington if you want to do anything,” Maschmeier notes. “Also, I noticed around harvest time the farmers stopped sending grains to [a distillery I trained at] because the orders weren’t big enough for it to be worth it to the farmer, and the farmer was busy harvesting. So there were a good couple weeks where the employees were sitting around playing card games instead of fermenting.” Not only was the lack of available materials a potential burden, but it would have impeded his ability to run a lean business due to the wait time on craft-distilling materials, making his choice to use a non-craft distilling license a no-brainer. “Ultimately my goal in terms of my raw materials is finding the least expensive best quality products I can,” shares Maschmeier. Currently, he is purchasing all materials through the Great Western Malting Company out of Vancouver, Washington. He has learned to minimize his inventory on hand, and to process items efficiently in order to stay effective, productive, and prosperous.

GOING MY WAY? Maschmeier finds it is important to make high quality spirits, but to also consider offering competitive products in an open marketplace. He shares his feelings that some distillers are “so wrapped up in their product that they are not paying attention to marketing and how to efficiently manufacture their products in order WWW.ARTISANSPIRITMAG.COM

to get their price point down and in order to be more competitive with national brands.” 3 Howls—located near Safeco Field—is also finding a lot of business during game days, particularly Seahawks games. They get great exposure from tailgaters, which in turn helps spread word of their product. Additionally, he has formed a great relationship with the retail chain Total Wine & More. He approached the business to help with distribution and Total Wine has become 3 Howls’s national distributor, while KBI Craft handles Washington state. Maschmeier finds smaller liquor stores cannot support small distillers as well due to cost, but larger retailers—like Total Wine— can fill that gap. Maschmeier shares, “Total Wine stores have the shelf space to put our products out to see if they are competitive or not.”

Because of this, 3 Howls has been in Total wine since they opened their first location in Washington state. At first they were only locally sold, but now they are nationally distributed thanks to the distribution model run by Total Wine. Maschmeier doesn’t have to dump a ton into marketing because of this distribution and he can focus on more affordable marketing techniques such as reviews by bloggers, events, and greeting customers personally. Maschmeier says, “I literally travel to as many places as I can for meet and greets.” He stresses it is important to meet consumers, build a relationship with them, and to thank them for their support.

TIME FOR CHANGE 3 Howls questions the Washington guidelines in defining craft

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distilling. Maschmeier would like to see some changes, such as instead of having two separate licenses, convert over to one distilling license: “Instead of all this duality, I think it would be better to collapse the license down into one license. I’m more of a fan of using a certification to highlight where your grain is grown than doing it through government regulations. Setting up a “grown in WA” certification is something the Washington State Distillers Guild could easily take the lead on. They’d be able to do it in a way that’s trustworthy and of minimal costs to business. As a distiller I don’t like having to stick to what the state says I can and cannot distill. I’d rather be able to do what I think is right for the business and what I want to do.”

YOUR MOVE 3 Howls is finding that they are growing fast, but they know it is important to pull back the reins and let the business develop a bit before paying themselves: “We’re growing pretty quickly since we opened up, so anything we make has to go back into the business in order to support that growth.” Maschmeier continues, “I don’t want to do anything to hinder that growth, because I

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“

It’s a privilege, to be honest, to just be able to make liquor for a living. If you don’t love what you’re doing and the motivation is a financial one, then I don’t think the motivation will be there to

want to get as big as we can be before we start plateauing off and pulling money out to pay ourselves a salary.” Maschmeier advises that it is important to sacrifice to get your cash flow going (he had to sell his home) and to think strategically when setting prices. He cautions people not to set their prices too high or too low when selecting a price point: “We set our price with a long term strategy…we haven’t increased our prices since we opened up.” Overall, Maschmeier and the folks at 3 Howls are loving their business and want other distillers to feel the same: “It’s a privilege, to be honest, to just be able to make liquor for a living. If you don’t love what you’re doing and the motivation is a financial one, then I don’t think the motivation will be there to keep you going. I don’t think it matters what you do in this industry as long as you’re honest about what you’re doing. Give consumers an alternative to the national brands and a flavor profile that those consumers really enjoy.”

keep you going.” — WILL MASCHMEIER

3 Howls Distillery is located in Seattle, WA. For more info, visit www.3howls.com or call (206) 747-8400.

DRY MILLING

F O R D I S T I L L E R Y O P E R AT I O N S WRITTEN BY ERIC MARCOTTE

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P H O T O S P R O V I D E D B Y S T E D M A N M A C H I N E RY C O M PA N Y

he Old Bushmills Distillery in Northern Ireland is the oldest licensed whiskey distillery in the world, with its license issued in 1608. So what has changed over time? In a word—efficiency. The steps necessary to convert raw grains into the myriad of beverages millions enjoy today remain largely the same. However, the processes have been refined and streamlined leading to considerably more efficiency.

MILLING

TYPES OF MILLING MACHINES

Let’s take stock of the steps to produce some of these products beginning with milling. Milling breaks up cereal grains so that water can penetrate and facilitate the cooking process. Grinding grains is the process of increasing surface area. More surface area gives water and enzymes a better opportunity to penetrate the grain. By grinding the grain, you not only create many more particles that are smaller and more accessible, you actually increase the surface area of that grain exponentially. The optimal size of the ground material varies according to the distiller, but the science behind the opinions includes making particles so fine that they allow maximum access for hydrolysis of starch. Another school of thought proposes larger particles are the way to go for better yield. Whether fine or coarse, the idea is to expose the starch to water in a way that won’t cause handling problems. If the mash is too hard to dewater then the distiller may lose liquid containing alcohol, decreasing yield. Particle size distribution analysis of the meal should be done on a regular basis. When the distribution falls outside specifications, the mill should be adjusted.

Grinding of corn, rye and malted barley in distilled liquor production calls for equipment performance typically required in food plants. The grain must not be overheated in the grinding process, as this could affect the final product flavor. The ground grain must also be uniform, relatively coarse and contain as little flour, or dust, as possible to prevent handling and dewatering problems. Generally a hammer mill is used for corn, wheat and rye, a roller mill for malted barley, and a cage mill can be used for all four.

HAMMER MILLS Hammer mills use rectangular pieces of hardened steel attached to a shaft rotating at a high speed inside the milling chamber. The rotating “hammers” accelerate the grain into breaker plates lining the housing of the mill. Next, the grain encounters a changeable screen with a “close tolerance” gap between it and the rotating hammers. WWW.ARTISANSPIRITMAG.COM

A unique characteristic of hammer mill grinding is that material must pass through the screen to exit the mill. This guarantees the final product maximum size. Hammer configuration, rotation speed and screen sizes can be varied to process different grains. Each component can be changed individually. More hammers, faster speeds, and finer screens produce a finer grind.

Hammer mills eliminate the need to screen product. When you fine-grind with a hammer mill, it may take more power per ton and maintenance costs may be higher compared to roller mills. The possibility of overgrinding—creating too many fines—is also something the distiller should consider when using a hammer mill.

ROLLER MILLS Roller mills use compression to reduce the size of the grain as it passes between stacked pairs of rollers. The smooth rolls may turn at different speeds to introduce shearing forces, and the addition of grooved rolls adds tearing and grinding to the milling actions. Their slow speed doesn’t cause heating of the grain or related moisture loss. Small amounts of fine materials are produced, keeping dust down. The shape of the particle produced is irregular, cubical and spherical so the grain doesn’t tend to pack or become a solid mass. Bulk density is about 10 percent less than grain milled by a hammer mill, as the ground material is coarser. Roller mills may have a larger capital cost but use less horsepower per ton. Corn is an abrasive grain and may wear out a roller mill. Rollers mills may require screening to get a specific grain size distribution.

CAGE MILLS The cage mill consists of one or more rotating cages enclosed in a steel housing. Material to be ground is fed into the center of the revolving inner cage and passes outward via centrifugal force from row-to-row, finally discharging through the bottom of the mill. The source of size reduction in a cage mill is the result of impaction between the material being fed and the pins of the revolving WWW.ARTISANSPIRITMAG.COM

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cages. Impact-type grinding in the cage mill does not cause excessive heat and produces a uniform grind with minimum flour. Cage mills are used for larger production batches or continuous operations and can be used for corn, wheat, rye, malted barley and many other grains. Properly setting the speed of the cages allows the succeeding rows, moving from the innermost outward, to act principally on the particles that have not yet been reduced to the desired size. Particles that have been crushed sufficiently tend to pass through the subsequent rows without being materially affected. Thus over-crushing and under-crushing is effectively controlled by adjusting the speed of the cages. The major difference with the cage mill compared to other size reduction methods is the absence of close clearances between the crushing parts leading to less maintenance. Also, they do not require grate bars or screens for final product sizing. Cage mills produce a cubical product of consistent particle size distribution, and there is no decrease in quality of the product even after long periods of operation.

MILLING & ALCOHOL PRODUCTION PERCENTAGES Fine versus coarse grind can cause a 5-to-10 percent difference in alcohol yield. An upper limit of about 20 percent alcohol is possible with a very fine grind, but the flavor may be altered. Also, finer grinds may be harder to press, and some yield may be lost. CUSTOM CAPSULES and CAST METAL LABELS

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There’s considerable available data on grinding for distillation. You’ll find the distilling community very helpful with advice for your situation. Part of the equipment choice may be the preference of the individual distiller. Good milling equipment companies will help test your process on scalable equipment before purchase. The best equipment manufacturers also offer toll-processing services for batches large enough to improve your process or for experimentation with new ingredients and grind specifications. Cheers to that!

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Eric Marcotte is Inside Sales Manager for Stedman Machinery Company. For more information, visit www.stedman-machine.com or call (866) 416-2227.

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INDUSTRY

ROUND TABLE I

N SEPTEMBER 2015 ARTISAN SPIRIT ATTENDED THE CHICAGO INDEPENDENT SPIRITS EXPO,

a yearly gathering of distillers, industry professionals, and enthusiastic consumers from the independent spirits scene. Prior to the annual consumer event a panel of multiple industry experts and heavy hitters were assembled to talk about the state of distilling. Fred Minnick moderated a panel of bartenders, distributors, distillers, and restaurant owners, who all contributed their expertise to discuss and debate important topics relevant to our industry.

The first discussion tackled

THE VALIDITY OF THE THREE-TIER SYSTEM OF DISTRIBUTION. With many small distillers’ ability to selfdistribute being expanded by changing laws, Minnick asked the group about the changing role of traditional distributors in a new distillery’s business plan. Most agreed that while it’s useful for a distiller to be their own distributor close to home, eventually it becomes too big a job to handle alone. When a distillery is new, Monique Huston said that “there’s nobody better than the people actually creating and distilling these products to be able to get out there and tell their story effectively.” Brett Pontoni and Jason Griffin reiterated that the three-tier model may be frustrating sometimes, but distributors protect distillers from a side of the business that they may not want to deal with. Griffin explains, “There are a lot of costs that we absorb…imagine insuring a delivery truck, or employing WWW.ARTISANSPIRITMAG.COM

a sales force. Getting a distributor to get behind your brand comes from partnership.” The lesson seemed to be to make the most of a partnership with a distributor instead of viewing them as an adversary. An audience member asked if some amount of self-distribution was required before a large distributor would have any interest in a brand. The panelists mentioned that no, it will not matter to a distributor. Distributors and retailers know that a distiller has to start somewhere, and are usually more interested in attitude and work ethic rather than experience selling. Minnick then asked the panel about THE FUTURE OF VODKA. He prompted the conversation by stating, “Vodka, once upon a time, was hot. Now, sales are not doing well.” An increasing variety of flavors by large companies prompted a discussion about whether there is anywhere left for craft

vodka producers to take the spirit. Several agreed that in order to survive, vodka needs to go cheaper: with the litany of options available, it’s getting harder for consumers to choose craft vodka just because it is craft, especially if it is more expensive. Despite being touted for several years in America as flavorless and odorless, several panelists agree that vodka can go back to its European origins, with more nuance and flavor. Aaron Zacharias said “vodka should go back to its roots, and actually tell a story about bringing the grain out, treating it like something that really has some character and flavor.” Pontoni said “I think it’s uniquely American that the broad legal definition of vodka is as an odorless, flavorless neutral spirit. Whereas, in places like Eastern Europe with more traditions of distilling vodka, it’s absolutely not that. That’s why grain and the distillation method are so important.” Unique grains and methods

AT THE 2015

CHICAGO INDEPENDENT SPIRITS EXPO

WRITTEN BY STEVEN SEIM

PANELISTS M O D E R AT O R :

FRED MINNICK, DRINKS AUTHOR/WRITER R E S TA U R A N T O W N E R :

CHRISTINE TULLY ARANZA,

AUTRE MONDE

BAR OWNER: MIKE MILLER, DELILAH’S/BOTTOM LOUNGE ILLINOIS CRAFT DISTILLERS A S S O C I AT I O N P R E S I D E N T: MATT BLAUM, B L A U M B R O S . D I S T I L L E RY S P I R I T R E TA I L E R :

BRETT PONTONI,

BINNY’S BEVERAGE DEPOT SUPPLIER:

MONIQUE HUSTON, WINEBOW

BRAND OWNER:

DAVE SCHMIER, ORANGE V

DISTILLER:

PAUL HLETKO,

FEW SPIRITS M A N A G I N G PA RT N E R :

COLLEEN BUSH,

T H E M AT C H B O X & S I LV E R PA L M BRAND MANAGER:

JOANNA STRAG-HAY,

D E AT H ’ S D O O R S P I R I T S DISTRIBUTOR:

KELLY KNIEWEL,

FRESH COAST DISTRIBUTION BAR OWNER:

AARON ZACHARIAS, F O U N TA I N H E A D / B A R O N B U E N A DISTRIBUTOR: JASON GRIFFIN, W I RT Z B E V E R A G E , I L BRAND MANAGER:

CHRIS MORALES,

T R E AT Y O A K R U M B A R C O N S U LTA N T: PETER VESTINOS, USBG-IL PRESIDENT

can bring distinguishing characteristics to different vodkas which may help maintain its selling numbers.

BOURBON has been number one for independent distillers in recent years, and the panel discussed how it will continue into the future. Paul Hletko cited past volume numbers, saying that whiskey is about half of what it was in 1970, so there is still room to grow. He also believes that any new distillery should be a little scared of the word “bourbon,” citing the large initial costs needed to start making bourbon and the long timetable before it is ready for market. Minnick asked Hletko how much money he would want if he were starting a new bourbon distillery today, and Hletko’s answer was no less than $20 million, with the goal that that money would last from the first day of the distillery until the bourbon was bottled. As a new distiller, Matt Blaum said that he is part encouraged, part worried, part excited about where bourbon is going. He sees bigger distilleries putting resources

into making and storing bourbon, and Blaum Brothers follows suit by making as much as they can. He wonders about a day five years from now when they are opening barrels and maybe wishing that they had made more. He said, “It’s tough to anticipate where bourbon is going, but we anticipate to sell every drop. As a new distillery, I wish we could lay down more.” For every craft distiller, FINANCING is an important topic. After Chip Tate’s experiences and warnings to other small distillers (see article in Artisan Spirit’s Winter 2014 issue), many are understandably changing the way they think about raising capital. Unfortunately, there is no easy answer. Dave Schmier warned that, “The more successful you become with aged whiskey, the broker you become.” With the popularity of aged spirits booming, a new distillery may not be able to release product until several years after starting to produce. People who are willing to invest in a new business may be

put off by the long timetable before seeing any returns. Schmier described that you may have a choice between taking debt or selling equity. He said, “You find out that the debt is not so friendly. You may want to sign your house away. Your business isn’t looked at as good collateral. Whiskey can be collateralized, but it’s difficult.” Schmier also cautioned against working with financiers who don’t know much about the spirits industry. As an example, he mentioned that “They’ll kind of force decisions. The simple one I see the most is ‘you need to be with the biggest distributor.’” Even if a small company doesn’t think that’s the best idea, it is hard to say no to the people that put up the money. If an expensive program with a big distributor doesn’t work, then certain growth milestones are missed which (yes, some contracts are like this) could mean they get a bigger chunk of your company. The panel provided some tips for being prepared to decide if or how much outside investing a distillery might need. Knowing how large you’d like to be is important

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(whether being the best in your state or going international is your goal will be a critical factor). Also, if you do require financing, having a plan of succession is necessary for most financiers. While you may wish to pass the business down to a son or daughter, you may have an assistant distiller who would be better for the business. Either way, laying those plans out is necessary to present to anyone thinking about investing.

LITIGATION OVER WHAT CAN BE DISPLAYED ON A BOTTLE’S LABEL has continued to gain industry attention, and the panel discussed its impact on a distillery’s ability to design any new label. Joanna Strag-Hay said that a lawyer is involved with every label design Death’s Door Spirits makes. Her advice for any distiller wanting to be compliant in label information is lots and lots of research. She also believes that distillers need to not rely only on academic research. Taking a bottle to the places they’ll be used-a store shelf or a bar, etc.- will give you invaluable insight

into what does and doesn’t work with a bottle design. Questions like, “Does this fit in your well?” and “Is it easy to pour?” are worth asking actual bartenders in order to make sure a label and bottle design works. Minnick asked Zacharias how important a label is to a consumer, and he said that sometimes it’s up to the bartenders to educate the consumer. “Everyone is telling a story. John Jameson is a pirate that can lift casks and dive 1000 feet under water. When does that end? This has always been a storytelling business. If the product is good in the bottle, we’re going to sell it.” Pontoni addressed how he sees consumers analyze labels in a retail setting. He believes it’s a challenge to educate consumers on what each of the designations on a label is. Staff training and education are key to being able to help decipher words like “produced,” distilled,” and “bottled.” While that challenge won’t go away, he believes distillers, distributors and retailers can all help with educating consumers to help them understand what is behind each bottle.

Minnick concluded the panel by asking each speaker what they thought THE “NEXT BIG THING” IN DISTILLING might be. There were a wide variety of answers provided and several stand out as being agreed upon by more than one speaker. Fortified wines was mentioned by three of the panelists as a topic that they believe has room for exploration by distillers. Since craft cocktails are growing in popularity, a couple panelists said that lower-proof spirits in general, which will fit into unique cocktails, will gain popularity and variety. Craft-made pre-mixed beverages were also mentioned by a panelist as a possibility. Others mentioned craft garnishes, distiller collaborations, and the upcoming boom of importing Cuban-made rum. This year’s panel had lots of valuable information from all aspects of distilling. If you weren’t able to attend, we encourage you to look into going in the future. For more info on the Chicago Independent Spirits Expo contact Martin C. Duffy at martinipromotion@aol.com.

FROM CONCEPT TO EXECUTION YO UR

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S T R AT E G I C

PA RT N E R

“Y

ou can settle for your bottle being on the shelf, but there is high value in end-caps and window displays,” says Mike Carollo, director of marketing at Philadelphia Distilling. When a consumer goes online and sees a product on Caskers, DistillersList, Minibar, or the plethora of other sites marketing craft spirits, it provides another consumer touch point for the brand. “We want them to see our brands in more than one spot,” explains Carollo. With email

THE GROWTH OF ONLINE DELIVERY SERVICES CONTINUES WRITTEN BY RYAN MALKIN

lists and newsletter recipients often reaching into the hundreds of thousands, these sites offer consumer reach that a small craft brand may not have the public relations or marketing budget to handle on its own. But what are these sites actually selling? Hint: It’s not booze. Instead of selling FEW, Kings County, or Hillrock, these sites are actually selling their marketing savvy and email database. For instance, Caskers co-founder Moiz Ali says, “Caskers enters into relationships with retailers all over the place” who accept orders from Caskers website customers and those retailers ship the spirits to the customers. Similarly, ReserveBar, Drizly, 877Spirits, and their ilk are unlicensed marketing companies and not offpremise liquor stores. In general, these sites work the way FTD does with flower shops. A consumer visits the website or uses the app to place an order. Working with retailers in the local area, that order is immediately sent from the website or app to the retailer. The retailer is asked electronically whether it would like to accept and fulfill the order. After acceptance of the order, payment goes to the retailer and not the third party website or app. Then the retailer packages the product and delivers it to the consumer. In return for marketing products and driving consumer demand, Drizly, for instance, takes a licensing fee from the retailers. Working within the three-tier system, “the consumer orders from the liquor store and transacts with the store,”

explains Nicholas Rellas, CEO of Drizly. The three-tier system of alcohol beverage sales in the United States requires, but for various exceptions, that the producer sell to an instate wholesaler, who in turn sells to an in-state retailer, who in turn sells to a customer. Unlike wine, the shipping of spirits direct to consumers is extremely restrictive. “Whereas wineries can ship directly to consumers in 42 states for offsite sales, spirit producers can only ship to four states plus D.C.,” says Jeff Carroll, VP of compliance at ShipCompliant. Meanwhile, retailers within the state can, in more cases than not, deliver to customers within their state. That’s why these apps and sites seek to partner with retailers in as many states as possible. The retailers working with these services like it because, although delivering to consumers is an added cost, it is bringing incremental business, explains Jo Moak, general counsel for Wine & Spirits Wholesalers of America. “Convenience and having the product delivered to your home is the way the world is going with everything,” she adds. In some stores Drizly orders comprise as much as 25% of the store’s sales, notes Rellas. That translates into not only more sales for retailers, but also wholesalers and craft spirit brands. “I love the online model for boutique spirits,” says Antonia Fattizzi, founder of Cork and Tin, LLC, a company that helps small and emerging beverage alcohol brands enter the market. “It offers these new brands a platform to tell their story and gives WWW.ARTISANSPIRITMAG.COM

consumers the opportunity to hear that story straight from the producer without going to a store where the employee may not know much about the brand.” For instance, the newly launched Distiller’s List introduces website visitors to the distillery and the distillers via videos. “There are connoisseurs who want to learn more about these brands but may not be able to fly to Idaho to visit the distillery,” says Jarka Duba, founder of Distiller’s List. “By creating good content, we will drive traffic and sales.” These sites help drive a primary goal of the small distiller, which is, according to Paul Hletko, founder and distiller at FEW Spirits, “getting that connection to the consumer.” Similarly, Caskers’ Ali says, “without a big PR or marketing team Caskers can help tell the brand’s story.” Being featured on Caskers, for instance, boosted sales for J.R. Revelry Bourbon. “Caskers was a good validator, and all of the cases were sold,” says Rick Tapia, owner of J.R. Revelry Bourbon. During the month J.R. Revelry Bourbon was featured on Caskers, sales grew 25% over the previous month, according to Tapia. “The long term goal is for the consumer to buy it and be a repeat purchaser.” “People serious about distillation are paying close attention to these sites,” says Colin Spoelman, owner of Kings County Distillery. Yet, it may not always be a winning proposition for the end consumer. “The delivery apps are like a fourth tier and add cost to the end consumers on something that is already very expensive,” he says. One site working to bring more consumers to full size craft bottle purchases is the newly launched MashBox by Mash + Grape, though it’s starting small: by selling curated packages of 50mls. “Given the higher price point of these products, people aren’t always willing to experiment, but tastings work well,” explains Adi Pal, co-founder of MashBox by Mash + Grape, who comes from a retail background. After trying these products in more priceapproachable sizes, it translates into full bottle sales. One consumer who regularly buys craft spirits online is Robin Sommers, director of luxury sales at Shawn Eliot Luxury Homes and Estates in Boca Raton, FL. When he visits sites such as Caskers, he assumes he is buying directly from its inventory. “The newsletters often say exclusive to Caskers and often sell out very quickly, so given what I now understand to be the sales model, there does appear to be an overall lack of transparency with online sites,” he says. Nonetheless, Sommers does buy based upon recommendations of these sites if the description matches his preferred profile-preference. In the end, “it creates almost a halo effect, people will be asking about it in bars and liquor stores after being featured online and reading about why the product is unique,” says Ali. Ryan Malkin is principal attorney at Malkin Law, P.A., a law firm serving the alcohol beverage industry. For more information, visit www.malkinlawfirm.com or call (212) 600-5828. Nothing in this article is intended to be and should be not be construed as specific legal advice. WWW.ARTISANSPIRITMAG.COM

OSHA COMPLIANCE and SAFETY FOR DISTILLERIES W R I T T E N B Y R O B E R T P I G N AT A R O

iscussions of safety compliance often begin with horrific stories: litigation, business loss, legal expense and personal liability are presented as landmines poised to destroy your lifework. Such storytelling is intended to be scary, opaque and catastrophic. That view is wrong. Perceptive entrepreneurs embrace workplace safety and perceive OSHA compliance differently: as a means to improve financial performance and increase enterprise value. Fear motivates managers; value-creation catalyzes owners. When Paul O’Neill—former CEO of aluminum titan Alcoa—began his tenure with an emphasis on safety, market analysts were skeptical. Within a year this commitment to staff, and improved processes, yielded record profits. By the time he retired, Alcoa’s net profits had risen seven-fold while market value increased ten times. The message was clear: safety is profitable. In 1970 the federal government signed the Occupational Safety and Health Act (OSH Act), creating the Occupational Safety and Health Administration (OSHA), in response to concerns about increasing rates of employee fatality, injury and illness. The OSH Act was the culmination of statelevel legislation and demands for a federal standard to ensure safe working conditions for the populous. Safety was transformed from a loosely interpreted concept to identifiable processes that could be scaled, quantified and optimized, thus increasing the total output of the US manufacturing sector. The OSH Act outlines workers’ rights and employers’ responsibilities. Employees are entitled to information about potential threats, training in safe operating processes and protection from retaliation if they

& R. SCOTT WINTERS

raise concerns about unsafe working conditions. Employers have a responsibility to be proactive—seeking out and mitigating potential risks—and to provide safety training and equipment. Moreover, the workplace is required to be a safe environment for all visitors, not just employees. Independent contractors are no longer outside the scope of responsibility. Similarly, visitors to any part of a facility, production areas, rick houses, tasting rooms, etc., must be provided with safe conditions. So then, how does one ensure a safe work environment? This is where implementation often falters, even by those with good intentions. Understanding what, exactly, needs to be done is often cited as the barrier to compliance. The following five steps are your roadmap, guiding you through what must be done to be compliant with federal and state workplace-safety laws and regulations.

STEP 1: ASSESS AND IDENTIFY THE HAZARDS and EXPOSURES Every employer must conduct a workplace evaluation to determine whether hazards are present or likely. This assessment must be documented. By identifying the risks, and reducing or eliminating employee exposure, employers can reduce workplace injuries. For example, slips, trips and falls are the leading cause of injury in distillery operations with an occurrence rate 60 percent higher than the general industry benchmark.

STEP 2: DEVELOP PLANS, POLICIES and PROCEDURES For each potential hazard, a written, sitespecific plan must be developed. Each WWW.ARTISANSPIRITMAG.COM

plan should identify the potential hazard, determine how it can be mitigated, and clarify who is responsible. Plans should be used by employees to understand the risks, and their mitigation, unique to their workplace, and by employers to document safety standards. Standard distilleries may have eight to twelve plans, although the final number will vary for a specific location.

STEP 3: TRAINING OSHA requires that every employee receive training on the potential risks inherent with each job activity, how to properly perform these activities, and how to respond in the event of a problem or injury. For certain activities training must occur at regular intervals and be documented.

STEP 4: IMPLEMENT, MONITOR

and

MAINTAIN

Consistent implementation is the core of all safety programs. Once a plan is deployed, a monitoring program must be established to ensure that it is being followed. Depending on the task, its monitoring may be simple or complex. It is not sufficient to merely tell employees that they need to follow certain protocols, you need to have a system in place for each task to ensure that standards are being followed consistently.

STEP 5: RECORD KEEPING Records need to be kept for all processes, training, implementation, and monitoring. Maintaining proper records for each employee’s training is essential in the event of a lawsuit or an investigation. Safety records must be kept for upwards of 30 years.

— For small distilleries the above process can be intimidating— but it’s easier than obtaining a DSP. For those wanting to handle everything in-house, OSHA’s website provides resources to identify risks by category (i.e. nearly all distilleries have manufacturing, storage and office facilities, many include tasting rooms) and outlines the standards that need to be met. More commonly, companies will utilize a consultant or subscription-based service to alleviate the administrative burden. Outsource compliance companies will provide all of the plans, training, monitoring and

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record keeping required for compliance. Since they utilize industryspecific libraries, modified for your specific facility, the cost of implementation is a fraction of trying to do it oneself. As distillery owners, the well-being of our employees and business is synergistic, not exclusive. OSHA compliance is a legal obligation, like TTB and IRS reporting. Since safety is a public concern, then anyone can file an anonymous complaint or request an investigation—be they a former disgruntled employee, competitor or concerned citizen. In addition to fines and penalties, willful negligence can expose the owners, officers and directors to personal liability and criminal charges. OSHA’s line of communication to other federal agencies often results in concomitant investigations by other agencies, including the IRS and TTB. As a result of this potential for undisclosed exposure, investors and potential buyers often leverage this information to discount a company’s valuation. Being able to show safety protocols, proof of training and historical records protects the company from litigation thus eliminating a key negotiating point during a business sale. In addition to maintaining corporate value, a strong safety program improves profitability both by increasing revenue and decreasing costs. Implementing standard processes increases efficiency and is the foundation of scalability. By removing ambiguity from core functions, staff productivity improves as effort becomes focused on execution rather than interpretation. Finally, risk management decreases downtime and employee absence, and when coupled with discounted insurance rates available to companies with compliant safety programs the result is significant cost savings. In conclusion, while compliance with the OSH Act is mandatory, implementation transcends risk mitigation and when systematically applied increases productivity, decreases operating costs and raises corporate valuation. With the availability of simple, off-the-shelf solutions from consultants and outsource companies there is no reason why your staff and visitors should not be provided with the safest environment possible. Robert Pignataro is President and CEO of American Compliance Systems. For more info, visit www.acs-safety.com or email rpignataro@acs-safety.com. R. Scott Winters is Founder of The American Spirits Exchange. For more info, visit www.AmericanSpiritsLtd.com or email Scott@AmericanSpiritsLtd.com.

FRUIT DISTIL FERME LATE NTATIO N THE A RT AN D SCI ENCE OF

WRIT

TEN

BY A TTIL A

KOVA

CS A ND M ARAT

MAM

EDOV

///

ILL

USTR This three-part article is focused ATIO N BY AMAN on the topics of fruit selection, DA J OY C HRIS preparation, and fermentation for an Eau De Vie TENS EN (EDV) style brandy. Part one in this series covered fruit selection, preparation, and fermentation basics and was published in the Fall 2015 issue of Artisan Spirit Magazine. Part two focuses on the fermentation tank and process.

FERMENTATION OVERVIEW During alcoholic fermentation, yeast uses sugar and other fermentable raw materials (decomposed polysaccharides such as starch, cellulose, and pectin) in the mash for a carbon source— their food. The metabolism of yeast’s carbon source is a complicated process that is defined by carbon source availability and fermenting media conditions like pH, temperature, dissolved salts, acid types, yeast’s generation and age, and presence of other microorganisms. While yeast cells can thrive in the presence of oxygen (aerobic condition), the fermentation “magic” happens when there is a lack of it (anaerobic condition). In this oxygen-free environment, the carbon source is decomposed, where large, high-energy content molecules are broken down into smaller, less energy containing ones. At the start of the fermentation process, when the empty fermentation tank is filled with fruit mash, oxygen is present in the environment. In the presence of oxygen yeast cells propagate by “eating” sugars to create carbon dioxide, water, and additional yeast cells. The yeast cells continue to reproduce until they run out of oxygen in the mash, at which point they stop the reproduction and start the fermentation. Some yeast strains have the ability to reproduce and produce alcohol at the same time, while oxygen is still present in the mash. This is another good reason to research the yeast options before selecting the right type of strain for the mash. When oxygen is no longer in the mash, the yeast ramps up the alcohol production and creates energy. This following equation is the mass balance of approximately 30 biochemical processes that occur in the yeast cells during fermentation.

C6H12O6 = 2C2H5OH + 2CO2 + HEAT + 40KCAL (168 KJ) 60

PART

This equation stands for the ideal conditions that must be set according to the raw material used in the mash. An apple mash requires a different mash media than a pear or apricot mash, and berries are another category that has specific requirements during fermentation. Though ideal conditions vary by fruit and yeast, the following guiding principles can be applied to fermentation of all fruit mashes: •

Temperature should be between 12° C and 20° C »» Lower temperature (<12 °C) results in a slow fermentation »» Higher temperature (>20°C) can lead to a greater concentration of unwanted head compounds that will negatively affect the quality of the spirit

•

The mash texture should be runny and fluid, not “jelly-like.” The latter prohibits the mobility of the yeast cells in the mash, which leads to low alcohol yield and, in most of the cases, high methanol content

•

pH of the mash should be between 3.0-3.4. pH value should never be above 4.2, or below 2.8

•

Select the ideal yeast strain for the raw material used in the mash to obtain a higher alcohol yield and to minimize negative impact to the mash

•

If fermentation is slow, adding yeast nutrients to the mash will accelerate the process

•

The mash must be periodically stirred—depending on the mash type, either every day or every other day WWW.ARTISANSPIRITMAG.COM

K N A T N O I THE T A T N E FERM

lled, contro a e id ov will pr CLOSED or OPEN-TOP g k that n a t chievin a n o io t t l a t a n ic e it FERMENTATION TANK? ed ferm it mash is cr erly siz u r p f o r While open-top fermentation tanks are e p h t , ht for f the rig nvironment o e s used by some distilleries for u e ry The AGITATION sanita d n a , whiskey production, the uct: stable Fruit mashes require mixing for even dispersion al prod n fi y t FERMENTATION OF FRUIT a quali of yeast cells, sugar, and nutrients, and to remove excessive MASHES MUST TAKE PLACE CO2. An agitator should have enough power to stir various mash FERMENTATION TANK SHAPE IN THE CLOSED-TOP consistencies, including the more chunky apple mashes. A closed-top, Fermentation tanks should be FERMENTATION TANKS. stainless steel tank with built-in agitator allows the distiller to stir selected to accommodate the type of Unlike grain mash mash without exposure to aerobic conditions that could result in lower mash you are looking to ferment: that is cooked alcohol yields and loss of fruit aromas. before fermentation CONICAL-BOTTOM TANKS are mostly to break down used in beer production. The sharp starch cells, CONSTRUCTION MATERIAL slope of the cone allows for the fruit mashes are Stainless steel fermentation tanks should be used when fermenting fruit mash. separation of yeast from liquid. fermented without Unlike plastic, stainless steel does not rust, is easier to clean, and is more ROUND-BOTTOM TANKS are the ideal any heat treatment. durable. There are several reasons why plastic bins (such as PVC and HDPE) candidates for EDV fermentation. These In order to make should not be used for fermentation: tanks have a slightly parabolic-shaped the fermentation PLASTIC IS A SOFT MATERIAL. During production and cleaning the bottom that works well for stirring fruit conditions unfavorable inner walls of the plastic bin can get scratched. The scratches can mashes and makes it easier to clean. for any unwanted harbor bacteria and provide a breeding ground for mold. microorganisms fruit SLOPED FLAT-BOTTOM TANKS are a SOME CLEANING DETERGENTS TEND TO STICK TO PLASTICS EASIER mashes must be cooled, good alternative to other tank shapes THAN TO STAINLESS STEEL. The mash quality may be compromised the pH value lowered, for fruit mash. The gently sloped if the wrong detergent/disinfectant solution is used. and every other aspect bottom provides a gentle angle to of the fermentation make the tank easier to clean. Especially by the end of fermentation, acids, alcohols, ketones, tightly controlled. aldehydes, and other naturally occurring compounds in FRUIT MASH

TEMPERATURE CONTROL While fermenting, yeast feeds on sugar and converts it to alcohol. This activity generates heat that, if not addressed, will impact the quality of the final product. Higher mash temps can result in higher alcohol mashes and faster production of alcohol. However, higher temps can affect the metabolism of the yeast and cause it to generate relatively more secondary compounds (byproducts) and flavors that affect the integrity, aroma, and flavor of the mash. To avoid consistency issues with the mash, temperature controls need to be in place on the tank or in the fermentation room:

CAN ACT AS A SOLVENT AND ATTACK THE WALL OF A PLASTIC BIN. These natural ‘chemicals’ will detach chlorides and other compounds found in the makeup of the plastic tanks that will end up in the mash.

A COOLING PLATE OR COIL located inside the tank. A COOLING JACKET that uses chilled water or glycol to cool the tank. A separated, TEMPERATURE CONTROLLED ROOM requires additional cooling and may not be as accurate in controlling the mash. WWW.ARTISANSPIRITMAG.COM

ADDITIONAL FIXTURES SAMPLING PORT to avoid aerating the mash while sampling, this feature allows the distiller to take samples to measure pH and sugar content without opening the tank. PRESSURE RELEASE VALVE (BUBBLER) to prevent pressure buildup inside the tank, this feature allows the gasses formed inside the tank (mostly CO2) to escape.

A CLOSED-TOP FERMENTATION TANK PROVIDES BETTER CONTROLS FOR THE FRUIT MASH AND REDUCES THE POSSIBILITY OF WILD YEAST AND UNWANTED MICROORGANISMS PROPAGATION IN THE MASH. Wild yeasts or other microorganisms can affect the mash that will carry through to the aroma and taste of the final product. Preventing mash exposure to air is important for distilleries looking to store the fermented fruit mash for a longer period of time (more than two weeks).

N O I T A T N E M R E F ESS PROC THE

THE PROCESS CONSISTS OF THE PREPARATION PHASE AND THREE MAJOR FERMENTATION PHASES:

RATIONE A P E R P PHAS

The fermentation process starts with a preparation phase, a.k.a. lag phase. During the lag phase, yeast cells synthesize enzymes and other proteins so they can adapt to the new environment. This phase usually takes three hours.

PHASEE ON

During the first phase of fermentation the yeast reproduces and propagates due to the presence of the oxygen in the mash (aerobic conditions). This propagation due to aerobic conditions usually lasts for a day.

PHASOE TW

In the second phase of the fermentation, which usually takes about 4-6 days, with the absence of the oxygen in the mash yeast stops reproduction and converts sugars into alcohol.

In this phase, as the fermentable sugars are depleted from the mash and yeast cells begin to focus on the secondary food sources, the distiller must pay very close attention to the mash. Due to the lack of sugars and the relatively high concentration of carbon dioxide and ethanol, yeast gradually starts to “behave” strangely. Under these stressful conditions, as they begin to run out of primary and secondary food sources, yeast cells start to die, at which point unwanted metabolites are formed. As yeast cells continue to die quicker and in higher volumes, they introduce a large number of “tail” compounds into the mash.

PHASEE THRE

During this process, malolactic fermentation occurs, where lactic acid forms esters with alcohol. These esters are important because they contribute to the pleasant aromas of the final product. Depending on the temperature in the fermentation tank, this process could last between 2-10 days. After this period, the decomposition of the dead yeast cells overwhelms the esters, turning the mash into a bad smelling substance that should not be used for distillation. The golden rule is to distill the mash as soon as fermentation stops—do not let it sit around. Phase 3 has no sharp ending. Waiting too long before moving the mash to distillation will result in spoiled mash due to the harsh environment and lack of nutrients and food for the yeast. As a result, yeast cells start to die and decay, leaving an oily, bread-skin like aroma that will impact the quality of the EDV.

SETTING THE pH While the process of achieving desired pH levels in the mash starts before the fermentation stage, during fermentation the pH levels should be checked on a daily basis. To set the pH level, acids like sulfuric and phosphoric can be used, and very rarely sodium hydroxide (NaOH). Organic acids like malic acid, citric acid, or tartaric acid can also be used but they are weaker than their inorganic cousins (sulfuric and phosphoric acids) and require a lot more time and resources to achieve a desired pH level. Regardless of the acid used, the distiller should always wear protective glasses, gloves, coat, closed shoes and practice common sense when handling chemicals. Never use acetic acid to set the pH levels. This creates the ethyl-acetate ester formed during the reaction of acetic acid with ethanol. The ethyl-acetate ester smells like a paint solvent and is the sign of the poor quality mash and end product. To complete the fermentation process and to get mash ready for distillation, the distiller requires specific tools and instruments that will be covered in the third part of this article. Attila Gabor Kovacs is a PhD scholar and an industry recognized expert in the fermentation and distillation of pálinka, a Hungarian fruit brandy. Attila has over nine years of academic, research, and professional experience in distilled spirits production and assessment. He has developed and taught Bachelor's and Master’s courses, and authored publications about pálinka production and origin identification. Attila is a member of the National Pálinka Committee and a distilled spirits sensory judge.

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WESTLAND DISTILLERY’S SINGLE MALT SUCCESS WRITTEN BY CHRIS LOZIER /// PHOTOS BY AMANDA JOY CHRISTENSEN

“Y

ou have barley,

which is this ancient, humble grain, and you take that malted barley, yeast, water and the casks that it matures in and you can get this broad array of flavors,” explains Matthew Hofmann of Westland Distillery in Seattle, Washington. “That to me is really exciting—I love the challenge of using only those four ingredients to make something that nobody’s ever tasted before.” In 2010, Hofmann and Emerson Lamb founded Westland to pursue that challenge, and their passion for making fine whiskey has earned them national distribution and respect. In five years Westland has grown into the largest single malt whiskey distillery in America, and one of the most awarded, as well, boasting multiple double gold medals and best-in-class awards from the world’s most distinguished competitions. They only use three mash bills—100 percent Washington grown malt, 100 percent peated malt, and a top secret five malt recipe (which they give out to everyone)—so on the outside their philosophy is pretty simple. But of course there’s more to it than that.

From these group tastings and his own work, Hofmann says they are building a new company protocol for spirits evaluation. While they still use standard sensory analysis, as they have done and recorded from the beginning, they are also trying to figure out why people like certain attributes in the first place. “We started down this really long road of, ‘Why is it that people actually like these flavors?’” explains Hofmann. “What is the underlying theme behind taste? This is a very big concept, and I think we’ve just begun to take a peek at a few things, but we have seen a few patterns emerging.” Much of this evaluation happens in their onsite lab, which Hofmann says is essential because of their unique techniques. While Westland utilizes many traditional single malt methods, some of their processes and ingredients are surprising. For Westland to competently blend and develop their whiskey they have to study it themselves, because there’s no textbook for innovation.

Their maturation techniques are innovative, too. Rather than strictly aging in used whiskey barrels like traditional Scotch, they use new oak, their own onceused oak, or used sherry barrels, depending on the whiskey. And then there’s that secret recipe. Seventy percent is Washington grown pale malt sourced from Great Western Malting Company in Vancouver, Washington and Skagit Valley Malting Company in Burlington, Washington. The other 30 percent is specialty malt, which brewers have long utilized, but most distillers never consider. “The roasted malts, the new oak, how the esters from the yeast come out over the course of the maturation period” begins Hofmann, “there’s no real precedent for it so we have to track these things from the ground up.”

Old Techniques and New Ideas

Constantly Improving

With his Scottish education, traditional spirits safe, and single malt lautering and distillation equipment that prevents him from making anything except single malt whiskey, Hofmann celebrates single malt traditions. But working within those parameters, he’s finding room for innovation, as well. “One of the things that we’re working on is how technique affects the flavor of the whiskey,” tells Hofmann. “A lot of people know that the way you make your heads and tails cuts determines the flavor of your product, but what’s not quite as commonly known is that the way that you mash makes an equally big contribution to the flavor profile.” Westland uses saison beer yeast instead of distiller’s yeast, and while typical single malt mashes will ferment in two days, the saison yeast takes five days and yields an eight percent abv mash loaded with citrus, earthy spice and red berry notes.

Westland ships their spirits from the Seattle distillery to their two 25,000 square foot rack houses two hours away on the Pacific Ocean. Here the whiskey matures in an ambient air, non-temperature-controlled maritime environment. Alongside the benefits of the salty, humid sea air, Westland doesn’t have to worry about overoaking the spirit, either. “We don’t have to make anything up,” says Hofmann of their ideal climate for single malt. “There’s a lot of truth in what we do and it makes our job much more compelling.” Hofmann says their local barley is also fantastic. The Skagit Valley is one of only six regions in the world that can grow low-protein, large-kernel barley, which is exactly what distillers want. That’s why Washington State University is studying new, old, and non-traditional barley varieties just up the road at their Mt. Vernon Research Center. Many of these varieties are preferred by bakers, brewers and distillers, but most are susceptible to pest and disease damage, making them a

Right now Hofmann is traveling between Seattle and Edinburgh, Scotland where he’s working on a master’s degree at Heriot-Watt University. Heriot-Watt’s distilling program is one of the most respected in the world, and Hofmann says studying in Scotland, the epicenter for malt distillation, has helped him improve Westland’s whiskey. “We’ve got a distillery, but now how do we become a really good distillery?” poses Hofmann. “That’s a big part of it—taking the next step.” Education is a priority for Westland, so each week they have Whiskey Wednesday where all of the employees gather for a blind whiskey tasting and discuss the whiskeys as a group. The employees benefit from learning about their craft as a team, and Westland benefits from a more educated group of employees (who also get to drink great whiskey together).

A Good Place for a Distillery

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losing proposition for farmers. WSU’s goal is to change that, and they’ve asked Westland and Skagit Valley Malting Company to help. “They’re passionate about breeding barley, as passionate as we are about making malt whiskey and as passionate as Skagit Valley Malting Company is about making malted barley,” says Hofmann. “With everybody together, really specializing in our individual areas, but working together collectively, I think we accomplish a lot more.” Westland and Skagit also work together on different varietals, field to field variations, and even vintages, much like the wine industry. While malters typically iron out those differences, Skagit can highlight them instead, and Westland plans to offer special release whiskeys based on this experimentation. The only malts that Westland sources from outside their local area are the specialty roasts, which Hofmann encourages other distillers to try. “The secret recipe is 70 percent pale malt, 10 percent Munich, 12 percent Briess

Extra Special, 4 percent Thomas Fawcett Pale Chocolate and 4 percent Thomas Fawcett Brown,” offers Hofmann. “We give it out to everyone. We feel like we don’t have anything to fear by sharing information with folks. If we’re worried about people stealing

our secrets then that means we’re doing something wrong here, we’re not pushing ourselves hard enough."

Westland Distillery is located in Seattle, WA. Visit www.westlanddistillery.com or call (206) 767-7250 for more info.

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This is the fourth in a series of articles providing a focused look at the Federal regulatory requirements for filing reports of operations and excise tax returns and payments.

n the last article, the TTB Processing monthly report was presented. For this round the topic is the Excise Tax Return, TTB F 5000.24, and related payments. A distillery is required to pay federal excise tax on distilled spirits products removed for sale to wholesalers or retailers, and includes all products moved to a tasting/retail area adjacent to the distillery. Untaxed products must remain in the bonded premises and bottled products must be taxed when removed (with exceptions such as export and samples sent to a lab for analysis). Filing of returns and payments of Federal excise tax must be timely and correct. Failure to timely file the return incurs a 5 percent penalty even if one day late, plus 0.5 percent penalty for untimely payment plus interest on the unpaid amount. Late filings of tax may lead to a notice of assessment, cited violations during an inspection or audit, and possibly an adverse action against the distiller’s permit. TTB monitors the payments and has the capability to compare tax returns and reports and inquire about any noted differences. The proof gallon amount shown on the monthly reports as withdrawn tax determined must be accurately supportive of the tax amount paid with the tax return. TTB allows for your distilled spirits excise taxes to be paid by mailing a completed TTB F 5000.24 along with a check to the “lockbox” address (see the instructions on the form) where the checks are processed and returns posted. As long as you have a US Postal Service postmark (or equivalent express service receipt) dated on or before the due date the filing and payment will be treated timely. An alternative which TTB does encourage for filing returns and paying taxes is the Pay.Gov online system, which can also be used for filing of the monthly DSP reports. The return and tax payment are filed online by credit/debit card or via direct deposit. Pay.Gov access is obtained WWW.ARTISANSPIRITMAG.COM

DSP Federal Reporting

by submitting a TTB F 5000.31 by mail to the TTB National Revenue Center in Cincinnati. There are a few basic items to keep in focus regarding excise tax returns. First is the frequency of filing. As long as your total excise tax due for the year is under $50,000 the returns can be filed quarterly, due 14 days after the end of each calendar quarter. For example, the return due for the three months (October, November, December) ending on December 31 of 2015 is due to be filed and the tax paid by January 14, 2016. Once the tax hits the $50k threshold, you must start filing returns and paying tax on a semi-monthly basis, with a special third return due in September for a total of 25 tax returns per year. For example, in January, the period January 1 through 15 is covered by a single excise tax return, which is due by the 14th day after that period, January 29. The balance of January, the 16th through the 31st, is covered on a second tax return, due to be submitted with payment 14 days after on February 14th. For the artisan craft distiller, the computation of tax due would be based upon the quantity which is entered on

LINE 33 OF THE TTB PROCESSING REPORT, FORM 5110.28. For a

EXCISE TAX RETURN TTB FORM 5000.24 WRITTEN BY JIM MCCOY

quarterly return, add the Line 33 amount for the three months of the quarter; this would be the total taxable removals from bond that quarter, then multiplied by the tax rate of $13.50 per proof gallon. For example, October had 200 pg, November 320 pg, then December 440 pg, for a total of 960 that quarter, tax due of 960 x $13.50 = $12,960.00 for the quarter, payable with the return to be filed January 14.

EXCISE TAX RETURN, TTB FORM 5000.24 Completion of the TTB Form 5000.24 is fairly simple. Item 1 is the SERIAL NUMBER, which begins with 1 each year, formatted as “201501” and so on. Item 2 references the FORM OF PAYMENT (check, usually), item 3 is the AMOUNT OF PAYMENT, item 4 defines the period the RETURN COVERS, showing the starting and ending dates, such as “10/01/2015” beginning date and “12/31/2015” as the ending. Item 5 is

for PREPAYMENT “DEPOSIT” RETURNS (discussed below). Items 6, 7, and 8 are the EIN and DSP NUMBER, and the NAME AND ADDRESS OF THE COMPANY. For DISTILLED SPIRITS, the amount of tax is entered in Line 9 and in Line 17. Any adjustments (such as an INCREASING ADJUSTMENT from a prior return, or payment of penalty or interest instructed by TTB) are entered in Schedule A and the adjustment amount is shown on Line 18. Line 19 is the total of Lines 17 and 18, Line 20 is the total of DECREASING ADJUSTMENTS from Schedule B (such as an approved claim for credit), and Line 21 is the NET DUE TO BE PAID WITH THE RETURN, matching Item 3 noted above. The DATE, SIGNATURE of a person with signing authority and their TITLE are entered in 22, 23 and 24.

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The TTB designated mailing address is on page 2 of the return. In Pay.Gov, the company data and payment preferences are saved in the user profile, and each return is created by entering liability data, then any adjustments, and when those are correct, the payment and method are selected, and the return is submitted. Since the processing of Pay.Gov returns is through external parties, it is required that a Pay. Gov tax transmittal be done before close of business the day before the due date to allow for processing. An image of the return form and payment confirmation can be downloaded and saved for your records. A distiller who will be regularly removing products from bond subject to excise tax will need to have withdrawal bond coverage. This is established when the DSP is set up by submitting a “Unit Bond” which covers both operations and withdrawals, or

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a separate withdrawal bond, which allows deferral of excise tax from the date of removal until the tax is paid with a quarterly or semi-monthly return. An alternative (not desirable) is to pay the tax each time a removal is made, which could mean daily submission of tax returns and payments (prepayment returns). The withdrawal bond coverage needs to cover the tax on the amount of product removed but on which the tax is not paid. For a quarterly filer, the bond would cover three months of taxes. A semi-monthly filer would need to cover one month’s taxes.

As this article closes the series covering preparation of TTB reports and the tax return, it has been a pleasure to share this information with the Artisan Spirit readers. I have tried to simplify and make sense

of the forms and how they are typically prepared by artisan distillers. For more information, please always also check out the growing body of information on the TTB.Gov website; my former colleagues in the agency continue to strive to add to the available helpful information that a distiller may need to ensure compliance with the Federal operations, permits, taxes and reporting rules.

Jim McCoy is Managing Consultant for J. McCoy Alcohol & Tobacco Compliance Consultants LLC in Cincinnati, OH. Jim served over 32 years with ATF and TTB, establishing his consulting firm in 2010 to assist alcohol and tobacco businesses in their efforts to meet Federal regulatory and tax requirements. For more information visit www.jmccoyconsultants.com or email jmccoy@jmccoyconsultants.com.

WORKING in

CODE WRITTEN BY SHAWN BERGERON

“COME HELL OR

HIGH WATER WE’RE GOING TO HELP YOU ON THE RIDE FROM BUILDING PERMIT APPLICATION TO THE CHERISHED AND OFTEN ELUSIVE

CERTIFICATE of OCCUPANCY” 70

atch distilleries, craft distilleries and distilleries of mystical titles are cropping up at a dizzying pace, and while this trend continues it’s making the heads of building and fire code officials spin. In the building and fire code world your distillery venture is not something people are used to dealing with and therefore it will raise concern. When the code folks get concerned they get conservative and for you, conservative is not good. Most code officials today have dealt with brewpubs or wineries, and unfortunately many don’t recognize the differences between those businesses and your distillery until too far into the game. If I had a dollar for each time I had to correct a local code official talking about the new “brewery” I’d be reclining on a beach somewhere. They jump into your project all-knowing, often heading down the much less code-restrictive brewpub and winery path, until they realize that what you’re talking about is alcohol, really pure alcohol. Suddenly their eyes become wide and you’re faced with frightened and confused individuals that wield significant power. Our goal is to help you to present your distillery project in a way that will assuage their fears by showing them that you understand at least some of their world. Over the next few issues (or as long as it takes) we are going to work to make you code informed so you can better advocate for your business. Come hell or high water we’re going to help you on the ride from building permit application to the

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cherished and often elusive certificate of occupancy. Jump on board. You’re going to learn things you never thought you would need to know. When dealing with code officials, one never knows what to expect. In larger metropolitan areas you’ll likely be dealing with an array of officials who often don’t enjoy one another, don’t communicate with each other and grin like Lewis Carroll’s cat when presented the opportunity to throw one another under the bus. There will be permit technicians, building officials, fire officials, plumbing inspectors, mechanical inspectors and the electrical inspector. You’ll often be faced with a lengthy path just trying to gather answers to your code questions and obtain permits to begin construction. If your chosen location is a small town, you’ll probably be dealing with the local part-time fire chief who is an overworked soul who cares strongly about their community and their emergency responders. They’ll tell you all about “putting the wet stuff on the red stuff” but have been provided very little training in the world of code, so at some point in the process the chief is probably going to become concerned and then they’ll call in some out of town help. In either situation, the powers-that-be are going to want to know everything about your business, what exactly you do and how your business might affect surrounding buildings, passersby, customers in the tasting room and responding emergency personnel. They’re going to want to know everything about your “occupancy”, the first and probably most important code word that you need to know. In the United States the largest adopted family of building codes are written by the International Code Council, a group dedicated to developing model codes used in the design, building and compliance process to construct safe structures. Alongside the International Code Council

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there’s the equally large, certainly older, National Fire Protection Association (NFPA), a nonprofit organization devoted to eliminating death, injury, property and economic loss due to fire, electrical and related hazards. In most cases, you’re going to find yourself working with codes and/or standards from both entities. What’s the difference between a code and a standard? I’m glad you asked.

A CODE TELLS YOU WHAT YOU NEED TO DO. A STANDARD TELLS YOU HOW TO DO IT. You almost never get to a standard until you’ve been directed there by a code. Remember that! This is an important tidbit for the future. In the world of building and fire codes nothing can happen until your occupancy is accurately identified from within the codes. Nothing…you can’t even select the light bulbs or the wall finishes. When the occupancy of your new venture is accurately identified the code information you need can flow all hearts, but when improperly identified, it’s all heads. When identifying the occupancy, you need to start with the building code and fire code, moving onto other codes and eventually standards as your planning progresses. The good news is that despite often coming from different authors, when applied with wisdom the building codes and fire codes can work well together and an identified occupancy in one usually matches the occupancy in the other. There we go again, that “occupancy” word. We need to get started figuring out what you are but before we can do that we first have to answer a seemingly simple question: What is “alcohol”? In the case of your distillery the alcohol is a distilled product (ethanol) which will often be extremely pure, perhaps 95 percent alcohol by volume. Your wonderful

alcohol is a liquid, that’s easy. It has a flashpoint (the lowest temperature at which the vapor of a flammable liquid will ignite in air) below 73° F and its boiling point, about 173°F, is higher than 100°F. Fire code classifications for liquids tell us your premium hooch is a Class 1-B flammable liquid. That’s important. There’s another characteristic of your wonderful clear liquid that’s important, actually not of the liquid but of its vapors. Alcohol vapors have a density 1.6 times heavier than that of air and those vapors are invisible. What does that mean? It means those pesky little alcohol vapors settle into low places and you can’t see them hiding there. Cool stuff right? Yup, for code geeks. An electronic word search in the 2009 edition of the International Building Code and appendices will not find the word “distillery” and finds only four instances of the word distillation. And, not a single distillation mentioned will be associated with your new venture, unless you’re distilling wood. An electronic search for the word “alcohol” sets off eight hits with only two of any interest. In the “Factory Industrial (F-1) Moderate-hazard Occupancy” we find information of importance: “Beverages: over 16-percent alcohol content”. In a “Factory Industrial F-2 Low-hazard Occupancy” we find “Beverages: up to and including 16-percent alcohol content.” Oops…there’s a serious difference between those two and in fact, we see the difference between the beer guys and the spirit guys—it’s the difference between “up to and including 16-percent alcohol” and “over 16-percent alcohol”. See, you’re already learning some cool code stuff as your hooch is way over 16-percent alcohol content! Let’s look further into this “Factory” occupancy classification as it seems to be where we’ve landed. From the International Building Code: “The Factory Industrial Group F occupancy

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includes, among others, the use of a building or structure, or a portion thereof, for assembling, disassembling, fabricating, finishing, manufacturing, packaging, repair or processing operations that are not classified as a Group H hazardous or Group S storage occupancy.” Wow, I think that’s you but wait. What’s that about “not classified as a Group H hazardous or Group S storage occupancy”? Let’s ignore “storage” for now but what about that “hazardous” stuff? I do not like the sounds of that but we have to continue. We need to get your distillery operating. The International Building Code tells us that a High-hazard Group H occupancy includes occupancies that involve the manufacturing, processing, generation or storage of materials that constitute a physical or health hazard in quantities in excess of those allowed by specific requirements detailed farther into the code. OK, so far. We accept that you’re doing all those things, manufacturing, processing, generation and storage of materials but do they really constitute a physical or health hazard? The codes tell us they do if you exceed specified quantity limits within “control areas” and those limits are not large. The International Building Code tells us that to maintain the non-hazardous “factory” occupancy your distillery is limited to 120 gallons of class 1-B flammable liquid in storage, 120 gallons in a closed system and 30 gallons in open systems. If your new distillery has fire sprinkler protection those quantities can be doubled. So, you’re going to sprinkler protect your new venture and limit yourself to 240 gallons in storage, 240 gallons in process and 60 gallons in finishing and bottling? Sure you are—and you’re going to go broke. Like it or not, the codes have forced you to take the next step and admit what you are.

Congratulations! It certainly looks like you are the proud owner of a High Hazard (H-3) occupancy! What exactly does that mean? In our next writing we are going to cover where this High-Hazard (H-3) occupancy title is going to take you but I’ll give you some hints: It’s going to affect how your new distillery is built, how close your new distillery can be to the cupcake factory next door, and how the light fixtures next to that shiny copper still are going to look like they came out of Red October. Is it good or bad? That depends on how well you plan out that new distillery with the operative word being “plan.” This is not the time to go for it and hope for forgiveness later. Till next issue—keep the ingredients honest and know where your vapors are spending the night.

Watch the Orphan Girl Film at: orphangirlfilm.com/watch

Shawn Bergeron is Manager/Code Consultant for Bergeron Technical Services. For more information, visit www.bergerontechnical.com or call (603) 356-0022.

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YOUR WINDOW TO THE WORLD WEBSITES, DOMAINS, SEO, AND MORE. WRITTEN BY TOBY HALL

YOU’VE DONE THE HARD

PART. You’ve created a unique spirit with a great name—a name that you hope will one day become a major brand. Many entrepreneurs get to this point for their venture and then soon start drifting off into a dream state. They dust off Excel and begin computing what a 0.1 percent, then 1 percent, then 2 percent market share of the local, make that national, no make it international market could mean. And yes, the addressable target markets are always multi-billion dollar ones. Then the concerns start to emerge—are we going direct or adopting a distribution model? What amount do we need to be spending on marketing if we’re going direct? Scrub that, let’s go via partners. Scrub that, I’ll call Joe so we can get our first orders. Hell, I need a coffee, some air, a drink. At some point during the conversation the topic of websites inevitably emerges. “What we’ve got is great, I put it together myself”; “My partner’s brother is an amazing designer— take a look”; “We basically scraped it from a competitor—it kind of does everything it needs to.” The third answer is tempting—apart from the fact that it’s normally followed by a “cease and desist” letter from a competitor. In one instance, an over enthusiastic startup had copied someone else’s site but had forgotten to remove their name from the T&C’s section. Way to go… to court. So where in the great scheme of things should a website sit in a business’s plan to develop a product for a market? Should it be the first thought or the last, or perhaps somewhere in between? The timing isn’t what’s important; what is critical is that the web presence is properly centered on what the business is wanting to achieve. By “centered,” I don’t mean locking into a particular strategy. It means that structurally the site reflects the business’s game-plan so that if the business is about white-labeling then that is the dominant message; if it’s about providing a portal through which distribution and reseller partners can access everything they need to sell, then that is how it is structured; or if it’s about direct selling to consumers, then the customer service and payment processes are properly set up behind it so that it all works smoothly. And if it’s to cover all three audiences—as well as keep seed investors happy—then again that should all go into the melting pot before any page is designed. Yes, the wire-frame of the site needs to be fit for purpose—which means you need to be sure what the primary purpose of your business is. At one level it’s all pretty straightforward, common-sense stuff. But many early-stage businesses have been through a series of 180-degree turns at this point because it’s often the first time the founder has taken the time to think through their sales and marketing plan beyond the immediate 60-day horizon. “ R E A C H I N G T H E P A R T S T H AT O T H E R S C A N ’ T R E A C H ” There was a famous advertising campaign in the 1970’s run by Heineken. It used a strap line that allowed them to overlay the beer with any trending topic of the day. Be it the first video game to hook a generation (see link), Star Trek, Dallas and so on, for 33 years.

www.youtube.com/watch?v=BFn-jSSrBPQ The reason the campaign sticks in my mind, is that it’s a line that, when liberally borrowed, resonates well with the aim of modern online marketing—“reaching the parts that other ads can’t reach.” In short, online activity has the rare ability to both shape and reinforce messages that people have picked up in the real world—for instance, by word of mouth—as well as reach new audiences. And every click can be measured. It’s no wonder that digital marketing has become the golden child of marketing teams, spawning an array of measurement tools. However, for all the tricks, one truism remains relevant—there is no one silver WWW.ART ISANSP IRITMAG.COM

online bullet. Winning today is much more about throwing a series of combination punches rather than landing a single knock-out blow. Brands now understand that online marketing works best when supported by—or integrated with—activity that feeds into the real world, and vice-versa. We see, we check, we then start to notice as the name starts to pop up elsewhere. Names start working their way into our psyches. I remember the first pair of Nike’s—not because they were in the stores, or being advertised, or particularly known to kids in Europe—but because they were doing an outreach to young athletes and a friend gave me a spare pair. They were sacred—I could, for one brief moment in time, be like John McEnroe. Today our first touch, or experience, of a brand may not be so physical; it’s more likely to be online. But even if we physically touch it first, we are certain to go online to check it out.

SEO AND SOCIAL So it’s against this backdrop that we start to begin thinking about “SEO” (search engine optimisation)—the checking it out bit. On the SEO front, we’re in interesting times. In the U.S, .com is still the number one web ending. No one will argue that. But over the last decade country codes have emerged, like .uk for Britain, .de for Germany and .fr for France. You may be surprised to learn that country codes now account for broadly half of all the domain addresses on the Internet today—and all of that’s happened in the

last decade. Yep, there’s a reason why Apple dropped the .com on their iPhone keyboards. Today, we now have a whole new family of domain endings emerging—city endings like .nyc, .london, .berlin as well as the recently launched .miami; and endings based around people’s professions and interests like .law, .fashion, .fit. Likewise truly generic ones such as .xyz and .work are gathering massive support. So much so that new domain endings are catching on—really catching on. In fact nearly 9 million new top-level domain name addresses have been registered in the last 18 months. In the second quarter of this year they outstripped .com in terms of adding to the aggregate base of registered domain addresses by a factor of nearly 3 to 1. And what’s more, there are endings specifically for the liquor industry, such as .beer and .vodka. Why is this important? Well from a branding perspective—you can get a .vodka name with reasonable assurance that your name is available. This is kind of a big deal when launching a new product, or marketing an existing one. Secondly, search engines are inevitably evolving so that the word right of the dot (i.e. the extension, or ending) will start receiving greater weight, and be treated by Google in a way similar to how they use location as a predictor of what content the consumer is looking for. For instance, when I run a search when physically located in the U.S., the results will be different from the same search run from Europe.

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D O E S T H I S M E A N Y O U H AV E T O S WA P O U T Y O U R E X I S T I N G WEB ADDRESSES? Absolutely not, but incorporating one or more additional domain ending names in your marketing is like opening another virtual door into your business. And even for those who are slow to change, there is a more obvious and pressing reason to register names in these new domains: no one wants to find out that their name is gone in the top-level domain that describes their industry.

W H AT N E X T ? So what should I do after I have a website that reflects my marketing goals, and web addresses that provide easy-to-find front doors into my business? Getting a band of loyal followers is typically viewed as key. Having a band of dedicated followers can generate that effect which used to be called “word of mouth.” And, as Scotland’s largest independent brewery BrewDog has already seen, harnessing hardcore fans through crowdfunding pays real dividends. In an effort to build a new brewery they started selling shares in their “Equity for Punks” program, which has already earned them over £1.5 million from fans who not only love their beer, but also what they’re doing for craft brewing in Scotland.

www.brewdog.com/lowdown/blog/meet-theequity-for-punks-shareholders-2

Does this mean every business should go overboard with Twitter, LinkedIn, Facebook, and Instagram to build their followers? It depends on your target market, how addressable are they, and how relevant the followers are to what your business is actually doing. For a business to consumer venture, the reasons for engaging with social should be self-evident: fans equals word-of-mouth equals sales. And for business-to-business (B2B) companies, they’re increasingly missing a trick if they don’t recognize that their audiences can also be reached via social activity. The skill is doing it appropriately. In the B2B context, as the greatest professional hawks (recruiters) have already learnt, the ability to sift through social profiles can bring important insights that you need before you reach out to people. That should help you adopt the right voice, meaning social media can act as both a great research tool as well as an engagement one. And most importantly, testing on social media can start in the hundreds of dollars range rather than thousands. To conclude, your online presence can act as a branding device through which you can clearly signal to the outside world what your business and products are truly about, which in turn helps SEO. And when combined with smart sales and marketing activity, it can allow you to be recognised as a real innovator, a true winner, in your field. Toby Hall, CMO at Minds + Machines Group, and veteran of supporting fasttrack businesses, looks at how the changing world of the Internet is providing real opportunities for new entrants, as well as existing players, even in the most mature marketplaces. For more info email toby@mindsandmachines.com.

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GROWING G R E A T WHISKEY W H ISK EY AC R ES DIST I L L I NG C O. WRITTEN BY CHRIS LOZIER

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PHOTOS BY BRIAN CHRISTENSEN

armers have to worry about a lot of acronyms—EPA, FDA, USDA, OSHA and MOM, to name a few. So when a farmer willingly adds TTB and FET to that list, they must have a good reason. For Walter Farms and Whiskey Acres Distilling Co. in DeKalb, Illinois, that reason was bourbon, or more accurately, bourbon made with their own corn. Fifth generation farmer Jamie Walter and his father Jim wondered if there was a way to create a value-added product with their high quality corn. At the same time the regulatory climate for distilling

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in Illinois was improving, so Jamie, who had previously worked in the wine industry, pitched the idea of a distillery to his father and Nick Nagele, their seed broker. “Jim has farmed here for 45 years and has always been frustrated by the thought that he’s raising very high quality grain and it’s all going west to be exported, fed to cattle and hogs, or turned into fuel ethanol,” tells Nagele. “Meanwhile we’re here 60 miles west of Chicago, the third largest metro center in the United States, and we’re not doing anything to capitalize on that.”

So, as farmers are apt to do, they did something about it. Using their diverse portfolio of talents and experience, they built a distillery in the middle of the farm featuring the grain they knew so well.

Stay Tuned…

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FROM SEED to SPIRIT “We plant it, grow it, harvest it, store it, clean it, mill it, mash it, ferment it, distill it, barrel it and bottle it right here,” tells Nagele. “This is true grain-to-glass—I’m not buying corn from somebody else.” Making great bourbon isn’t easy. With so many variables— technique, water, climate, yeast, barrels, rack houses—you need to control every factor that you can. This is where Whiskey Acres has a strong advantage: they control the entire process. “We understand that not all number 2 yellow dent corns are created equal,” explains Jamie. “We’re able to source the background genetics of hybrids that have certain characteristics that we think make a superior whiskey.” The Walters plant those genetics and trace them through harvest then separate that corn from the rest, and only the best five percent of their harvest goes to the distillery. They clean the grain aggressively, to the point of eliminating small and broken kernels, then they dry it in equipment Jim’s father built in the 1950s. Next, they mill it in a hammer mill, attach a spout to the half-box of grist, and pour it directly into the mash tank. It takes just eight minutes to fill the 500 gallon mash tank with water and add the 750 pounds of milled corn. This efficient system is not only convenient, it also produces high alcohol yields because they handpicked their grain for quality, sending the smaller, broken, and less-fruitful kernels down the road to the fuel ethanol plant. Beyond yield and time efficiencies, Jamie says there’s also a flavor advantage to their system because of the corn varieties they use and the fact that the starches in the freshly milled grain have had very little air exposure. “We want to be authentic and we don’t think it’s just fluff,” says Jamie. “We think there is a qualitative difference in our product. It actually matters.”

TECHNOLOGY and TRADITION

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Whiskey Acres is built on family history, ingenuity and stewardship. Recycling wood and stone from their 150-year-old dairy and sheep barns and grinding their grain with their salvaged mid-century hammer mill, these farmer-distillers don’t let much go to waste. “As farmers and stewards of the land we try to do everything in a very sustainable way,” explains Nagele, who says they capture the heated water coming from the still cooling jacket in a hot water tank, then use it for their next cook. “I’m starting out with 150 degree water that fills in eight minutes that didn’t get dumped

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down the drain or have more BTUs spent towards it.” Their traditional “waste not want not” methods are also driven by new technology, like their combine harvester, which has more lines of computer code than a Boeing 747. Even though Jamie runs the machine, he doesn’t drive it much—GPS and robotic steering take care of most of the heavy lifting. This technology saves time, fuel and labor, but the GPS information also offers a distillation advantage: they can isolate grains by soil conditions, creating an opportunity for terroir-focused whiskey. “We can pick out corn from specific soils, just like a vineyard,” tells Jamie. That technology helps them calculate distilling production, too. For every acre of grain, Jamie knows that they can produce roughly 600 cases of bourbon, and this detailed information is becoming increasingly important to Whiskey Acres as they are growing faster than expected. In their first seven months of business, they hired seven new employees, all the while working seven days a week themselves. One of the new faces is distiller Daniel Hammerschlag, who previously worked with Tuthilltown Distilling in New York and GrandTen Distilling in Boston. Hammerschlag recently moved to DeKalb from Edinburgh, Scotland, where he is finishing a master’s degree in distillation at Heriot-Watt University. His education was focused, of course, on single malt, but Hammerschlag is adapting those principles to corn and bringing a unique perspective to Whiskey Acres. Hammerschlag doesn’t have to reminisce about malt, though, because Whiskey Acres uses 10 percent malted barley in their mash bill, along with 15 percent winter wheat. Nagele says the wheat helps to soften the corn profile, and the malt helps to keep the yeast happy, but at 75 percent corn, this is definitely bourbon. “We really focus on the grain,” explains Nagele. “We grow corn, we make whiskey out of our corn, and we want you to know that.”

THROW OPEN the DOORS With an on-site tasting room featuring cocktails that were designed to be recreated at home and daily farm and distillery tours, visitors get the complete seed-to-spirit experience at Whiskey Acres. “We can throw open the doors and let the consumer see everything,” tells Jamie, who says visitors are often just as excited about the farm as the distillery. Nagele says that for him, introducing people to the farm is even better than making whiskey, but nothing, he says, tops selling whiskey. “When I call to sell farmers seed, they don’t always answer my first phone call,” says Nagele. “When I’m selling whiskey, the phone rings off the hook.”

Whiskey Acres Distilling Co. is located in DeKalb, IL. For more info, visit www.whiskeyacres.com or call (844) 494-4753. WWW.ARTISANSPIRITMAG.COM

MOLECULAR BIOLOGY FOR IMPROVED FERMENTATION EFFICIENCY UNDERSTAND HOW YEAST CONTRIBUTE TO THE FLAVOR PROFILE OF DISTILLED SPIRITS W R I T T E N B Y J O Y G H O S H , P H . D . A N D P AT R I C K H E I S T, P H . D .

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ver the last several decades, the study of living organisms on a molecular scale has helped improve our understanding of how things work at the cellular and sub-cellular levels. This has led to some very important discoveries resulting in organisms with improved function, such as higher yielding grain crops or microbes capable of producing unique and valuable enzymes. Although distilled spirits production is often carried out using ageold techniques and protocols, there is a lot that can be learned and applied from recent discoveries in molecular biology. Here, we look at how recent advances in molecular biology are being used to improve beverage alcohol production and the potential for new product development. We will focus primarily on the yeast, Saccharomyces cerevisiae, whose performance in fermentation directly impacts flavor of the distilled spirit as well as alcohol production and yields. Although there is a clear difference between how beer, wine, and distilled spirits are made, there is one common factor—all of them involve yeast, a unicellular eukaryotic organism. The global yeast market is expected to reach around 5 billion U.S. dollars by the end of 2016, with a significant market share of that being brewer and distiller’s yeast. With the exception of any contaminating bacteria or wild yeast, it is the only living ingredient in the entire fermentation process and greatly influences the quality of fermented beverages.

PHOTOGRAPHS PROVIDED BY FERM SOLUTIONS, INC.

Two key factors in beverage alcohol production include yeast performance during fermentation, which directly relates to alcohol production and yields, and flavor profile of the resulting distilled spirit. Both of these factors are yeast strain specific and changes in fermentation conditions and/ or the extracellular environment of the yeast cells can induce stress and alter cell performance as well as affect the desired flavor profile of the alcoholic beverage. Recent studies in yeast molecular genetics have revealed that there are several cellular metabolic pathways that are associated with yeast performance and flavor/ aroma production. Manipulation of such pathways could result in the development of yeast strains capable of better performance under stressful fermentation conditions, and at the same time regulate or influence flavor profiles.

TYPES OF YEAST STRESS FACTORS DURING FERMENTATION Survival and productivity of yeast during fermentation is dependent on their ability to respond and adapt to a changing environment. This is especially true in the later stages of fermentation when alcohol concentrations are high and sugars have been depleted. In addition, there are other stressors which WWW.ARTISANSPIRITMAG.COM

can affect yeast performance and reduce fermentation efficiency and yields. Common stresses experienced by the yeast include high sugar concentration (osmotic stress), ionic stress (sodium or potassium imbalances), elevated temperature, high ethanol concentrations, low external pH and the presence of weak organic acids like lactic and acetic, among others (Figure 1). The ability of yeast to deal with these stressors has been linked to regulation of several specific metabolic pathways. One of the most common stressors often originates from an imbalance of the intracellular pH and ion concentrations, which affect the coordinated regulation of several cellular signaling pathways controlling normal yeast cell physiology. Stressed yeast cells require more ATP (adenosine triphosphate; a form of stored energy) to counteract stress-associated damages, therefore, the optimal concentration of ATP required for regular growth of the cell is compromised. In other words, under stressful conditions, the yeast use more energy to do less work compared to an optimized environment. Thermal, oxidative and ionic stresses induce macromolecular cellular damage by creation of reactive oxygen species. Fluctuations in the cellular environment may result in oxidative stress in industrial yeasts. Although fermentation is performed under anaerobic conditions by yeast cells, oxidative stress may occur in more highly oxygenated areas of the process such as during yeast propagation or in the beer well. Experiments performed under high oxidative stress showed an increase in catalase enzyme activity as well as glycogen and trehalose accumulation, which function as stress-reduction mechanisms in the yeast. During the production of active dried yeast, the yeast cells are subjected to dehydrating conditions (a stress factor), which affects the integrity and functionality of the plasma membrane, reduces endocytosis and intracellular trafficking of proteins, and results in the accumulation of both organic and inorganic ions, among others. Most if not all of these changes can temporarily or

(FIGURE 1) Yeast cells encounter several biological, chemical and environmental stresses during fermentation.

TEMPERATURE (>35Ë&#x161; C)

LACTIC ACID (>0.4%)

ACETIC ACID (>0.1%)

SYNERGISTIC STRESS

MORE DETRIMENTAL EFFECT WWW.ART ISANSP IRITMAG.COM â&#x20AC;

terminally disable enzymatic activities ultimately resulting in the formation of dangerous free radicals, which are known to directly modulate several transcription factors including NF-kB, which is tightly regulated with stress response pathways to maintain cellular homeostasis as well as regulate several protein kinase cascades that influence the regulation of multiple stress tolerance metabolic pathways in yeast. Thus, a more clear understanding of what role different stresses have on the molecular machinery of the yeast has implications not only in the production of distilled spirits, but also the production and manufacturing of active dried yeast strains. Moving beyond yeast propagation and into fermentation, osmotic stress stimulates cell shrinkage followed by ionic imbalances in yeast. Water loss from the intracellular environment results in severe cellular damage including, but not limited to, disruption of cellular structural assemblies, solute imbalance, pH change, reduction in storage potential for biologically important secondary metabolites, accumulation of toxic materials and many more. Altogether, these damages result in reduced metabolic activity in yeast, subsequently causing poor performance during fermentation, which can affect yields (the amount of alcohol produced per bushel of grain or per unit of substrate). Below, we will discuss possible preventive measures that a yeast cell takes to combat these damages and restore normal cellular activities.

MOLECULAR BASIS OF YEAST STRESS TOLERANCE MECHANISMS

Yeast cells exhibit a number of cellular responses to counteract the aforementioned stresses. These include cell signaling, and transcriptional and translational regulation of gene expression. The efficiency of these processes under stressful conditions affects the commercial utility of the yeast. Naturally, screening of new yeast strains, which are both stress tolerant and simultaneously able to produce higher alcohol, are of extreme interest for alcoholic beverage producers. Knowledge of yeast stress tolerance mechanisms helps us pH understand how they adapt in a rapidly (>5) changing fermentation environment and maintain metabolic activity. Like any other eukaryotic unicellular organism, yeast cells evolve to survive OSMOTIC these stresses by rapidly changing PRESSURE their internal molecular and cellular (>38%) machinery, usually by reprogramming genomic expression. Alteration of genome expression results in the onset NITROGEN of several different specific/ nonDEPRIVATION specific stress tolerance cell-signaling (>150 ppm FAN) pathways, which helps the organism to survive during periods of stress.

(FIGURE 2) PCR amplification and protein expression profile of commercial distillerâ&#x20AC;&#x2122;s yeast stress response genes in a 72 hr. fermentation period.

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There are several basic catabolic mechanisms that yeast cells use to withstand stress. For example, during nutrient deficiency, which results in low supply of energy from the extracellular environment, these stress response pathways are triggered and regulated either at the transcriptional (mRNA) and/ or at the translational (protein) level. Different transcriptional elements are thought to trigger the stress tolerance signaling cascades in yeast, including heat-shock elements, stress response elements and others. How these stress response mechanisms are coordinated in yeast is poorly understood and extensive research is underway to understand the biology more clearly. This can be difficult, as the majority of these stress responses and respective counteractive pathways are overlapped at their regulation level. For example, multiple stress response signaling pathways are triggered and regulated by a single kinase protein at the upstream signaling cascade. In addition, specific gene products can act as stress specific responsive elements. As further example, the Hsp104 protein confers thermal tolerance in yeast, DDR2, a multi-stress response protein is responsible for DNA damage repair, and specific protein kinase enzymes regulate oxidative and osmotic stress responses in yeast cells. Although recent advances in biotechnology helped us to understand these mechanisms in detail, the caveat is that the majority of the work has been done and shown in laboratory strains of S. cerevisiae under ideal fermentation conditions rather than on commercial yeast strains in a production environment. The actual fermentation environment of an industrial setting is likely more stressful for yeast cells, where synergistic stresses accumulate and the organism has to deal with several stress factors at the same time. Thus, simulating a real life fermentation environment, and studying the corresponding yeast molecular mechanisms in detail pertaining to any particular stress stimulus is of particular interest to Ferm Solutions and other researchers. As discussed earlier, exposure to numerous stress factors during fermentation can cause the yeast cells to reprogram genomic expression. This altered transcriptome changes the regular metabolic activities in yeast cells in general, as a result of which the metabolic profile of the organism exhibits variations including

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the fermentation-favorable phenotypes. Production of aroma-active substances is one of them and also of great interest in the beverage alcohol industries, discussed in the following section.

MOLECULAR BIOLOGY OF YEAST AND ITS RELATION TO THE FLAVOR PROFILES IN BEVERAGE ALCOHOL Fermentation is a complex biochemical process. While the major outcome of yeast-mediated fermentation is ethanol, there are other minor cellular reactions, which become active as secondary pathways and the organism makes a wide range of aroma-producing metabolic byproducts. Production of these chemicals is different from one yeast strain to the next and can be further manipulated by varying conditions like temperature, pH, sugar content, fermentation time, etc. These aroma-associated secondary molecules are a key source of flavor in distilled spirits. There are several groups of flavor-active secondary metabolites that are produced by yeast cells during fermentation. These include organic acids, sulfur compounds, higher alcohols, volatile esters and many others. Although which group confers the majority of aroma in fermented beverages is still controversial, recent studies have demonstrated different molecules as being key in the flavor profile of the fermented product. The specific flavor of a spirit is associated with the fermentation/ environmental condition, nutrient availability, strain specificity, and regulation of gene expression. Also, concentration and significance of different secondary metabolites are unique in the case of beer, wine, liquor, and other beverage alcohols. In the case of beer, higher alcohols are very important aroma producing molecules. These higher alcohols have more carbon and hydrogen molecules than ethanol, and essentially provide the fruity flavor in beer. Organic acids also play a key role in flavor production. The amino acid metabolic pathway is very crucial in this regard because yeast cells use amino acids for a variety of physiological and biochemical pathways required for cell survival and cellular integrity. Some of these amino acids used by the yeast WWW.ARTISANSPIRITMAG.COM

cells convert into oxo-acid and/ or keto-acid based on specific metabolic pathways, conferring a specific aroma to the beverage product. Aldehydes and volatile esters are other crucial components accountable for specific flavor in the fermented product and in distilled spirits. Acetaldehyde is a common aldehyde produced during fermentation as a result of high cellular metabolism. Esters are responsible for fruity flavor in beer and they consist of alcohols and fatty acids. Some common flavor-producing esters include ethyl acetate (solvent aroma), phenylethyl acetate (flower aroma), isoamyl acetate (banana aroma), and many others. Formation of ester compounds are catalyzed by acyl-coenzyme A and thought to be temperature dependent, and work is underway to exploit these pathways. Finally, sulfur compounds are another important substance that lends to flavor production in alcoholic beverages. Hydrogen sulfide (H2S), and Sulfur dioxide (SO2) are two examples of aroma-associated sulfur compounds. Sulfur compounds often come from the fermentation ingredients and are volatile in nature. Sulfur is also a cofactor required for many yeast cellular metabolic pathways for maintaining cell homeostasis, including amino acid and nucleic acid biosynthesis, and the sulfur compounds are the byproducts of such pathways. In distilled spirits, copper distillation equipment is used to react with undesirable sulfur compounds pulling them out of the vapor. All of these aroma-active secondary metabolites are biologically significant macromolecules that are either the product of yeast metabolic pathways and/ or act as a cofactor of such pathways.

WORK USING RECOMBINANT DNA TECHNOLOGY TO IMPROVE YEAST PERFORMANCE IN FERMENTATION Research to study various cellular mechanisms in industrial yeast in wine/ distillery fermentations has revealed very promising, fundamental, and critical information. Studies involving strains of wine yeast have shown expression of stress response genes after 2-4 days in fermentation. Additionally, cellular analysis revealed the presence of specialized stress organelle accumulation in wine yeast during fermentation. Our studies at Ferm Solutions/ Wilderness Trail Distillery demonstrate stress response pathways in industrial ethanol yeast under specific alcoholic fermentation conditions (Figure 2). Intensive bioinformatics and comparative analysis revealed that the same upstream signaling cascade might regulate autophagy, a unique self-degradative biological pathway induced during synergistic stress and the oxidative stress pathway in yeast. After careful examination of the biological functions of several autophagic and oxidative stress tolerance genes (Source: Saccharomyces genome database and published literature), several candidate genes were identified for further study of the signaling processes in distiller’s yeast. The results indicate that the specific stress tolerance pathways were “turned on” in commercial yeasts under stressful fermentation conditions (in this

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case, high temperature), even at the early stage of fermentation when the stress factors have just started to accumulate. Similarly, several attempts have been made and significant advances have been reached towards the dissection of yeast molecular and cellular pathways conferring flavor-associated secondary metabolite production in alcoholic fermentation. Production of flavor molecules is dependent on cell growth and metabolic rate, and they are tightly regulated by the differential gene expression based on the metabolic needs of the yeast cells. For example, the enzymes responsible for ester synthesis in yeast, alcohol acetyltransferases (AATases) are well characterized. There are different classes of AATases and the gene(s) corresponding to each AATase have been identified. These genes are well conserved in the yeast, S. cerevisiae strains (Figure 3). However, it is difficult to predict which particular gene(s) is/ are responsible for which particular ester-related aroma production, as all the studies associated with our gene of interest were done using different commercially available yeast strains under diverse fermentation conditions. Moreover, studies have revealed that these genes may be responsible for the production of other volatile esters as well, apart from specific AATases. Research is currently underway to understand how manipulation at the molecular level would allow the regulation of these flavor molecule encoding genes to favorably alter the flavor profile in distilled spirits or affect how barreled whiskies age, for example. Genetic manipulation of yeast has been conventionally performed through classical strain hybridization or mating. While recent advances in DNA technology allow us to study the yeast cell biology in detail, the molecular basis of yeast stress tolerance is still poorly understood. A major drawback to using

SC1

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(FIGURE 3) PCR Amplification of acetate ester synthesizing gene from different commercial distiller’s yeast strain. 83

recombinant DNA technology to manipulate commercial yeast strains is the lack of detailed genetic information of industrial strains. Although the genome of laboratory strains of S. cerevisiae has been extensively studied, only 30 percent of the gene functions were characterized and the function of the remaining gene pool is still unknown and requires further research. This is more difficult in the case of industrial yeast strains, where multiple genes could be responsible for a single stress tolerance phenotype. Assigning the gene functions in commercial strains, therefore, requires intensive genetic, biochemical and molecular biological research. Ongoing gene and protein characterization of S. cerevisiae, predicting their biological functions, along with studies of molecular and cellular biological attributes will prove beneficial for engineering recombinant yeast strains for more cost-effective fermentation and flavor development.

CONCLUSION

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In summary, recombinant DNA technologies have great potential for engineering more stress-tolerant and flavor-active commercial yeast strains for fermented beverages and distilled spirits. Although classical genetic approaches are currently a popular strategy to manipulate the biological traits useful for commercial purposes, this method has limitations when it comes to the more controlled regulation of engineered genes/ proteins controlling a particular phenotype such as stress tolerance or flavor profile. There is high demand for developing more stress-tolerant yeast strains, and the increasing knowledge of the yeast genome will be helpful in understanding the molecular and cellular basis of the signaling cascade(s) that play into stress tolerance. More conclusive information is needed to understand the regulatory mechanisms of biological traits of interest in commercial yeast strains. Expression of stress-tolerance proteins is evidence that yeast respond to stress during alcoholic fermentation. Autophagic and oxidative stress marker genes are up-regulated during fermentation, and transcriptome and proteome results indicate that fermentation-induced stress factors play a key role in yeast viability and overall fermentation potential of commercial yeast strains. Flavor substance encoding genes were identified and initial characterization serves as a foundation for future research on how we could utilize these pathways to regulate the flavor profile in the fermented beverage or distilled spirit. Further studies are ongoing to characterize genes associated with yeast stress responses and aroma-active cellular pathways in beverage/ distillery/brewery fermentation environments. This will enable us to determine the optimum fermentation conditions for a particular yeast in the presence of stressors and how to more accurately manipulate flavor profiles for better quality distilled spirits. Patrick Heist, Ph.D. is chief scientific officer of Ferm Solutions, Inc. and cofounder of Wilderness Trail Distillery. For more information visit www. ferm-solutions.net or call (859) 402-8707. WWW.ARTISANSPIRITMAG.COM

BAD HABITS COMMON GAPS ON THE ROAD TO COMPLIANCE WRITTEN BY DONALD SNYDER

etting the approved Distilled Spirits Plant (DSP) application was the easy part. Keeping ongoing operations compliant with the TTB is the hard part. Somewhere between running the still, reordering raw materials, bottling for orders, providing directions to staff, meeting with distributors, and manning the gift shop, distillers must maintain meticulous records of operations and taxable withdrawals from bond. For many distillers, hastily scratched production notes or a simple excel file may help them fill out the month-end reports, however these notes alone may not be sufficient in the event of an audit. The TTB wants to ensure everyone pays the correct amount of tax and have set up basic ground rules to ensure everyone stays compliant. Here are some common compliance gaps that distillers and owners should look out for... WWW.ART ISANSPIRITMAG.COM

OVERLY COMPLICATED B U T INCOMPLETE PRODUCTION RECORDS

It is common for distillers to have copious notes on their daily mashing and distilling processes. Pages upon pages of notes on the day’s cooking temperatures, enzyme introductions, pH levels, brix measurements, vapor temperatures, spirit “cut” proofs, and other observations are great for ensuring consistent quality and to track issues. However, if a distiller cannot easily and quickly identify how many pounds of fermentables were used and how many proof gallons they made from the run, the notes are no help at the end of the month or during an audit. Compliant gauging records from a distillation run must

also include the supporting calculations to how the proof gallons were gauged such as scale weights, corrected wine gallons or liters, hydrometer readings, temperatures, applicable correction factors, and other notes. Keeping streamlined production gauging records separate from internal operational notes will not only simplify the month-end reporting but make an internal audit much easier.

NO T A N K

LOGS

Most craft distilleries do not have large, permanent storage tanks. However, even for mobile totes, distillers must keep a tank log of deposits and withdrawals. Source and destination tank identifications should be a part of every record and should create a traceable story of what happened to a batch of distilled spirits along its path to

the bottle. If there is an issue reconciling on-hand inventory, there should be a tank history that helps clarify how much was deposited into a tank and how much was withdrawn. In the event of a product recall, the distiller must quickly trace a batch’s history to identify where the issue came from and how many batches were affected.

MISSING T R A N S F E R IN BOND DOCUMENTS

For distilleries that transfer in beverage spirits from another bonded distillery, it is required that the shipper send complete Transfer In Bond (TIB) documentation. These documents should contain the spirit types, proof gallons, proofs, container information, and other gauge data for the spirits shipped. If distillers don’t receive this paperwork with the shipment, they should push for the shipper to send them the documents as soon as possible. Always keep hard copies of any Transfer In Bond documents for spirits received into the

distillery. In the event there is an issue reconciling on-hand inventories, having quick access to any spirits transferred in is crucial.

NO B A T C H I N G RECORDS

Walking into a distillery and seeing piles of notebooks filled with distillation notes is great, as long as that attention to detail is translated into their batching records for flavored or infused spirits. The batching and blending records are to prove that a batch is in compliance with the ingredients and steps listed on the approved TTB Formula. Without meticulous batching records, there is no way to prove that the recipe was made within the specifications of the approved formula. Included on batching records should be the types and gauges of the spirits used, quantity of all non-spirit ingredients blended, the approved TTB Formula Number, the DSP number, and other notes. It is a good idea to print and have accessible the approved

TTB Formulas to verify every batch and recipe is made within tolerance. In the event of an audit, the TTB will want to see a printed copy of formula approvals as well as batching and blending records.

INSUFFICIENT BOTTLING RECORDS

As important as it is to keep accurate gauging and batching records, air-tight bottling records are the key to staying compliant. The first thing an auditor is going to do is reconcile on-hand case good inventories against what was withdrawn from bond and what was bottled. Not keeping close tabs on what was bottled is going to lead to issues. Loose controls over bottling records can lead to shortages or losses which can be tax-liable if a distiller cannot track where the finished inventory went. Bottling records must include dates, DSP number, bottling tank numbers, starting proof gallons, batch proof, number of cases and proof gallons bottled, bottling

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losses, and other notes. In addition, to ensure that bottles leave the distillery within TTB tolerances, distillers must take samples throughout the bottling run and document the fill and proof checks. If the bottle is pulled from the field and tested by the TTB and is found to be out of compliance, the distillery could be liable for penalties and back taxes. Having the documented fill and proof checks provides some protection that you have done your due diligence to ensure compliance. Finally, every case from a bottling run must be uniquely serialized. If a case in the market is found to be out of compliance, it must be traceable back to a batch and bottling run.

INCOMPLETE

W I T H D R AWA L S FROM BOND At the end of the day the TTB has one core objective: collect the correct amount of tax on the cases and bottles withdrawn from bond. Everything distilleries track, gauge, and report lead up to this. If the cases or

bottles leave the bonded space, an excise tax of $13.50 per proof gallon (for most distilled spirits) must be paid at the end of the tax period. This includes sample bottles, bottles for the distillery’s non-bonded tasting room, gift shop sales, any distributor shipments, and any other withdrawal. A distiller’s job is to track the date, invoice number, quantity, and total tax determinations due on the cases that leave the bonded space as part of the Daily Reports. It is not acceptable to estimate how many cases were withdrawn by looking at gift shop or tasting room sales. The tax is due on a case when it leaves the bonded space and not when it is eventually sold from the gift shop, which could be in the next tax period. To prepare for an audit, distilleries should be able to quickly pull a report of how many cases and proof gallons were withdrawn from the distillery each tax period and how it matches up with the monthly operations reports and federal excise tax returns. On a positive note, the TTB wants everyone to be successful. The TTB wants to continue to collect tax revenue. However, the

penalties for not following the regulations are stiff and it is the responsibility of every craft distiller to play by the rules. Every box on the monthly operations reports represents the aggregate of all the transactions performed over a month. In the event of an audit, the distillery must produce clear and succinct support documentation for each of those reported numbers. Support documents like production gauging records, tank logs, batching notes, bottling records, and withdrawals from bond, if in the correct format, should easily reconcile against each month’s report. Stacks of paper notes or a hard to follow spreadsheet may not suffice and may make an internal audit much longer than expected. A distiller’s job seems to be never-ending but it is critically important to keep compliance and transparency at the forefront of everything they do.

Donald Snyder is Founder and President of Whiskey Resources LLC and Whiskey Systems Online. For more information, visit www.whiskeysystems.com or www.whiskeyresources.com or call (815) 382-0021.

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Our only Craft IS PRODUCING THE FINEST ALL NATURAL CORKS IN THE WORLD

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for bottle design, decoration, and secondary packaging components.

Email: JCraig@saxco.com

Call: Jason Craig at 502-326-8456

LEGENDARY

STORIES Nelson’s Gre en Brier D ist illery

WRITTEN

AMBER

CHRISTENSEN-SMITH

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PHOTOGRAPHY

DANIELLE

AT K I N S

PROVIDED BY NELSON’S GREEN BRIER DISTILLERY

tories are often the very element driving the passion that electrifies our minds and makes our fingertips dance through the tasks in our day-to-day struggles and celebrations of life. They make our spirits sing to the heavens and drive forward when we lose hope, and they verify our justifications in making our wild decisions. The stories are even better when they’re not tall tales, but legends that give us reason to dig in with our heels and never give up. Such is the story of Nelson’s Green Brier Distillery.

It’s difficult to explain a more serendipitous occasion as the Nelson brothers discovering their history on an unassuming outing with their family and deciding there was nothing more they were meant to do than to continue the great American family distilling business in the beautiful area of Nashville, Tennessee.

DEPTH.

BREADTH.

The Nelson family legend begins with Charles Nelson, an immigrant from Germany, who moved with his family to America in the mid-1800s. With his father thrown overboard during a fateful storm, Charles and his brother were forced to become the leaders of their home. The boys didn’t have many options so they started simple by making candles and soap to help their family survive. Despite the odds Charles Nelson grew his skills and started seeing success. He learned about being a butcher and a distiller and then steadily grew a grocery business that was known for selling coffee, meat, and whiskey. Charles’s success continued to grow and he became one of the leading distillers in Tennessee, selling 380,000 gallons of whiskey in 1885 alone. He brought jobs to many people and was one of the first distillers to bottle his whiskey—not just sell it from a jug or barrel. Charles died in 1891, and his wife Louisa assumed control of the distillery until unfortunately, like so many others, they were forced to shut down the distilling operation in 1909 due to Tennessee's state-wide prohibition.

Flash forward to 2006 when Andy and Charlie Nelson—greatgreat-great grandsons of Charles Nelson—were out on a day with their father to pick up a quarter of beef in Greenbrier. When they came across a historical marker on the side of the road indicating that Nelson’s Green Brier Distillery once stood one mile away, it was as if lighting had struck them in their tracks. Not previously knowing any connection to the history, when they arrived at the butcher in Greenbrier that hot summer day, they asked if he knew any history of the Nelson family and the distillery. “When we got to the butcher’s place, he showed us some of the original distillery’s buildings across the street, so naturally we checked them out,” shares Andy. “The original spring was still running so of course we went and took a sip.” The curiosity of the stories enthralled them, and they continued to explore in town at the Greenbrier Historical Society. “Among other things, we saw two original bottles of Nelson’s Green Brier Tennessee Whiskey. Right then and there we knew what we were going to do.” Nine years later, the Nelson brothers are continuing

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PERSEVERE.

are in tune with their family’s traditional Tennessee Whiskey. “It was one of the most successful distilleries in the country—and thus in the world—in its day, and we want to emulate that,” Andy Concludes. “This distillery is bigger than ourselves.”

Andy and Charlie knowing exactly what they were supposed to do in life was one thing, but capital was another. “Whiskey takes time to age, which makes it difficult for us to raise funds,” tells Charlie. The Nelson brothers found lots of people willing to listen to their legendary story, but the fact that they had no experience, were young, and had few assets, made it difficult to gain any hold on funding. “Our family leveraged everything we owned in order to personally guarantee a loan to get started working with a contract distillery,” shares Charlie. The Nelson brothers contracted with a distillery at first in order to generate revenue and because they were unable to afford equipment. Their passion and perseverance paid off. They have seen great growth and now have their own distillery in Nashville, TN that is booming thanks to their attention to historical detail and their passion that is keeping them moving forward—despite typical business obstacles and learning curves in distilling and managing. “This is what we’ve devoted our lives to, and even though we don’t have business degrees and hadn’t ever worked in a distillery before, the motivation was always there,” says Andy. “I’ve realized that I’ll take passion over book smarts any day.” The Nelson brothers work hard to develop authentic spirits that

Currently, Green Brier is selling three products—a white whiskey, a bourbon, and a sherry cask finished bourbon. Their barrel-aged whiskey, which is not on shelves yet, is showing great promise in early tastings. “Our Nelson’s Green Brier Tennessee Whiskey recipe comes from the original recipe that our triple great grandfather used pre-Prohibition,” declares Charlie. “It is essentially what created the category of Tennessee Whiskey, and it was one of the largest and most popular brands of whiskey in the world before Prohibition.” The Nelson’s use two different mash bills and two different yeast strains in their Belle Meade Bourbon. To boot, they use the welldesigned and handsome original label used over 100 years ago on the bottles of this bourbon. Belle Meade has a high-rye content and is aged 6-8 years. “We are following in Charles Nelson’s footsteps as closely as possible, and we want it to be a versatile product that is just as good neat or on the rocks as it is in a cocktail,” assures Charlie. For their Tennessee Whiskey, they procure local non-GMO corn and wheat from a farm in Roberston County. Andy adds, “We are using the same mash bill that Charles Nelson used for his signature

their ancestor’s business with the original recipes of the family’s Tennessee Whiskey.

PRODUCTION.

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Tennessee Whiskey pre-Prohibition and it’s coming along quite nicely in barrels.”

RISK. Although they stick to their roots, the Nelson brothers had to come to terms with the beginnings of their product as a sourced product. “I’ve mentioned before that we are sourcing the whiskey that we use for Belle Meade Bourbon from MGPI,” shares Andy. “They will send us barrels and we will finish the aging process in our warehouse and do all the blending and bottling here as well.” While sourcing is not uncommon in the industry, distillers need to decide if it is the best decision for their business model. Andy and his brother are aware of the issues of honesty in marketing and agree it is important for spirit producers to be up front about sourcing their products. “We were very nervous about that issue when we first released Belle Meade Bourbon and it was a source of anxiety for us,” explains Andy. “But over time, we’ve recognized that people aren’t concerned as much about where your whiskey comes from as they are with if it tastes good. I also tend to think that honesty is a fine quality to have as a human being, and it leads to great returns, even if those returns are as simple as sleeping at night with a clear conscience.” With hard work, their product quality is improving, and they are moving towards a product that is not sourced as they grow their own distillery.

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PROSPECTS. The Nelson brothers are far from done. There is growth planned: a move to the original distilling site, and the impending release of their aged Tennessee Whiskey. “Because of our deep Nashville history and the fascination with whiskey in general that is growing every day, people have really embraced us and shown a great appreciation for the business we’ve built,” Andy explains. “That appreciation goes both ways because we understand without strong community support, it can be very difficult for any business to succeed. We love Nashville and the Nashville community has a tremendous pride in its own citizens and businesses and we try to keep that going.” Beyond relishing in the support of their community and working to pay back that commitment to the very same community, the Nelsons understand much about the driving force that makes them successful. They advise for new distillers to remember a key item: “You must have patience,” Andy stresses. “That advice has been proven true and I would repeat it. If you really believe in what you are doing, just be patient and stick with it.” Green Brier stands to continue its success due to the passion of the Nelson brothers, their supportive community, and their rich history that influences their ideas about distilling in modern times. Nelson’s Green Brier Distillery is located in Nashville, TN. For more info, visit www.greenbrierdistillery.com or call (615) 913-8800.

the

ALL-IN-ONE

SKID DISTILLERY

SPECIFIC MECHANICAL SYSTEMS WRITTEN BY CHRIS LOZIER

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PHOTOS BY AMANDA JOY CHRISTENSEN

ost distillers buy a still from one manufacturer, tanks from another, controls from someone else and so on. You can build yourself a custom distillery this way and typically get exactly what you want. But Reo Phillips of Specific Mechanical Systems of Victoria, B.C. says getting those separate components to work together and getting support when they donâ&#x20AC;&#x2122;t can be stressful, expensive and time-consuming. Phillips says Specific saw an opportunity to simplify this process, and with the help of Robert Cassell of New Liberty Distillery in Philadelphia, the team at Specific spent two years engineering, testing and building a standalone distillery that is self-contained on a skid.

92â&#x20AC;

The 240 gallon system is pre-plumbed, pre-wired and includes pumps and a control panel. Two standing platforms connect a fermenter/mash vessel, pot still, lyne arm, condenser, spirits safe, one 240 gallon low wines collection tank, one 90 gallon spirit collection tank and one 40 gallon heads/tails collection tank. Modeled after brewpub skid systems, it is a new concept in distilling. Two people with power pallet jacks unload the skid distillery out of a semi and put it where you want it. A local electrician supplies power to one connection and the whole unit runs off of that supply. You need an external boiler and chiller (a building is preferable, as well), but once you connect these WWW.ARTISANSPIRITMAG.COM

components you can start distilling. “This package is designed around you starting out as a craft distiller, saying, ‘I want to make a little bit of everything, I don’t want to compromise, but I only have so much money to work with,’” explains Cassell. “You have all these wants and needs, and we took all those things into consideration designing this 240 gallon startup system.” The setup is convenient—you can put it anywhere you can slide it—and they engineered it to be as short as possible, too, so you don’t have to find a building with a tall ceiling to fit a towering still column. If you want the column, though, Specific has one that bolts on top, and Phillips says that most distillers choose that option. The standard package comes with two heads and two lyne arms which provide three lyne arm configurations for a total of six head/lyne arm configurations which the distiller can singlehandedly change with the on-board hand-crank crane. Each of the interchangeable components fit the same flanges so no extra adapters are needed. Optional components are available, too, like a deflegmator, thumper and extra heads and lyne arms, making the system customizable yet simple to work on. The setup also includes built-in features which save space and money. The mash vessel can be heated or used for two levels of cooling, eliminating the need for a separate cooling device. The heat recovered from that cooling can then be reused for cleaning or heating the next mash. “You don’t have to do it as a startup, but when you get to that point, the option’s there,” says Cassell.

BUILT WITH PURPOSE

Cassell studied distilling at Heriot-Watt in Edinburgh, Scotland, and later co-founded Philadelphia Distilling and New Liberty Distilling. With his background in traditional distillation and his experience as a small batch distiller, Cassell says he kept one thing in mind when helping Specific design their system: What do I wish I had? “When it comes to the functionality and what needed to be done and what our system needed to look like we relied immensely on Robert Cassell,” tells Phillips. “We wanted to know what the industry really needed—where’s the gap, what’s missing right now, what’s everybody else doing and what can we do different.” It was felt that there was a gap between the larger stills from the long established still manufacturers, which could be cost-prohibitive for a startup, and the smaller, less expensive stills from the newer small still manufacturers, many of which are fabricated outside North America. For Specific, this middle ground was a natural fit. In 1986, a welder and a machinist founded the company after doing some work for breweries. They began building brewing equipment and eventually put it all together and built entire brew systems, much like this distillation setup. Today, they are the leading manufacturer of brewing systems in North America, with 115 employees working two shifts. “Because they have all these assets, the talent pool and capability,

ROBERT CASSELL & REO PHILLIPS

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“

We focus on understanding our customers’ needs and take pride in delivering a system that will work for their desired use. That’s more important than just shipping them a system and saying ‘You’re on your own, figure it out.’ That’s just not who we are.” — REO PHILLIPS

it’s a perfect recipe and platform for innovation,” tells Cassell. At 240 gallons, the system produces the current average output of US craft distilleries, but if you want to expand, Specific offers additional fermentation tanks of various sizes to scale up production. Cassell says that a distiller can have confidence in the system’s capability, flexibility and safety, and the ability of their employees to use it effectively, as well, because they tested each component under extreme conditions. “To Specific’s credit, it took two years to make the best product possible,” explains Cassell. “They didn’t just put something out there that wasn’t ready.” Everything within the radius of the still is explosion-proof. That not only makes it safe, it also means distillers will have an easier time finding insurance and passing local fire code inspections. The support process is also simple because Specific knows exactly what you’re working with when you call so you don’t have to swap calls between different manufacturers to solve a problem. Classes and workshops are also available at New Liberty Distillery in Philadelphia where Cassell uses the system himself. “We want to work with our customers,” tells Phillips. “We focus on understanding our customers’ needs and take pride in delivering a system that will work for their desired use. That’s more important than just shipping them a system and saying ‘You’re on your own, figure it out.’ That’s just not who we are.” Distillers have a lot of reliable equipment manufacturers to choose from, large and small. Though Specific’s all-in-one system isn’t the right choice for everyone, for startup distillers that want turn-key flexibility or experienced distillers looking to expand or simplify their operations, this innovative system is worth looking into. Specific Mechanical Systems is located in Victoria, British Columbia. For more info, visit www.specificmechanical.com or call (250) 652-2111. WWW.ARTISANSPIRITMAG.COM

MAKE A

LASTING IMPRESSION WITH THE RIGHT TASTING ROOM GLASSWARE WRITTEN BY CHRIS LOZIER

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PHOTOGRAPHY BY AMANDA JOY CHRISTENSEN

hen someone first visits your distillery, the brand image they develop that day will drive their opinion of your spirits in the future. A lot goes into that experience, and while the glassware you are serving samples in may seem like a small detail, it is actually one of your best opportunities to make your spirits shine. But where do you start? Glass options seem endless, but you can quickly narrow your choices if you keep two characteristics in mind: material (plastic, glass, crystal) and shape.

PLASTIC SHOT GLASSES

Nothing says top shelf like plastic shot glasses, but, understandably, they are the status quo. They are cheap and easy and most customers expect them, unlike wine tastings where they may expect more than a plastic cup. Paying employees to hand-wash tasting glasses or giving up the cash and space for an industrial dishwasher is typically an unnecessary luxury for a startup distiller, and it isn’t bad to be frugal in an industry where expenses multiply faster than yeast. For tasting events outside the distillery where portion control is essential, glass breakage is likely and no dishwasher hook-ups are provided (the cheapskates!), plastic cups are just about the only viable option. And, if you distill in a state with restrictive sample laws, like Watershed Distillery in Columbus, Ohio, using glass just doesn’t make sense. Watershed makes five different spirits but can only serve four quarter-ounce samples per person. Allison Bowers says there isn’t much use in washing glasses when the tiny sample would just get lost inside. “We can’t put an ice cube in our spirits, we can’t serve a cocktail, we can’t give you a straight pour of bourbon, we can only give you a quarter-ounce sample,” tells Bowers. “It’s such a small amount and we can’t add anything to it so there’s no point in having glassware.” Bowers says that the plastic cups are also beneficial for portion control. Each one of their employees conducts tours of the distillery, and at the end of the tour they pour the four samples. Bowers can trust that they won’t be cited for over-serving because it’s easy to measure a quarter-ounce in those cups. “If you have a larger glass you are prone to pour a little bit more,” she says, “so it also helps to protect us.” WWW.ARTISANSPIRITMAG.COM

GLASS TULIPS

Distiller and spirits consultant Hubert Germain-Robin’s brandies have received worldwide acclaim, and he was one of the first on the scene of the current distilling movement, opening his California distillery in 1983. A respected judge and spirits expert, he has used a lot of different glassware, and he says plastic should be a last resort. “Honestly, plastic is not fair to the quality you are serving,” tells Germain-Robin. “I would prefer a wine glass and pour very little inside over using a plastic one.” Germain-Robin uses three primary glasses at his distillery: an open tulip glass, a closed tulip glass and a cellar master glass. Each has a different purpose, and each one shows different characteristics in the spirit. “If you pour the same amount of liquid in all of those different glasses,” he explains, “you are not tasting the same spirit, in fact.” For his personal evaluation and blending he uses the cellar master glass or the open tulip. The cellar master has straight sides that allow the aroma to waft directly into the nose, revealing the finesse of the spirit. The open tulip glass has a wide bowl and converging neck like the closed tulip, except the open tulip curves outward at the rim. “That’s a very good glass for tasting and it’s better for the finished product,” he tells. “It was designed by Hennessey and it’s very appropriate for the type of cognac. It’s very gentle because of the lip— the aroma comes very softly in your nose.” The drawback to open tulip glasses is their fragility. Germain-Robin says using them in the tasting room is an expensive proposition due to breakage, so instead he uses closed tulip glasses because they are more durable yet very versatile. He also emphasized the importance of using the same glass style for similar products, because if you use different styles it will be difficult to judge the spirits side-by-side and appreciate their differences.

AND

CELLAR MASTERS

THE

STONE BARN COLLECTION

THE

GLENCAIRN WHISKY GLASS 98

When Sebastian and Erika Degens of Stone Barn Brandyworks walk the three miles from their house to their distillery in southeast Portland, Oregon, they stop at estate sales, and they usually find classic glassware that has been idle far too long. “People often comment about our glassware because it’s an eclectic mix of classic cordial and liqueur glasses for tastings, as well as coupes and stemware from the 20’s and 30’s,” explains Sebastian. “They are perhaps awkward sizes for home entertaining but are really fantastic for what we’re doing.” Sebastian says customers also return with gifts of rare or unusual glassware to add to the collection, and they now have hundreds of unique tasting glasses, coupes and stemware, which lend their own signatures to Stone Barn’s colorful tasting room. Stone Barn makes a vast number of seasonal spirits and often samples

“Almost every distillery in Scotland—this is their glass in their tasting room,” says David Humphreys of Etched Laser Art, one of the main Glencairn glass distributors in the United States. “It’s pretty much the gold standard.” The Glencairn glass was conceptualized in the early 80’s by Raymond Davidson, founder of Glencairn Crystal in Scotland. Production costs sidelined the project until his son unearthed the design several decades later, and with the help of some master blenders, the Glencairn glass took form. Much like a tulip glass, the Glencairn has a wide bowl to encourage evaporation and a convergent lip to capture that aroma, but the stem was replaced with a sturdy base, making them very appealing to consumers. Davidson’s company produced 1500 handmade crystal glasses for a launch at Whisky Live London in 2001, and they now sell millions every year. Humphreys says that with the whiskey boom around the world and the bourbon boom at home, everyone has a better education and appreciation for the glass and how it works.

them in a cocktail of the day. The mix of glassware is a perfect way to highlight how unique each spirit is, and the Degenses choose each glass thoughtfully to fit each spirit or cocktail. “Because of the colors and the aromas, we find that certain glass shapes lend themselves to particular liqueurs or particular brandies,” tells Sebastian. “We have certain fluted shot glasses that are perfect for the grappa or the pear brandy because of the way the air and brandy interchange.” Sebastian says breakage is common and they have to run their industrial dishwasher a lot, but the cost is worth it because the glass truly spotlights their spirits. “It’s sensory—not just smell and taste but also the look,” explains Sebastian. “The glassware tends to show the legs of the alcohol where plastic would not. In all aspects the aesthetics of the crafted spirit do well in glass.”

“It’s been an astronomical climb in market share for these glasses,” tells Humphreys. “We have customers that buy one glass for a Christmas present, and we’ve worked with some of the larger worldwide whiskey conglomerates sending pallets and pallets of engraved Glencairn glasses.” Humphreys’ biggest customer is renowned whiskey maker Michter’s, who uses the Glencairn for all of their tastings because they like how the glass presents their spirits. They also use the Glencairn crystal lids which cover the glass to trap and intensify the evaporating aromas, which Humphreys says takes the tasting experience to another level. Many small distillers use the Glencairn, as well, and Humphreys says the glass gives tasters a more accurate and flattering impression of the spirit than a rocks glass would. “It makes a 30 year old scotch more complex and it’s also going to make a younger whiskey’s characteristics more prevalent in the nose,” he says. “It will give you a much more concentrated nose and that can benefit anybody at any time.” WWW.ARTISANSPIRITMAG.COM

P H O T O P R O V I D E D B Y N E AT G L A S S

THE

NEAT GLASS

Like the Glencairn, The NEAT (Naturally Engineered Aroma Technology) glass also took some time to mature. George Manska says the shape came from a glassblowing mistake in 2002, and after nine years of development and testing, it launched in 2011. The NEAT glass has a wide bowl for evaporation which converges near the top then opens up again at the lip. The lip is designed to disperse ethanol, which decreases nose burn and palate fatigue. Built short, the glass is designed to position your nose just above the spirit where the concentrated vapors are. “It really brings out how the spirit is different because you don’t have the alcohol numbing the nose and mouth,” explains Manska. “The shape of NEAT actually separates the ethanol and drives it away from the nose, opening up a new perception and intensity of aroma.”

P H O T O P R O V I D E D B Y H U B E RT G E R M A I N - R O B I N

THE

RIGHT GLASS

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The NEAT glass is the official tasting glass at the highly regarded San Francisco World Spirits Competition and many other respected judging events, and Manska says that many distillers who received judging medals this year put labels on their bottle telling that it was judged and tasted in the NEAT glass. Manska says the NEAT glass is quickly growing in popularity among everyone in the spirits industry, from distillers large and small to judges and consumers. And while many specialty glasses are often aimed at brown spirits, Manska says distillers should consider it as a good option for presenting their clear spirits, as well. “We went to a Patron tasting yesterday and they loved the glass for their blanco tequila,” he tells. “It’s all about alcohol by volume. Whether it’s a dark spirit or a clear spirit, it makes no difference.”

This is just a sample of the glassware options available to distillers, and the only way to find the right glass for your tasting room is to try some different styles yourself. You put a lot of care into making your spirits, make sure you are giving them the introduction they deserve. When choosing glassware, remember two things: first, the way the glass presents aromas to your nose is the most critical aspect since your nose

contributes much more to your sense of taste than your mouth, and second, don’t ever hand Hubert Germain-Robin a snifter. “You know what we call them?” Germain-Robin asks. “We call them the liars. You have all the alcohol coming in your nose. You have a very strong attack, and it’s not fair for the spirit you are tasting with them. I ban them. For me, the people using them, well, we should bring back the guillotine for them."

YOU DON’T KNOW JACK

W R I T T E N B Y H A R R Y H A L L E R

ith the American craft distillery renaissance in full swing it seems apt to pay homage to the only spirit actually invented in the United States:

APPLEJACK. A drink promoted by Johnny Appleseed, ubiquitous throughout all parts of early America, its recipe given to George Washington by the founder of the first licensed—and still running—US distillery, Applejack is now all but extinct. Surprising all the more because its closest relative, hard cider, is the fastest growing alcoholic beverage in the nation. And yet Applejack remains unanimously ignored. The few suppliers who propone to sell the stuff are peddling concoctions which, at best, are polite nods to the original. Demand for the beverage began to wane mid-nineteenth century as a number of disparate and unconnected events took hold at the same time—the temperance movement gained momentum in rural areas, industrialization was driving more people into cities (where making Applejack was a logistical nightmare), and a wave of German immigrants arrived bringing new brewing and distilling technology as well as recipes for better-tasting beer (pulling people away from hard cider which, in turn, pulled them away from Applejack). Land speculators were also getting more aggressive, setting up farms and flipping them faster than apple trees could grow. Further to that, successful water sanitation programs were finally weaning people off of the idea that fermented drinks were the only protection against cholera. It could be said that in many ways, Applejack represented the old guard of American society in the drastically changing definition of what exactly “American society” was. WWW.ART ISANSP IRITMAG.COM

101

And this is no small thing. Applejack was invented in America. Strange because it’s something incredibly easy to make. Even stranger because Apple Brandy, Apple Grappa, Calvados, Eau de Vie de Cidre, and Apfel Schnapps had been gracing tables throughout Europe centuries prior to Applejack’s discovery. The popularity of hard cider in Canada, Australia, and the UK during these times only adds to the wonder, why America? Maybe it’s as flippant and simplistic as to be explained by the random act of some pilgrim forgetfully leaving a barrel of hard cider out during a cold winter chill or maybe it is a perfect representation of the American soul— whereby accidental and undesirable outcomes were embraced instead of being thrown out, leading to an end-product far bigger than originally intended. Like the potato chip, the chocolate chip cookie, saccharin, corn flakes, and the microwave oven, perhaps Applejack’s claim to fame is not that it was the only liquor invented in America but rather America was the only place it could have been invented. A potentially hyperbolic statement until one realizes the profound importance of the apple—specifically the liquors made from the apple—to the creation of the United States. Prohibition added significantly to Applejack’s demise but it was actually the end of Prohibition which served the final death-blow. Unlike wheat and barley and malt and hops, it takes a good five to ten years to get apples from an apple tree and part of the Noble Experiment included the zealous razing of hundreds upon hundreds of orchards. An act which did nothing to curtail illicit production of Applejack during the dry years but, once the 18th Amendment was repealed, meant a distiller hoping to produce an apple-based liquor would have close to a decade delay-to-market compared to their grain-based brethren. Beer manufacturers also succeeded in getting legislation passed which specifically prohibited the addition of any preservatives to hard cider thus limiting its ability for mass distribution. And no hard cider meant no Applejack. Applejack, in other words, was dead. The year was 1933. So what exactly is this stuff? Applejack is a spirit traditionally made by placing a large wooden barrel filled with hard cider outside during cold winter months. The slight rise in daytime temperatures would warm the freezing cider enabling the alcohol (which has a lower melting point than water) to pass through the ice towards the barrel’s bottom. Come nightfall temperatures would drop and the process would start anew, each

...IT IS A PERFECT REPRESENTATION OF THE AMERICAN SOUL—WHEREBY ACCIDENTAL AND UNDESIRABLE OUTCOMES WERE EMBRACED INSTEAD OF BEING THROWN OUT...

102

HOW TO MAKE APPLEJACK Since it is illegal to produce Applejack without a distiller’s license these instructions are meant for educational purposes only.

TOOLS PLASTIC CONTAINERS—Like the 32 oz ones yogurt comes in—nothing with a small mouth

INGREDIENTS HARD CIDER

(1) SALAD SPINNER (1) FREEZER

DIRECTIONS Fill the containers with hard cider. Place in the freezer. As soon as things start turning from a slushy consistency to a soft ice— which may be as soon as 20 minutes—remove and put in salad spinner filling it up no more than a quarter. Close and Spin. If the Applejack has gotten too hard, simply let it thaw. Don’t break up the ice. Make sure you have a firm grip of the spinner. The density of the half-frozen hard cider can easily send the spinner skittering across your counter. Keep spinning until the ice in the inner chamber no longer has any color to it. Dump the ice. Pour the remaining liquid back into its original container. Repeat until the desired ABV is obtained. Using store-bought hard cider will give you an overwhelmingly sweet, almost unnatural candy-like drink. Good news though: with farm-fresh cider—void of any chemicals or preservatives— hard cider is amazingly easy to make so...

day leading to a higher concentration of alcohol. A second method called for the freezing water to be skimmed off the top of the barrel at sundown. Either way the end-product was the same—an intensely tangy, fruity liquor ranging between 60 and 120 proof. Cold-distillation, as this process is called, requires a commitment of roughly ten gallons of hard cider for one gallon of Applejack. Even though it’s been over eight decades since Applejack’s demise there may still be hope for this American Original. In 1996 Cidre de Glace was produced commercially for the first time. Made in a manner impressively similar to Applejack, half a million bottles of this 14 - 26 proof drink was being sold annually in less than a decade. Perhaps the success of this Canadian creation will provide the necessary motivation for one of the numerous US distilleries or one of the 400 opening this coming year to spearhead Applejack’s revival. Harry Haller is an independent consultant focused on working with sugarcane-based distilleries. He can be reached at 00harryhaller@gmail.com or (310) 933-6430. WWW.ARTISANSPIRITMAG.COM

HOW TO MAKE HARD CIDER More good news, the Federal Government allows the production of 200 gallons of hard cider per household for personal consumption. Make sure to check your local and state laws. They could be different.

Note: The three versions presented are the most basic methods for making hard cider. Numerous more detailed instructions are easily found online.

TOOLS (2) ONE GALLON GLASS JUGS AIRLOCK PAPER TOWEL—if using raw cider ELASTIC BAND—if using raw cider FOOD-SAFE HOSE

INGREDIENTS FARM-FRESH CIDER—pasteurized or raw (but take note—as safe as raw cider is there are still inherent risks with using unpasteurized cider) CAMPDEN TABLET—if using raw cider YEAST

DIRECTIONS Note: With each method use thoroughly cleaned, and preferably sterile, equipment.

VERSION ONE — RAW AND WILD Pour the raw cider into a glass jug. Attach the airlock. Store in cool place. Wait. Check on it in three weeks. It can definitely take longer so be patient.

VERSION TWO — RAW WITH ADDED YEAST Crush one Campden tablet, dissolve in a tablespoon of hot water and add to raw cider. Stir. Cover the top of the bottle with a paper towel, fastening it with the elastic band. Wait 48 hours. Pour the raw cider into a glass jug. Pitch the yeast. Attach the airlock. Store in cool place. Check on it after a week.

VERSION THREE — PASTEURIZED Pour the pasteurized cider into a glass jug. Pitch the yeast. Attach the airlock. Store in cool place. Check on it after a week. With all three versions, once fermentation has stopped and the sediment has had a few days to settle to the bottom of the glass jug, use the hose to siphon the hard cider into the second jug. Attach the airlock (making sure you cleaned it thoroughly beforehand). If all you want is hard cider let it sit for at least a month. For Applejack you can use it right away (actually, if the hard cider tastes good, feel free to drink it then and there).

FINAL NOTE: The best hard cider comes when you make your own cider. For the truly adventurous there are various small, relatively inexpensive hoppers and presses on the market (you can also opt for a bucket and a yard-long 2x2 piece of wood instead of a hopper and, with basic carpentry skills, it’s easy to build a press). Make sure to get slightly over-ripened apples directly from orchards—any variety close to Winesap is a good starter apple being that these make a cider which simply begs to become hard cider. If you can obtain the farm’s culls, all the better. Not only will they cost a fraction of the price (or even be free) but these ugly smaller fellas make for a better hard cider. Most dessert apple varieties, like Red Delicious, don’t make for an interesting cider, so try to avoid buying supermarket apples because they typically only carry these varieties. Buying from a local orchard will give you a better cider for a better price, and you can even pick them yourself, but make sure not to use apples that have fallen and laid on the ground.

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A TREE GROWS IN NEW YORK WRITTEN BY JOHN COX

t’s late fall and as I step away from the saw and go out onto our loading dock, I see the rust colored Catskill Mountains before me. The walnuts and maples have lost their yellow and red leaves, and the burnt sienna of the American White Oak (Quercus alba) dominates the view. We’re surrounded by oak, just as many of you are surrounded by it in the form of barrels that line your distillery walls. Artisan Spirit has explored why we use oak and also what it brings to the table, but how did those staves get to the table to begin with, and where did they grow?

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When we started last year and converted our 27-year-old cabinet shop into a cooperage the first thing we had to do was find an oak supplier for our own stave logs. The American Oak grows heartily here in the Northeast, and we are fortunate to be down the road from a large logging supplier. In my past career as a cabinetmaker, our shop bought rough milled wood, such as cherry and oak, that had been kiln dried, but buying logs (green wood) is different in many ways. Wood that is used by cabinetmakers and furniture manufacturers has been kiln dried to a moisture content of 8-10%, making it stable to use indoors.

While this adds stability to furniture and millwork it poses a problem to the cooper. Wood is comprised of two properties, cellulose and lignin. Lignin is a complex organic substance and contributes to the wood's elasticity. When wood is heated in a conventional kiln the lignin is hardened or “set,” rendering it rigid and unbendable. This is what gives the wood stability in your home. At the cooperage we need to be able to bend wood, so we use oak that has been air dried, or in some cases dried in low temp stave kilns, so that we are able to bend the staves without risk of them splitting. WWW.ARTISANSPIRITMAG.COM

Out in the log yard we inspect the logs. We’re looking for tight grain, avoiding logs with a pattern of irregular growth rings, which can be caused by a tree that grew under tension, such as leaning. The logs should be straight and have three to four sides clear of knots with no mold or severe splitting. The price is then calculated according to the board feet. These are the same logs that are in high demand for veneer and furniture, so due to this, and the nature of commodities, prices are volatile and are subject to seasonal market related factors. Following the uptick in new home construction, the increase in lumber exports over the last few years, and the boom in craft distilling states like ours, prices continue to rise for white oak. While we can identify the mill source, the American logging industry does a poor job of tracking where logs originate, but upwards of 90 percent of the logs we buy come from NY state. Lately we’ve also started testing the effects of southern oak and its influence on flavor profiles. Southern oak is milder and softer than the northern oak which tends to be harder and denser. According to Joel Elder, craft spirits consultant at Quinta Essentia Alchemy and

former Chief Distiller at Tuthilltown Spirits, the exploration of American Oak and the influence of regional terroir is still, “largely unchartered waters.” In spirits, terroir is expressed not just through the grain or the grape, but also through the influence of the oak. We know the fundamental differences between French and American Oak, but we haven’t yet deeply looked at the differences here in our own domestic supply. “I have tasted the same batch of Rye whiskey,” says Elder, “aged in both Missouri oak and Pennsylvania oak and the difference was substantial. The Pennsylvanian oak gave unique notes of ginger and cinnamon and the color was remarkably coppery. Both products were fantastic, so it wasn’t simply better, it was fundamentally different.” Whether or not our industry uses stave mills, local loggers, or a tree from a neighbor’s yard to make our barrels, we must keep in mind that even though oak is a renewable resource we must practice stronger forestry renewal. Here in the US our supply chain is based on a scavenger-like mentality which leads to waste and the increase of fast-growth highyield species. The building industry uses

Lately we’ve also started testing the effects of southern oak and its influence on flavor profiles.

their technology to advance composites and products which use such trees. The industry as a whole needs to take care over the next decades and consider oak-based reforestation techniques. History shows us the advantages of such measures. In the 17th century King Louis XIV replanted and protected many of the great oak forests of France after he and the Secretary of Navy realized that on their current course they would run out of oak which they needed for their warships and masts. This wood, Quercus petraea, is now highly valued by European vintners in their barrels. Back here at our cooperage in the Catskills I’m surrounded by resilient oak forests that saw King George clear them for his warships, and then the industrialization of the 18th and 19th centuries where our region, with access to the Hudson River and canals connecting to a growing western frontier, was a hotbed for oak lumber and the ubiquitous cooperage. Everything from cement that built the Brooklyn Bridge to flour and gunpowder were shipped in oak barrels from this region. It’s in this cultural heritage that we begin our journey as coopers. Winter is coming and we need to continue buying oak to get ready for the next few years’ barrels. So I’m back to the saw, for now, but I’ll continue to chronicle our journey here in these pages and send reports from the cooperage. Cheers! John Cox is owner of Quercus Cooperage in High Falls, NY. Visit www.qcooperage.com for more information.

P R O V I D I N G R Y E to the distilling industry for over 50 years.

Brooks Grain Improving the quality of life with grain.

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UP, UP AND AWAY... WRITTEN BY STEVEN SEIM & BRIAN CHRISTENSEN /// PHOTOS BY BRIAN CHRISTENSEN

y craft distilling standards, Paul Hletko, owner of FEW Spirits in Evanston, IL, has attained celebrity status. FEW is successful, nationally recognized, and positively acclaimed. It also doesn’t hurt that Hletko is easy to talk to, and generous with his time, despite self-identifying as “kind of a dick.” He’s not, but he has a wry sense of humor and wit that keeps everyone on their toes. With Hletko at the helm, FEW has grown substantially over the last several years due to its increasing popularity among fans of craft spirits. But this isn’t a story about Hletko.

This is the story of a loving goodbye.

“ The more you learn, the more you realize you don’t know. There’s an endless rabbit hole of things you can be improving... you’re never done, which is fun.” — MARK ANUNSON

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At the time of our interview, FEW distiller Mark Anunson only had 10 days remaining in his position before packing up and moving out of state with his family. Life had conspired to present Anunson’s wife with a new job opportunity, and it was time for Anunson to move on. Anunson was excited, but there was no mistaking the love he had for FEW, and the melancholy he felt when he spoke of leaving. Anunson had been at FEW near the beginning of the company and has spent the last three years lovingly crafting spirits and helping to build a brand. Adapting to growth has been an exciting challenge for Anunson and all of the employees at FEW. Anunson explained to us some of their methods, dealing with expansion, and how they plan on continuing their upward trend even after he is gone. In the three years Anunson has been employed, he guesses that their production has gone from 25 gallons a day to over 100 gallons a day due to the increase in production and refining their methods. With a subtle smile Anunson says, “The more you learn, the more you realize you don’t know. There’s an endless rabbit hole of things you can be improving...you’re never done, which is fun.” Recently Anunson has mainly focused on dialing in their processes with their established product lines rather than experimenting with new recipes. Specifically he described their work on pH and enzyme optimization. Besides brewer’s salts, they’ve begun using stillage to help maintain pH with some success. Anunson also plays the role of part-time engineer.

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Using a specific method of oxygenation they have been able to increase yields by 10%. Anunson described the process for us: first inject airline-grade O2, the stuff you breathe on airplanes, into the mash for roughly 10 or 15 minutes each batch. Extra oxygen encourages growth and multiplication in the yeast, cutting down the time until the yeast is ready for the next phase of making alcohol. While bigger distillers use this technique, he hasn’t heard of many craft distillers taking advantage of its benefits. Anunson said, “It’s one of those things that I think brewers take for granted, and distillers just don’t do. I don’t know why.” For an investment of only a few hundred dollars, FEW is very happy with the results from very little work. Anunson discussed changing roles as an employee of a growing distillery. At one point he performed many jobs in addition to distilling, including conducting tours around the distillery and working directly with the fans coming through the door. Now that they’ve brought on more employees, there are others to handle those duties. Anunson says, “Now I don’t have to do tours and pretend to be a people person.” But while he is grateful to focus on distilling, he appreciates the perspective those experiences offered, and he makes it a point to ensure that each distillery tour is special. “Now, when I’m running production, I know enough about the tour schedule so I can time things so that everything looks pretty and the run is at a nice place to see what’s going on.” It’s that attention to detail and extra effort that perfectly summarizes the pride and joy Anunson and the other FEW employees carry with them on the job. As FEW grows and learns, we asked Anunson about the help they have received from the rest of the distilling community. “I think the distiller community could do a little better with networking and having a tight-knit community like the brewing world,” he said, “But that’s natural, it’s a younger industry.” He thinks smaller distillers are starting to get better about sharing information, especially through distiller organizations like ACSA. On advice for other distillers Anunson shares, “It’s just onward, always. It’s insane the number of challenges, the number of things that go wrong, and how much more it will cost than you think.” For a distiller like Anunson, it also helps to have an owner like Hletko who knows how to grow a brand and is willing to do some legwork. “It’s nice for me,” Anunson said. “From my perspective I can focus on making the best product possible. I know that Paul is going to be out there dealing with all of the other details.” It’s not likely to be a simple transition from his life at FEW. More than once Anunson’s found his work leaking into everyday life. He described a particularly surreal moment outside of the distillery that started by finding a bottle of FEW in a store. This bottle was uniquely special to him. He had signed this bottle with his son’s name when he was born. Anunson’s gaze wanders the room from barrel racks to still before saying, “It’s been a crazy ride — it’s been a rocket ship.”

FEW Spirits is located in Evanston, IL. For more info, visit www. fewspirits.com or call (847) 920-8628. 108

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THE

NEVER ENDING CAMPAIGN FOR RELEVANCE WRITTEN BY JEANNE RUNKLE

Keeping your distillery doors open isn’t just about selling that first, or even second, bottle—it’s about creating fans. You’re hard at work every day— sweating at your still, using up shoe leather going account to account and educating mixologists and managers on your product. It seems to be an uphill battle, creating

and

sustainable

building

business.

a It

may seem a bit daunting. Or a lot daunting. As I’ve been

traveling

around

the country talking with people from all sides of the industry, here are the recurring themes and ideas I encounter about today’s craft distilling. WWW.ARTISANSPIRITMAG.COM

WHERE WE ARE GET YOUR PRODUCT OUT THERE. The elephant in the room that most people actually will talk about is distribution. It’s difficult to get a large distributor to care about your brand. If the distributor reps aren’t pushing your product, you’re the one left calling on accounts. It’s easy to spread yourself too thin; so before you hit the road on a 12 state sales trip, make sure you’ve covered your home turf. Do your research and find the hot spots that fit with your brand so you don’t waste valuable time. PEOPLE LOVE PEOPLE. Don’t forget the bar managers, either. They’ll be the ones to place the order when the bottles are empty, so they need to remember your brand. Make sure you’re memorable in a positive way—no bottles with things floating in them (unless that’s intentional and you can explain it), no poorly written marketing materials. Your first visit may be your last if you don’t pay attention to the details.

TASTE IS EVERYTHING. You’ve done it. Signed the lease, received your permits, and built your still. And while you’re excited, the bills are looming large. There’s temptation to hurry things along to get a bottle on the shelf, but there’s no substitute for flavor and quality. Malahat Spirits in San Diego makes their spiced rum with vanilla beans that are split by hand. When I asked one of their founders, Ken Lee, how that would scale, he said, “We’ll just hire more people! I won’t sacrifice the integrity of our spirits.” If you need to cut expenses, find another area—taste is what will sell your second bottle (and hopefully many more). YOU ARE YOUR BRAND. Denis Lynch, General Manager of Vine & Table, Indianapolis’s premier fine wine and liquor store, summed it up perfectly: “The men and women that are doing it right are doing it for the love of the spirit. It’s not a ‘get rich quick’ scheme, it’s about doing what you love.” Make sure that shows in clear, consistent messaging and branding. You’re not just selling your whiskey/gin/rum, you’re selling your passion. 109

WHERE DO WE GO FROM HERE? MOVING BEYOND TRANSPARENCY. With the kerfuffle around whose liquor is in whose bottle, it may no longer be enough to be transparent about your process. Sharing information that goes beyond distillation techniques may be the key to keeping, and in some cases regaining, customer trust. Consider including barrel tasting notes and blending information on your website to help customers understand specifics about their bottle. Does your distillery have barrels aging where visitors can see them? Sell advertising space on the barrel head—it will help offset the cost of the booze in the barrel, plus customers get to feel like they are part of the magic.

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What about beyond your backyard, where people have no idea who you are? In your hometown, you’re the local favorite. Bartenders might shout your name reminiscent of a Cheers episode, and local retailers have your bottles on the shelf. In talking with Jason Barrett, President and Head Distiller of Black Button Distilling in Rochester NY, he had this to say: “I think folks need to ask themselves, ‘Does the world need another vodka, or London dry gin or your take on rye whiskey?’ Be different, sell on flavor—not just local—and your products will go far.” Beyond your core line of products, try something original. Wine country nearby? Check out making grappa. Love Scotch? Think about a way to make an unique American single malt.

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and money consuming, and aren’t a good option for every bottle you produce. But people like to feel like they have something that’s unique. Offering a way to customize bottles to commemorate an important event could be worth the investment. Fifty milliliter bottles can be a great advertisement when they’re in front of a hundred guests at a wedding. Find ways to get your fans to think of you as a part of their favorite memories. One notable example of originality is Trent Tilton of San Diego Distillery, whose model was inspired by the craft beer scene. He’s creating spirits that aren’t made from just the normal corn/wheat/ rye. He is utilizing specialty ingredients with limited runs and a menu of selections that will change frequently. Return customers who are looking forward to your next release are likely to bring their friends! Find new ways to bring customers back. These are the highlights of what people have shared with me during my travels. There are many other ways to build your distillery. While this is not an exhaustive list, I hope this helps to get you thinking. Brainstorm, talk to other distillers, and research your options. What can you do today that will improve tomorrow? Jeanne Runkle currently lives in the Northeast. You can also find her whisk(e)y musings at PancakesandWhiskey.com.

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S H O P VA C U U M AUXILIARY TANK & BOTA N IC A L S G R I N D E R W O R D S & P H O T O G R A P H Y B Y C A RT E R R A F F

If you’ve read my past articles, you’ve seen us delve into some of the more niche aspects of the distillery business. Today we’re going back to DIY, and outlining a few of the items that I’ve made over the years to enhance the equipment and experience of some of my operations. There isn’t a single piece of equipment at my distillery that I haven’t modified in some form or another. It’s the nature of our business, and also a part of my own nature. One of the most helpful pieces of equipment that I’ve fabricated is an auxiliary tank for my vacuum. Many distillers have to clean their still out manually as the botanicals won’t fit through the drain. I have the same problem, so I have to vacuum out certain washes. That would fill my shop vacuum quite a few times, which gets very annoying and time consuming to empty, so I put another tank in between. This allows me to vacuum out my still in one operation. It also saves money: if you look at the cost of a professional canister vacuum they can range into the thousands of dollars. Those are not necessary.

SHOP VACUUM AUXILIARY TANK 1. Start with a standard shop vacuum. I like the 16 gallon Sears Craftsman—it has a hell of a lot of sucking power WWW.ARTISANSPIRITMAG.COM

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(technical terminology). Stay away from the inexpensive big box store in-house brands (or brands that make models specifically for said big box stores). They tend to be cheaper both in cost and construction. Make sure to get one with a decent horsepower rating.

2. Next, you’ll need the auxiliary tank. I’ve tried quite a few and started with a standard open top blue 55 gallon drum. Believe it or not the shop vacuum crushed it like a soda can. I tried to stabilize it with braces, but still no dice. I ended up finding a 55 gallon steel drum on Craigslist for $35. It already had a 2” NPT hole in the lid. I did have to drill and weld a tank bung, also 2” NPT, to the side. Make the side the inlet so the particulate you’re vacuuming doesn’t have to go around corners, thereby giving less chance to clog. If this is beyond your scope of DIY then

you could pay a welding shop to do it or look for a drum that has two 2” NPT holes in the lid.

3. After

that’s done, you’ll need to buy another vacuum hose. I like sticking with the same size that’s on the shop vacuum I have. Next you’ll need some PVC pipe fittings, two of which are threaded for 2” NPT. From there just mix and match until you find the fitting that will allow you to fit the ends of the vacuum hoses in. Since this is a vacuum system you do not need to glue the PVC fittings together as you would if you were making a water system. They do make a PVC fitting with a 2” rubber compression ring that fits a 2” vacuum hose perfectly. If you want to get real fancy you can look online for 2” vacuum hose that’s heat tolerant to 250 degrees Fahrenheit and be able to vacuum hot dunder without ruining your vacuum.

This tool has become invaluable at the distillery for cleaning out the still as almost all of our charges have something in them. I would also recommend getting a drum truck. It’s a hand truck for drums and it comes with straps for holding the drum on and tilting mechanisms for tipping a full drum down for draining.

The next bit of equipment that I find very helpful is my botanicals grinder. I’ve tried lots of other devices with no success, and professional grinders made for the kind of items I’m talking about are very expensive. I’m not talking about a grain grinder—for that I would stick with the typical hammer mill—but a grinder for the other botanicals you’ll need to grind. I ended up using a used Bunn Commercial Coffee Grinder, again found on Craigslist. These can also be pricey, but if you’re fortunate you can get one for $100 or so. They make quite a few models. I went with the single hopper and the adjustment under a cover in the front. This model was made for moving large quantities of beans.

BOTANICALS GRINDER 1. When

you first get hold of one, you’re going to want to modify this, as well. These things weren’t meant to be the airtight machines we want them to be. Go ahead and get some high proof spirits out and wipe the machine down inside and out. Get all the oil from the beans off. Then pull the grinder heads out and clean them.

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2. At

this point, I would set a rough adjustment of the grinder heads. I focused on getting it as course as I could get, which for most botanicals is a great grind.

3. Get some food grade silicone and seal all the seams in the hopper. Then with some latex gloves on, go through the access panel in the front and put some of the silicone around all the areas around the shoot coming from the hopper. If you don’t do this little bits of botanicals will get in there and eventually mold.

4. After you let the silicone dry do a test run. Redo any sealing until it is airtight. You might have to stop every half hour to let the motor cool as these machines are not made to be run continuously. The machine has a single button on the front that is hooked to a timer that can be adjusted. I have it set to the longest possible operation. Then I hit it, grind and then hit it again and grind and that gives me enough to fill a stainless steel bowl which I pour into a 5 gallon bucket.

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NOTE: Do not try to grind anything wet or gummy in this machine, such as juniper berries. The machine won’t be happy—and you won’t be happy having to dismantle the entire machine to clean it.

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Modifying equipment is a normal part of running a distillery. We do this to make our production run smoother and easier. Next time you’re buying some equipment, think about how you can make it better. If you come up with something truly helpful post it on one of the many professional forums. Carter Raff is owner and master distiller of Raff Distillerie in San Francisco, CA. Visit www.raffdistillerie.com for more information.

Disclaimers: 1. Metalworking can be a dangerous business so please take care when working with tools, power or otherwise. Make sure you understand how to use the tools you are using and to use proper protection, such as safety glasses. 2. As a distiller you are taking a risk by making and using this equipment in and around your distillery as ethanol is highly flammable. This article is merely a guide to inspire people to make their own equipment. Proceed with caution, no guarantee is expressed or implied.

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Craft Beverages Unlimited

ARTISAN SPIRIT sponsors

114â&#x20AC;

WWW.ART ISANSPI RI TMAG.CO M

With a bold shoulder that exudes strength yet an exquisitely supple curve to suggest a smoothness within, ISLAY is a masterful infusion of both elegance and strength, adapted to any craft spirit.