Beverage Master Magazine June July 2024

BEVERAGE MASTER

Craft Beverage Practice Bar & Restaurant Insurance

Loan Mantra

Distillery Now Consulting LLC

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Braxton Brewing Company:

Beer, Bourbon Barrel Aging and the Path Forward

By: Gerald Dlubala

e never know when the entrepreneurial spirit may hit.

For Evan Rouse, co-founder and CPO of Braxton Brewing Company, it hit while he was still in his teens.

But he was interested in something other than the businesses many teens jump into, like grass-cutting or retail careers. Rouse's interest was the business and art of craft beer and brewing. Even though he was only 16 years old at the time, nowhere near the legal age

to enjoy a craft brew, that didn't stop him from following his passion and building his first home brewery in his family’s garage on Braxton Drive. Yes, you read that right. Evan Rouse was brewing craft beer in his garage years before he could legally enjoy the fruits of his labor.

But he wasn’t finished there. Rouse had a vision of what the perfect craft brewery would be like. He envisioned a comfortable place that brought folks together to relax while enjoying whatever style and type of beer they preferred. With that vision in mind, Rouse and his brother opened Braxton Brewing Company. Braxton Brewing Company cel-

ebrates the Rouse family’s determination, knowledge and pride while being a brewery everyone can enjoy, regardless of taste and style preferences.

From Family Garage to Multiple Locations

“We opened in March 2015,” said Jake Rouse, Evan’s brother and the co-founder and CEO of Braxton Brewing Company. “Opening a craft brewery was the natural progression and conversion of my brother’s initial interest in craft brewing back in our garage on Braxton Drive. I was fortunate to be able to sell my successful technology company at the time, and we decided to look at the craft brewing landscape. Evan was more than ready to jump into the industry, so we basically took a leap of faith and opened Braxton Brewing Company in Covington. That’s our original spot. We later opened another location in Cincinnati after the pandemic. When the pandemic went through, the owner of a closing Cincinnati taproom reached out to us based on our experience and expertise to see if we wanted to take over the location. We did, and now have taprooms there, at CVG International Airport and in Fort Mitchell, Kentucky.”

The Rouses are planning a fifth location in Union, Kentucky, just around the corner and a few blocks from the garage where Evan first set out on his brewing journey. Slated to open this fall, the Union location pays homage to the memories and location of where everything started on Braxton Drive. The 20,000-square-foot greenspace and beer garden will be home to three local favorites, Braxton Brewing Company, Dewey’s Pizza and Graeter’s Ice Cream – all in an inclusive, one-of-a-kind family destination. It's a place to come together in the heart of Union, Kentucky, and enjoy pizza, drinks, ice cream, specialty programming, music, events and more, all in one location.

Braxton Brewing’s Union location will also feature a full craft cocktail bar in addition to its diverse and distinctive beer list.

“We’re excited to announce a new cocktail and bourbon partnership to appeal to our non-beer drinking customers,” said Rouse. “That bourbon partnership is helping us to create a one-of-a-kind, beyond-the-beer space in our taprooms. We also partnered with one of the best mixologists in the country to craft a unique cocktail menu that allows

Packaging Machinery

Our machines are uniquely engineered to provide you with the bottling, canning and keg washing support you need for

our cocktail-loving friends and visitors to enjoy and experience unique cocktails and quality bourbon just as if they were at their favorite distillery. We combine great spirits and a modern, comfortable setting to provide an authentic distillery experience at our taprooms.”

Rouse tells Beverage Master Magazine that all Braxton beers are brewed in their original Coventry location, where they’ve always looked to create craft beer that appeals to the masses.

"We want everyone to find something they like across several styles," said Rouse. "Our brand, so to speak, is brewing and serving customer-driven beers so everyone can feel welcome and included when they walk through our doors. Whatever types and styles of beer our customers love, we want those included in our lineup, if that makes sense. We listen and try to include our customers’ preferences in our product lineups as much as possible.”

Barrel Aging from the Beginning, Braxton Now Offers Private Barrel Program

"From day one, we've always had a robust barrel-aging program,” said Rouse. “And when you’re a Kentucky-born brewery, you have to take pride in that program. It’s all about the beer we come up with, but it’s also about what that whole process looks like. And then we celebrate our barrel aging program with our friends and visitors at our signature end-of-year event called Dark Charge Day.”

Dark Charge Day is a highly anticipated, end-ofyear annual event created by Braxton Brewing to celebrate, showcase and sample their barrel-aged beers for the year.

The diverse beer menu of their Union Barrel House is typical of what is available at any one time.

The expansive list includes variations on their signature barrel-aged beers, lagers, doppelbock, pilsners, shandies, sours, cream ales, stouts, hefeweizens and more. And, of course, you'll always find their Garage Beer on the menu, an easy-drinking classic American light lager available in regular or lime.

“We’ve done it from day one,” said Rouse. “This is our 10th year hosting our Dark Charge Day for our community. We shut down the street and release our bourbon-aged beers, including our bourbon-aged imperial stout. During the celebration, our visitors can enjoy and sample our offerings in an event-style atmosphere rather than maneuvering a specific single-beer release. It’s a great way to connect with our community while allowing them to taste things that they may not have had the opportunity to experience previously. It’s a way to gain new insight and knowledge about what we do and who we are, but it's also a way to find out what releases and profiles resonate with our customers. The aging barrels are all acquired through our bourbon partnership, and we always have a large amount of them in the process of being filled for future releases. It’s always exciting to see the results and where future releases will take us.”

Braxton Brewing offers a private barrel-aging program for those beer enthusiasts who have always dreamt of creating their own beer style. In perhaps the country's first such experience, Braxton Brewing's private barrel program allows customers to literally take the controls and create their own unique barrel-aged beer. Customers choose the beer style, the packaging and can even use that catchy beer name that they've had rattling around

in their head should they ever come up with their own craft beer.

“The private barrel program is just another option for our customers to do something different and unique,” said Rouse. “It may not be the main core of what we do, but it’s a great opportunity to experience and be part of the journey that a barrel-aged beer goes through.”

As the Industry Changes, So Must Craft Brewers

“Realistically, the craft beer industry is changing,” said Rouse. “I think the modern craft brewer has to appeal to the varied tastes and expectations of the modern consumer. We focus on delivering an experience upon entering our taprooms that reflects customer expectations. Far too often, a brewery or taproom is delivering the same experience as multiple others nearby, and that’s just not going to work anymore. There are just too many breweries that are similar to the next brewery that may be down the street. With Braxton Brewing, any drinker can come into our brewery and taproom and have the

experience that they were expecting.”

Rouse said that the main thing for craft brewers to remember is to stay true to themselves while providing for their customers’ needs. By doing this, a craft brewer will take care of his customer base, be attractive to new customers and ultimately figure out a path forward from there.

“Just like with us and our barrel-aging program, brand identity and customer focus,” said Rouse. “We’re doing what we think makes sense, and we’re excited to see the outcome and future path forward. But just like the majority of craft brewers have to do right now, we’re adapting, changing, focusing on what our customers want and expect and using that as a guide for future growth.”

To find out more about Braxton Brewing Company and their locations, or to reserve a space for your next get-together, visit their website or contact them at:

Braxton Brewing Company 27 West 7th Street • Covington, KY 41011 (859) 261-5600 • social@braxtonbrewing.com

Ten Ways to Keep Profits on Tap

By: Raj Tulshan - Founder & Managing Member of Loan Mantra

Over the past two years the cost to run a business has risen sharply with inflation surging to over 13%. This squeeze leaves many business owners trying to operate more efficiently and find ways to do more with less -- making every dollar count. A recent survey by Vistage reports that two-thirds of small business owners have either cut costs or plan to reduce spending in the near future. The majority, 67%, also plan to seek business funding over the next 12 months.

Finding and evaluating the best financing options can be confusing for business owners that are already short on time and money. Using a onestop loan application portal to find the best suited

options like the one at Loan Mantra is a way to access multiple commercial loan options in one place and avoid high-interest debt. In addition, here are some tips to keep profits on tap.

Monitor Cash Flow Closely: Cash or flow management is critical for beverage businesses, as even minor fluctuations can have a significant impact on financial stability. Keep a close eye on your cash flow by monitoring incoming and outgoing payments regularly. Implement invoicing strategies to encourage prompt payment from customers and consider offering discounts for early payment to improve cash flow. By staying proactive and vigilant, cash flow crunches can be avoided to maintain

a healthier financial position in the long run.

Reduce Overhead Expenses: Examine overhead expenses carefully and look for opportunities to reduce costs wherever possible. This may involve renegotiating lease agreements, downsizing commercial space, installing lighting timers or switching utilities and service providers to save on electric bills, phone service and Wi-Fi. Encourage employees to adopt energy-saving practices, such as turning off lights and equipment when not in use to save money on lower utility bills. Have major systems inspected for water leaks and waste. Saving dollars on overhead expenses is one of the best ways to contribute to your bottom line.

Negotiate with Suppliers: Building strong relationships with your suppliers can pay large dividends when it comes to saving money. Don't hesitate to negotiate for better prices or discounts, especially if you've been a loyal customer. Explore different vendors and compare prices to ensure you're getting the best possible deal on supplies and materials. Additionally, consider joining co-ops or buying groups with other businesses to increase purchasing power and negotiate bulk discounts.

Invest in Human Capital: Thirty three percent of U.S. companies expect employee turnover to increase this year according to a recent poll, costing an average of $36,295 per employee. While it may seem counterintuitive to spend money on training, investing in your employees can yield significant long-term savings. Research from LinkedIn found that 94 percent of employees say they would stay at a company longer if it invested in helping them learn. Well-trained employees are more efficient and productive, leading to lower turnover rates and reduced recruitment costs. Provide ongoing training and professional development opportunities to help employees stay current with industry trends and best practices. By investing in your team, you can build a skilled workforce that drives business growth and profitability.

Get the “Lifetime” worth out of Equipment: I was talking to a friend about their recent doctor’s office visit. During the visit, my friend noticed that as the medical tech entered the room, they dragged a large unit behind them bumping into both doorposts and finally hitting a back wall. They noticed how this tech roughly handled expensive medical

equipment. This illustrates an important point. If a company purchases equipment designed to last 10 years but it only lasts 5, it will need to be replaced before its “lifetime worth,” or it will need replacement 5 years earlier than expected. This can add up to thousands if not millions of dollars in unintended expenses.

Train to Remain: Make sure that employees are properly trained to use equipment safely to minimizes workplace hazards to avoid unfortunate events that could result in heavy losses. It is a good idea to periodically check on employees to see how costly business equipment is being used and reward or remediate actions if needed. And don’t forget machines need regular scheduled maintenance for cleaning and repairs. Getting a lifetime worth out of equipment contributes to automatic savings and impacts profit.

Moderate prices: The public has hit a tipping point where high prices are driving consumers away from fast and quick-serve restaurants to eat at home. Prices at quick serve establishments rose 5% in March over the same month in 2023 while grocery prices have increased more slowly, according to the Bureau of Labor Statistics. The take-away? If price increases are needed, avoid this kind of consumer sticker shock by moderately raising prices slowly over time.

Drink in new distribution sources: Beverages now influence where consumers are choosing to eat. The National Restaurant Association’s 2024 State of the Restaurant Industry report, says that alcoholic beverages no longer take a back seat as just a “compliment” to dinner but can influence consumer’s choice of one restaurant over another acting as a key driver to the establishment. Seven out of 10 consumers who drink beer, wine, or cocktails claim the availability of alcohol beverages would make them more likely to choose one restaurant over another. Alcohol brands can approach eateries, local restaurants or franchise chains to form partnerships to push sales.

Get ready to go: Half of full-service restaurants deliver alcoholic drinks with food orders and 96% say they'll continue to if permitted to do so in their area. 93% restaurants also offer alcoholic drinks with pick-up orders, according to the same NRA report. For operators who serve alcohol, beer is the most common alcoholic beverage served with

takeout or delivery orders, with 83% of restaurants offering it. Wine by the bottle is available at 65% of full-service restaurants that sell alcohol with takeout or delivery, and cocktails are at about 6 in 10 full-service restaurants selling alcohol to-go. Locally sourced beverages, such as craft beers, are also popular among Gen Zs and millennials, as are alcohol-to-go selections.

Fake it until you make it: The mocktails are coming! The popularity of no and low-alcoholic beverages are anticipated to grow to 4% share of the alcohol market by 2027. Non-alcoholic beverage sales increased by 32% as compared to the year before while total alcoholic beverage sales for the same period only increased by 1%. Non-alcoholic beer "dominates" the no-alcohol category over wine and spirits while non-alcoholic craft beer claims over a quarter (28%) of the non-alcoholic beer available. The demand is partly fueled by more health-conscious, younger consumers who are concerned about personal wellness, low carb/ calorie offerings and choosing brands that are sustainable and environmentally friendly.

Saving money is a crucial aspect of managing business and implementing the right strategies can make all the difference. By investing in human capital, getting a lifetime worth in equipment, negotiating with suppliers, monitoring cash flow, reducing overhead expenses and expanding distribution channels, business owners can achieve greater financial stability and long-term success. With careful planning, smart decision-making and by making every dollar work harder, beverage businesses can thrive in today's tough market and keep more profits on tap.

Raj Tulshan is the founder and managing member of Loan Mantra, a one-stop FinTech business portal that democratizes the loan process by providing corporate sized services and access to entrepreneurs, small and medium sized businesses. Connect with Raj and Team Loan Mantra at 1.855. 700.BLUE (2583) or info@loanmantra.com.

Event-Season Tips for Restaurateurs & Vendors

By: David DeLorenzo

ummertime often equates to weddings, events, festivals, outdoor concerts and more where a variety of vendors converge to serve food, drinks and more. Establishments and vendors have a unique opportunity through these events to promote their businesses to a whole new demographic. However, these types of events come with their own set of specific circumstances in which restaurants and vendors need to be prepared for — and that they need to protect themselves from.

First off, the more you know about the situation you’re going into or the event you’re scheduled to participate in, the better. This is key because your

extended coverage for these events will depend on exactly what is going on during the event. You’ll want to make sure that you have your own insurance and understand exactly what that insurance will cover and what it won’t for any off-premises event.

This will depend on not only your carrier but also on whether your current coverage will extend to the event. The extension of the premise may not. Some carriers have a designated premise of the endorsement, which will not allow their policy to cover the business at an event.

It also depends on the role your business is play-

ing at the event. For example, if you are a vendor of the event and not the host, the coverage requirements needed will be up to the host of that specific event and the city in which the event is being held, if it is held on city property.

If the host has insurance for their event, it doesn’t necessarily mean that if a vendor shows up there they would have coverage if they were pulled into a lawsuit. So before committing to an event, check with your broker or insurance company to see if that coverage extends.

Additional event coverage may require an added fee and your carrier will probably want to know the exposure basis of the event. This can include the size of the event and how many people are expected. This includes not only the total attendance count but also what percentage of those ticket sales include alcohol sales.

The carrier will likely specifically want to know the event’s estimated attendance count of people consuming liquor. That number will be taken into account differently than the total attendance count.

The carrier will also want to know what exactly is taking place at the event because anything from bouncy houses to ax throwing can become liabilities. It’s important to note that 99% of the time, these types of things are automatically excluded from a policy anyway.

For example, consider if you’re a vendor participating in an event and you have your own insurance coverage that protects you from liquor liability for serving people at the event. If there happened to be an accident due to ax throwing and they were to get sued based on the ax injury because of alcohol, there would be an exclusion altogether.

It is highly unlikely that a carrier will cover a vendor for those instances. That’s why it’s essential to recognize that in many cases, events with dangerous activities should be approached with a “buyer beware” attitude. You need to be cognizant that at these types of events, your company could be pulled into a claim or lawsuit that you may not have coverage for.

Major events and festivals are often seen as opportunities to make more money, get additional

exposure and get your name out there. However, if you aren’t fully aware of all the details of the event and all the things happening during it, you could be putting yourself at risk.

It’s also important to recognize that with proper coverage, your carrier should cover your business for the normal instances of serving alcohol at the event. But with exclusions for things like the examples of a bouncy house or ax throwing, you would not be covered. If there was a claim due to an accident that was excluded on the premises policy, then anyone and everyone participating in the event would be on their own to defend themselves in the case of a lawsuit.

However, if a person who consumed too much alcohol then decided to get into the bouncy house and broke both their legs may try to go after the vendors that served alcohol at the event, that would likely come out of their pocket, as an insurance would likely automatically decline it. On the other hand, if a patron drinks too much at the event and gets into a car accident, the vendor’s liquor liability coverage would likely protect them in that instance.

It's also wise to look for assault and battery exclusions on event coverage policies. Many of these events have assault and battery exclusions, meaning that if someone gets beat up at the event and wants to sue the host or a vendor, they will not have coverage for that.

While event season is heating up, we’ve continued to see pretty steady and fair market premiums for event and off-premises coverage. This is highly situational and also depends greatly on what the host city or venue requires in terms of coverage.

In many instances, two different coverages may be required — one from the city and one from the venue. Some cities may require coverages that are through the roof while others may only require a minimum limit. It is vital to understand what the municipality where the event is taking place is asking for in terms of limits on insurance.

For example, they may ask for $1 million or they may ask for $5 million. However, if they ask for the latter, this can be discouraging for vendors to participate. At that point, it becomes very difficult for a company to see the value in signing a piece

of paper for $1,500 for one day of $5M worth of coverage. It’s overkill, quite honestly because you already have all these participants carrying their own insurance, plus the venue, the event promoter and the city, which all have their own insurance as well.

To foster and encourage a sense of community through local festivals and events, the municipalities really have to keep it reasonable. On the flip side, the insured parties have to understand exactly what it is they are being insured for — and even more importantly, what they are not insured for. That will be determined on a situation-by-situation basis by the carrier.

Weddings can also create unique circumstances in terms of coverage. What falls on the venue and what falls on the vendor may depend on the venue and the situation as well. In many cases, we recommend that the client gets coverage for general liability and liquor liability. However, liability will likely fall on the venue itself if they are the ones serving alcohol.

It all comes down to making sure that whoever is serving the alcohol, whether the venue or the vendor, is well-trained and certified in liquor training. This is a key way to protect your business while also keeping staff and patrons safe throughout event season.

Out of his passion for serving the restaurant and hospitality industry, David DeLorenzo created the Bar and Restaurant Insurance niche division of his father’s company The Ambassador Group, which he purchased in 2009. For more than 20 years, he has been dedicated to helping protect and connect the hospitality industry in Arizona. For more information visit barandrestaurantinsurance.com.

Boost Summer Marketing Strategies

By: Hanifa Sekandi

It is summertime. It is a pivotal time for all beverage brands. It is an opportunity to capture a new consumer base and keep existing consumers loyal. It is also the best time to go rogue and experiment. Test your brand’s marketing limits.

Before you dive into the deep end, test shallow waters first. See how your audience responds to slight changes – changes that stand out but maintain brand familiarity. People should still know

how to identify your brand. So, keep key markers in place. For example, there is a better time to change or make adjustments to your brand logo. This should occur at the top of the year when most brands experience a dip in sales due to consumer behavioral changes. Dry January is a great time to revamp your brand. The summertime is when you push your brand to the forefront in a fun and colorful way.

There are many ways to boost your summer mar-

keting strategies. Many brands experience notoriety during the summer. An outsider can become a star brand overnight. Consumers are more open to new beverage brands during this time. Also, gatherings such as BBQs and festivals open the doors to beverage exploration. Take advantage of old-school marketing approaches, such as giving out mini samples of your beverage at events. This approach has proven to be successful for many beverage brands. As you begin to think of ways to benefit from this season, consider a summer label.

A short-order run of new labels is cost-effective. You can also repurpose these labels next time if you see a boost in sales and brand popularity due to an exclusive summer label. It also allows you to re-introduce your brand without developing a new product line exclusively for the summer. A fitting example of this is Busch Beer’s beer cans and packaging adorned with an image of corn. A label that their audience loves, and they repurpose it as a limited edition. The Bass Can limited edition run of their beverage is also notable.

Seasonal Beverage Labels & Packaging

Sometimes, products need a boost to be noticed. There are a lot of great beverages on the market that go unnoticed simply because of poor labeling and packaging choices. Also, even if they are aesthetically unappealing, popular beverages take centerstage. It is hard to cut through the beverage market noise. But it is certainly possible. Keep in mind that your beverage must meet consumer standards. There have been brands that have lost popularity due to poor beverage quality. Good ingredients paired with a palatable beverage are imperative. Brands can fix poor label decisions, but they cannot fix a poorly crafted beverage. Most brands do not aspire to go viral being known as the worst tasting beverage. Nor do they aim to be a one-hit beverage wonder.

You might assume that it may be too late to jump in on the summer beverage surge by developing limited-edition seasonal beverage packaging. It is never too late. Remember, this is a short run and a terrific way to grow your consumer base. Also, you can sell this limited edition until the beginning of fall. Market segmentation will also help you push higher quantities of this limited run to regions that maintain warmer temperatures throughout the year to help manage supply overages that may

occur. Research your demographic thoroughly. Therefore, you will know how to best allocate your beverage to retailers.

When designing your new beverage labels and packages, spend time researching colors and imagery that are symbolic of summer. For example, teal, white, yellow, orange and pastels captivate the senses. Coconuts, palm trees, water, sand, boats and ice cream complement summer imagery. Use subliminal marketing cues to draw people towards your beverage. Some full-bodied beers taste like milkshakes. The thickness and riches of the beverage give a desert-like experience. Is your beer the root beer float of ales? Play off flavor profiles to highlight your beverage.

Here is an opportunity to showcase the time and effort poured into the cultivation process. What is the star ingredient? What sunny destination does this beverage remind you of when you take the first sip? Is it capri or the cottage on a sweltering day surrounded by trees while sitting on a boat at the lake with friends listening to music? You are the designer of your brand's culture. Convince people to join in on the movement.

Get Bold with Cocktail Recipes

Everyone thinks they are America’s next best bartender once the party gets going. Developing new recipes to diversify a beverage experience is another way to boost marketing strategies. New recipes can be featured on blog posts and social media. Hire a master mixologist to craft summer cocktails using your beverage. Create further engagement with a call to action by asking consumers to display their at-home bartending skills by making a cocktail with your beverage.

Reimagine your beverage. Take the ordinary and transform it into something extraordinary. This is a wonderful way to test market new beverage variations. Recipes that perform well can lead to a limited-edition product line that is only available in the summer. So, what is in a great recipe? Since it is summer, lean towards ingredients that pay homage to warmer weather or destinations. Also, incorporate fruits or vegetables that are in season. They are readily available for your consumer. It demonstrates that you understand true recipe development. Restaurants often rework their menus to ensure they use ingredients during peak seasons.

Craft Brewery Brewery & Distillery

Summer fresh labels and packaging go hand in hand with expertly crafted cocktails that combine ingredients that favor warmer months.

Avoid complicated recipes; this is not a magic show. Also, it should be cost-effective so your consumer can invest more in your beverage than shopping for ingredients. Turn well-known beverages like slushies, milkshakes, sweet tea or lattes into a cocktail. A familiar beverage with a little kick is always favorable. For those who prefer to sip their beverage or prefer just one, this will go over well. A quality cocktail that is familiar, fun and tastes great will get your audience engaged and excited to give your recipe a try. Remember that summer when the frosé was trending? Any brand could make a variation of this refreshing icy beverage. Cocktail recipes are not just reserved for spirits, liquor and wine; beer can also be used to join the party. Beer

and espresso pair quietly nicely. This cocktail might beat out an espresso martini. Feeling extra bold? Add some vanilla ice cream.

High-End Merchandise

Subliminal marketing has many angles. The use of repetitive imagery via commercials and print ads is one route. Another route is high-end merchandise. Yes, the cool kids rummage through vintage clothing stores, looking for apparel from iconic beverage brands. It is not because they seek to make a fashion statement.

Moreover, brands of yesteryear did a great job with product development. They designed a cap that was both functional and well-designed. They used quality fabrics and designs that people felt proud to wear. There was an understanding that

Photo Credit: Baxton Brewing Co.

people wear things they like. Also, cheesy merch would be thrown at the back of a closet. A patchwork denim jacket featuring your brand is a great collector's item. When getting designs printed on t-shirts, opt for direct-to-fabric printing; it wears well over time. Also, select high-quality fabric. Whether you are giving merchandise away or making it available for purchase, people love wearing merchandise by their favorite beverage brand if it leans towards something you would find from a fashion brand.

Many generic clothing brands adorn their clothing with their logo. Walking into a bar and seeing a patron wearing a vintage Coors light t-shirt or baseball cap may entice patrons to order this and another brand’s beverage offering wearable merchandise. So, as you brainstorm ideas to boost your summer marketing strategies, consider a limited-edition merchandise collection. Research old and new popular merchandise from your competitors. What brands do you commonly see people wear while out? Are distressed t-shirts in, or are truck driver-style hats popular? Do not just paste your logo on items and think this is enough. Hire a

designer who works in apparel and merchandise. Have them dream up a merchandise collection. If you do not think this is a worthwhile endeavor, think again. Fender Guitars did a great capsule collection with Brixton apparel that sold quite well.

High-end merchandise is not only coveted but it is also sustainable since it is more likely to be worn and can be resold. Sellers on eBay who source iconic beverage brand merchandise make a lot of money and are always on the lookout for what will be a high-value item once it is discontinued. If you sell out of items, do not produce more. Scarcity and novelty drive demand. Re-introduce these items the following year or as a special holiday season gift people will receive when they purchase your beverage. Your goal is to drive beverage sales. High-end merchandise is a great branding tool to transform your brand's reputation.

By: Cheryl Gray

V Letting Off Steam: Steam Boilers and Other Options

ersatility. Safety. Efficiency. Temperature control. These are just some of the benefits that experts say boilers provide craft brewers and distillers.

Among the most popular options are steam boilers. Steam is considered an efficient method for heating processes because it evenly – and quickly – transfers a large amount of heat. Steam volume and velocity play important roles in this process. Sizing a steam boiler to fit the capacity needs of a brewery is also important. Too small a boiler will not do the job. Too large a boiler will lead to short-cycling, which will cut the life of the boiler and cause other problems.

In a brewery, the kind of heat that steam boilers use is essential for processes such as boiling wort,

keeping fermentation on point, creating flavor profiles, cleaning production areas and sterilizing equipment.

For distilleries, steam from boilers is as important as air to breathe. Boilers can produce an abundance of hot water at specific temperatures, a critically important function for replicating spirit recipes with a precision that guards against compromising product flavors.

Among the companies with expertise in manufacturing steam boilers for breweries is Hurst Boiler & Welding Company, Inc., which is headquartered in Coolidge, Georgia. The company was founded in 1967 and has since expanded its campus to nearly 17 acres, home to a 314,000-square-foot manufacturing plant that

builds all types of boilers for clients worldwide.

In going through a checklist for boilers, Hurst points out that many of its brewery clients also prefer steam models because they are non-flammable, unlike direct-fired heating options. Pressure relief valves are another feature that helps to ensure safe operation. Steam generated from boilers is also versatile since it can be used for multiple brewery operations beyond heating, such as powering mechanical equipment like pumps and motors. When it comes to cleaning, steam is known for its sanitizing properties. It kills bacteria and other microorganisms that can contaminate brewery products. Breweries can also use the steam to sterilize containers and packaging materials. Another good feature of boilers is that the steam created is environmentally friendly, giving users an option other than direct-fired heating, which is dependent upon fossil fuels. Finally, steam boilers are environmentally friendly. Steam can be generated using renewable sources, such as biomass or by way of energy recovery systems.

A rundown of popular Hurst products includes the Hurst Series 4VT Steam, a 4-pass, high-pressure vertical tubeless boiler. The company describes its Cyclone Steam Boiler with features that promise high efficiencies, lower fuel costs and rugged construction, including 6-100 HP, 201-3,450 MBTU/HR and steam to 250 PSI. The Hurst product has a compact design, comes factory assembled and is fully automatic and easy to install.

The product can also reduce NOx, or nitrogen oxide, which are poisonous to humans. This group of chemical compounds can cause respiratory issues and other types of illnesses, which is why it is important to minimize their presence in breweries and distilleries.

Hurst also has a line of firebox boilers, including its Hurst Series 45 and 100 Firebox Boilers. Its 3-Pass Firebox Packaged Boiler features a flexible three-pass boiler design that provides options for fuel flexibility, including gas, oil and combinations of gas and oil. It features 7.4-650 HP, 248-21,759 MBTU/HR, steam up to 15 PSI and hot water up to 100 PSI. The products are designed with the thickest, industry-wide boiler steel for 5 PSI steam/30 water. Features also include a unified refractory base floor, steel skids and lifting eyes.

Miura America Co., Ltd. is another boiler company specializing in steam boilers. This global company, based in Japan, has its United States headquarters in Rockmart, Georgia, with regional offices throughout the U.S. Experts at Miura say that many of its distillery clients consider the steam boiler an irreplaceable part of their operations. Those experts add that not only do distilleries need a limitless supply of water, but proper temperature control of water used in distilleries lowers the risk to workers and avoids compromises to the quality of products. Steam allows distilleries to add their finishing touches and helps to ensure the flavor profiles of the distillery products.

Steam boilers can also be used to control the temperature of an entire distillery operation. For example, many distilleries have a tasting area for visitors to try products, and some also offer tours. Both of these guest areas need air temperature control, and steam boilers can help with properly controlled steam heat. Miura considers the steam boiler the best industrial option for distilleries. The company says its boilers can start producing steam within five minutes of a cold start-up. That makes things cost-efficient for distilleries that don't have a need to operate 24 hours, seven days a week. The company also boasts that its steam boilers are easy to maintain. Inspections take far less time as compared to other boilers. In addition, if a distillery has more than one steam boiler, it means that while one is undergoing inspection, the rest can continue operation. These are options that help distilleries stay on production schedule.

Miura offers a variety of boiler options, including industrial steam boilers for breweries and distilleries, such as its ultra-low NOx steam boilers. The company designs the steam boilers for the present and future needs of the brewery and distillery clients it serves. Touting a compact design and easy operation, Miura also has modular boiler systems that assist in lowering operation costs and help meet fluctuations in steam demand. The boilers don’t have to operate around the clock, which saves time, boosts productivity and drastically reduces NOx emissions. The company’s multiple boiler system designs include a backup boiler with a smaller footprint that doesn't have to run all the time. Start-up breweries and distilleries can add capacity to their boiler rooms as their businesses grow, thus avoiding more costly upfront expenses. Safe operation is another major feature, with great-

er accessibility, easier system testing and the elimination of sight glass. Miura says its boilers maintain low-volume water in their tubes, thus limiting the dangerous risk of pressure vessel failures.

Olympic Distillers, headquartered in Port Angeles, Washington, makes distilling equipment of all types, including a full line of copper moonshine stills and beer keg distillers. The company provides a variety of stainless-steel equipment along with kits and parts. Olympic Distillers also has a full line of micro-distillery equipment for craft distillers.

Among their boiler products is the Jacketed Bain Marie Style Boiler, a 26-gallon model designed to prevent scorching. The boiler is equipped with a 240V dual-element heater controller. The boiler's features include a pressure relief valve, lighted overhead sight glass and a 10-inch access door. Its heating elements draw 4500w each. The still connection is a six-inch tri-clamp, and adapters are available to fit a four-inch flute on the boiler. There is another version of this product with a 53-gallon capacity and a 12-inch access door. The still connection is an eight-inch tri-clover.

Still smaller is the Jacketed Bain Marie Style Boiler, which has a 13-gallon capacity. This boiler, intended mostly for at-home distillers, is copper-lined and made from food-grade 304 stainless steel. It is 100 percent TIG welded and available with a two-, three- or four-inch copper lid. The two-inch tri-clover element port accepts Olympic’s single-element 4500w/240V electric heater.

Another product is the Single-Wall Boiler with a 53-gallon capacity. This boiler is made from 304 stainless steel. It comes with an agitator and 220V dual-element heater controller. The agitator is 240V 120w and 0.9 amps 1600 rpm. The still connection is four inches.

From steam to other options, boilers play an integral role in breweries and distilleries of every size. Experts say that steam options are becoming increasingly popular for every reason, ranging from environmental integrity to cost-effectiveness. Consulting with an expert company is the first step to determining proper boiler equipment for current needs as well as for expansion in the future.

Elevating Beverage Distribution:

The Case for AI-Driven Systems Over Legacy Platforms

By: Ian Padrick - Co-founder and CEO of Ohanafy

The beverage industry in 2024 is characterized by rapid evolution, driven by shifting consumer preferences, technological advancements, and new market dynamics. As consumers increasingly demand healthier and more customized beverage options, the industry is witnessing significant changes in product offerings and business operations. This landscape presents unique challenges and opportunities for beverage distributors, particularly those operating on outdated legacy systems.

Legacy systems, which have been the backbone of distribution operations for many years, are increasingly becoming a liability. These systems

are often inflexible, unable to scale with business growth, and lack the advanced analytics capabilities required to respond effectively to fast-changing market conditions. They struggle with integrating new data streams and automating processes, leading to inefficiencies in inventory management, customer relationship management, and overall supply chain operations.

A recent study by Aberdeen highlights a stark reality: businesses that spend 12% of employee time searching for data can incur up to $1.2 million in unnecessary costs annually for a company with 200 employees. This underscores the critical need for systems that enhance efficiency and profitability by

reducing wasted time and resources on inefficient data management.

In contrast, AI-driven systems offer robust solutions by harnessing the power of data analytics and machine learning. These modern platforms can integrate diverse data sources, providing a holistic view of business operations and consumer trends. This integration enables more informed decision-making and faster response times. Therefore, transitioning to AI-driven systems is not just about keeping pace with technological trends but fundamentally enhancing beverage distributors' strategic capabilities.

The Risks of Legacy Systems

One of the primary risks associated with legacy systems is their inherent lack of integration capabilities. These systems often operate in isolation, meaning that data silos are typical. When information cannot flow seamlessly between sales, inventory management, and customer relations, inefficiencies abound. This can include delayed order processing, inventory discrepancies, and a poor customer service experience, which can erode trust and reduce client retention.

Moreover, legacy systems typically lack scalability. As businesses grow and market demands shift, these systems struggle to adapt. This inflexibility can stifle innovation, as adding new features or expanding into new markets might require extensive manual intervention or even complete system overhauls, which are costly and time-consuming.

Another significant risk is the absence of robust analytics. Legacy systems do not utilize the power of modern data analytics, which is crucial for making informed decisions. Without these insights, companies may make choices based on outdated or incomplete data, potentially leading to a general lack of strategic decisions.

The AI-Driven Solution

Transitioning to AI-driven systems can effectively address these risks. AI-enabled platforms offer integrated tooling where data from various departments is consolidated, providing a unified view of the business. This integration enables more streamlined operations, from inventory management to customer relationship management, ensuring that

all parts of the business are aligned and efficient.

AI-driven systems are inherently scalable. They are designed to grow with the business, easily accommodating new functionalities or market expansions without the need for disruptive overhauls. This flexibility ensures that beverage distributors can respond quickly to market changes, a crucial capability in an industry as dynamic as beverage distribution.

Perhaps most importantly, AI-enabled solutions have advanced analytics and machine learning capabilities. These tools can analyze large datasets to uncover trends and patterns that might not be visible otherwise. For instance, predictive analytics can forecast demand more accurately, enabling better inventory control and reducing overstock and stockouts. Similarly, machine learning algorithms can enhance customer segmentation and personalize marketing efforts, increasing sales and customer loyalty.

Applications of AI in Beverage Distribution

The transition to AI-driven systems in the beverage distribution industry represents a significant leap forward in operational efficiency and market responsiveness. Here are several systems that stand to benefit from leveraging artificial intelligence to enhance various aspects of the distribution process.

Inventory Management: AI significantly improves inventory accuracy and efficiency. By analyzing patterns in sales data, AI can predict future demand more accurately, enabling distributors to optimize their stock levels. This reduces the risk of overstock, which unnecessarily ties up capital, and understock, which can lead to missed sales opportunities. For example, AI systems can integrate historical sales data with seasonal trends and promotional schedules to adjust inventory levels in real-time.

Route Optimization: AI-driven logistics applications can dramatically improve delivery efficiency by optimizing delivery routes and schedules. These systems analyze traffic data, weather conditions, and delivery windows to suggest the most efficient routes, reducing fuel consumption and delivery times. This cuts costs and enhances customer satisfaction through faster, more reliable service.

Customer Relationship Management (CRM):

AI enhances CRM systems by providing deeper insights into customer behaviors and preferences. This enables personalized marketing strategies, such as targeted promotions and product recommendations based on data-driven insights. For instance, an AI-enhanced CRM system can identify purchasing patterns and predict when customers might be ready to reorder or suggest new products they are likely interested in, thereby increasing the potential for upselling and cross-selling.

Sales Forecasting: AI algorithms excel at processing large datasets to identify trends that would be difficult for humans to spot. In beverage distribution, AI can analyze data across multiple channels to forecast sales with a high degree of accuracy. This allows distributors to better align their schedules and marketing strategies with anticipated market demand, reducing the risk of surplus and shortages.

Operational Efficiency: Beyond these specific applications, AI drives overall operational efficiency by automating routine tasks, such as order processing and payment transactions. Automation reduces the likelihood of human error and frees staff to focus on more strategic tasks requiring human oversight, such as customer service and business development.

Security and Compliance: With increasing data breaches and stringent data protection regulations, AI systems can also provide advanced security measures to protect sensitive information. Moreover, AI can help ensure compliance with industry regulations by monitoring and reporting deviations in real-time, thus avoiding potential legal and financial penalties.

Embracing the Transition to AI-Driven Distribution Distributors that have switched to AI-driven systems often report substantial improvements in operational efficiency and customer satisfaction. However, transitioning to a new system is not without challenges. It requires careful planning and a clear understanding of business needs. The key to a successful transition lies in choosing a platform that is not only powerful but also aligned with the business's specific needs and goals.

While legacy systems have served the beverage distribution industry well for many years, the rapid pace of technological advancement and changing

market dynamics make it clear that the future belongs to AI-driven solutions. By embracing these modern systems, distributors can remain competitive in an increasingly complex and fast-moving marketplace.

About the Author

Ian Padrick is co-founder and CEO of Ohanafy, the leading distribution management platform built on Salesforce. Before Ohanafy, Padrick has served in strategic roles at Salesforce, Veeva, nCino, Accenture, and Capgemini. He is highly regarded for his strategic vision and leadership within the Salesforce community and for continually advocating for the integration of AI-enabled technologies to enhance business operations and customer engagement. To get in touch, visit ohanafy.com/contact.

Producers of Craft Beer & Spirits Gain an Understanding of the Benefits of Remote Services

By: Rebecca Marquez - Director of Custom Research at PMMI

The COVID-19 pandemic was a learning experience for everyone. For craft beer and spirits producers, one of the most valuable lessons came from the necessity to rely on remote services in place of personal interaction to keep equipment running efficiently, maintain production, and update lines.

The experience proved remote services could deliver many benefits by enabling a quicker response when a problem arises, reducing costly downtime, optimizing machine/operation performance, and offsetting skills shortages.

As a result, even after pandemic-related restrictions on in-person visits ended, craft brewers/distillers have continued to request remote services and invest in the technology, which encompasses remote support, remote training, remote equipment monitoring, predictive maintenance, virtual factory acceptance tests, and online machine commissioning.

This commitment to remote services dovetails with other sectors in the consumer packaged goods industry, where a growing number of companies have adopted or plan to adopt remote services, according to Trends in Remote Services and Monitoring, a report published in January 2024 by PMMI, The Association for Packaging and Processing Technologies.

Remote Services

The most popular remote service is remote support, followed by remote monitoring, predictive maintenance, remote training, and virtual factory acceptance tests and online commissioning. Remote support involves remote troubleshooting, diagnostics, and repair and often can solve a problem more quickly and economically than an in-person visit from an OEM technician. The report notes that most software-based issues are already being addressed via remote support, and many mechanical failures also can be corrected remotely.

Remote monitoring extends remote support by equipping machines with sensors that monitor parameters such as temperature, pressure, and vibration, communicate this data via the Internet of Things, and rely on cloud computing for analytics.

Predictive maintenance works in tandem with remote monitoring. Analyzing the data captured by the digital monitoring tools makes it possible to predict asset behavior and perform repairs proactively. This reduces downtime and product loss, the major drivers pushing the implementation of predictive maintenance, according to another PMMI report, 2022 Challenges and Opportunities for Packaging and Processing Operations. Other benefits of adopting a predictive maintenance scheme include longer machine life and reduced parts requirements because replacements are installed as needed rather than on an arbitrary schedule.

Remote training can support onboarding and upskilling efforts, with instructor-led online sessions viewed as the most economical format. However, it should be noted that a significant number of craft brewers/distillers believe that a live instructor next to the machine delivers the most effective training. So, training is likely to remain a hybrid remote/ in-person model. Nevertheless, despite some resistance from older workers, the hybrid model could shift toward the remote side with the evolution of augmented reality and the potential the interactive experience offers to bridge the gap between remote and in-person training.

As COVID-19 restrictions have faded, demand for virtual factory acceptance tests and remote commissioning has declined. Many craft brewers/distillers prefer to evaluate new equipment in person, especially if it is a complex or custom machine.

Barriers to Adoption

Despite the benefits, the adoption of remote services faces some hurdles, including:

• The cost of the service, especially when

retrofitting machines.

• Limited in-house IT skills to maintain and update systems.

• The likelihood of having to deal with multiple interfaces across plants and machines and Cybersecurity risks.

Cybersecurity concerns remain high, but craft brewers/distillers have become less reticent about granting remote access as they have learned how to strengthen their IT networks and shifted to more secure access methods. The report predicts the use of externally managed secure networks and converged networks will grow at the expense of cell modem access and direct virtual private networks.

What’s Next?

The report concludes that remote services will continue to gain ground, particularly for support, troubleshooting, monitoring, and training. However, a hybrid remote/in-person model will remain because the advantages of an on-site presence sometimes still outweigh the time and cost savings associated with remote interactions.

Remote services capabilities will be on display at PACK EXPO International (Nov. 3–6, 2024, McCormick Place, Chicago), along with other beverage processing and packaging innovations. Ranking as the biggest packaging and processing event on the planet in 2024, the show will present 2,500 exhibitors spread across 1.3 million net square feet of floor space and foster idea-sharing among 40+ vertical industries. Highlights include free educational sessions, a myriad of networking opportunities, and solutions to address automation, production efficiency, sustainability, flexibility, and e-commerce needs, as well as other hot topics and trends. For more information, visit packexpointernational.com.

Rebecca Marquez was hired at PMMI in 2016 as a manager of business intelligence, responsible for the execution and analysis of PMMI’s internal market research projects. Ms. Marquez graduated from University of Wisconsin in 2008 with a Bachelor of Arts degree. She has completed the Data Analytics Certification for University Georgia (2020) and the TLP 360 Degree Feedback Program for Leadership Development (2021).

SPSCC Launches Craft Brewing and Distilling Program in Washington State

By: Becky Garrison

In 2018, South Puget Sound Community College (SPSCC) in Olympia, Washington launched the first associate degree program in the United States that focused on craft brewing, distilling and cider making. In comparison to institutes that award certificates upon completion of their programming or colleges that offer bachelor of science (BS) degrees designed to teach the science behind these arts, SPSCC's program includes instruction on the full range of practical skills required to one to open their craft establishment or secure employment as a brewer, distiller or cidermaker. Students enrolled in this program will learn the entire production process, including product development, packaging and label design, along with the necessary business skills required to operate a craft industry in the 21st century.

Washington State proves to be a logical site for establishing this practical craft-focused programming, given the role Pacific Northwest brewers played in launching the craft beer revolution. Currently, this state ranks among the top in the nation for the number of craft breweries and distilleries, as well as the production of apples for making cider.

SPSCC's Craft Brewing & Distilling Program

SPSCC partnered with Craft District, LLC to lease up to 10,000 square feet of space that includes classrooms, labs, a small-scale production space, offices and a conference room. Craft District oversees the Tumwater Craft District which is located within proximity to historic Olympia Brewing Company (1896-2003).

As noted on The Tumwater Craft District's website, "The district was born out of a Washington community vision for a handcrafted space for people, by people. Blending shopping, services, local arts and education, here you’ll find vibrant retail, dining and event spaces where friends and family can experience first-hand the collaborative, vibrant state of Pacific Northwest craft. Rooted in

Tumwater’s brewing history, Craft District blends a brewing and distilling educational experience with the region’s passion for all things crafted, from beer, wine and spirits to restaurants, boutiques and meetup and startup spaces. At the center, a 2,000-person amphitheater for live music and other events."

SPSCC Degrees Offered

Students can choose between two two-year tracks. The two-year associate in applied science (AAS) program focuses on the science and production of craft beer, spirits and cider and is geared toward those without a college degree. Those who already possess a degree in business can apply for their two-year Bachelor of Applied Science (BAS) program, which is designed to boost one's career in craft business management and quality assurance. In both programs, students have the option to enroll in two of the three tracks. Currently, over half of their students chose the brewing program, with approximately 35 percent choosing the distilling program and the remaining option for the cider program.

These programs are available to those who are 21 and older, with a mix of those looking to enter the industry, veterans seeking to expand their skill sets and retirees looking for a second career. The majority of the student body comes from the Pacific Northwest, though they recruit nationally. So far, the average age of their students is 37, with 80 percent male and 20 percent female.

Their inaugural cohort, which graduated in 2020, consisted of 25 students, though they can take a maximum of 120 students. Students are divided into four cohorts, each comprising a maximum of 30 students. This small size affords the students individual attention while ensuring that the facility does not become overcrowded. Also, this intimate space allows for considerable experimentation, with students encouraged to explore their creative side while receiving guidance on how to fine-tune

The first year of the program focuses on building a foundation in brewing, distilling and cider making. The following year, students will implement this theoretical knowledge into practical application by creating actual products, including developing the packaging and design, along with learning the necessary business skills required to operate a small startup operation. Their goal is that this program will lead to long-term, living-wage jobs for their graduates, which, in turn, will benefit both the local community and the surrounding region.

For those living outside of the Olympia area, most of their classes are available online, though they require three weekends per quarter on-site at their facility in Tumwater. In addition, they plan trips to equipment fabricators, such as JV Northwest in Camby, Washington, and agricultural hubs, such as Yakima's hop fields, which grow about 75 percent of the hops produced in the United States.

This hybrid model allows for a flexible schedule that can accommodate a wide range of experiences and lifestyles, from those new to the industry to veteran home brewers. Also, this hybrid model allows people with full-time jobs or other obligations, such as child or elder care, to participate in this program as they can work their schedule around their prior commitments.

Currently, they have one full-time faculty member: Dr. Chelsea Gustafson, the science professor. All other faculty members are adjunct professors who also work in the industry.

According to Jason Parker, co-founder of the Seattle-based Copperworks Distilling Company and an advisor to this program, this opportunity best serves two roles. One is helping people who are considering opening their own brewery, distillery or cidery make more informed decisions, which one hopes will help save some of the hobbyists from squandering their life savings. The other big value is having a place to send employees who have worked for a small company for a while and want to advance, but no one is available to train them on what they need and would like to know.

SPSCC Partnership with Percival Creek

Given that colleges cannot directly own a commer-

cial brewery or distillery, the South Puget Sound Community College Foundation formed an LLC to oversee Percival Creek. Slated for opening in Summer 2024, this tasting room situated in the Tumwater Craft District will feature select offerings created in part by teachers and students while also providing students with practical experience managing the business side of the beverage industry.

Percival Creek Brewing features bohemian pilsner and pale ale beers, with plans to feature a total of six to 10 taps highlighting the best recipes produced by students and staff. Currently, Percival Creek Cider offerings include blueberry and habanero-infused ciders, with Percival Creek Distilling striving to create spirits that blend well in cocktails. While they do not have a full cocktail bar, they will feature select cocktails, such as a Moscow Mule, made using Percival Creek spirits and a ginger beer made in-house, along with light appetizer options.

From a consumer perspective, visitors guests can soak into the area's rich brewing history, knowing they are helping to build up the next generation of craft makers. That said, Scott Carroll, the business director of SPSCC's Craft Brewing and Distilling, doesn't want people to purchase products from Percival Creek solely because they want to support a college. "The products need to be excellent. That's what we do. This is not really going to be that big of a reach because we have such terrific instructors and mentors."

Also, they partnered with Total Wine as a commercial partner to distribute their products to a broader audience soon. According to Carroll, this partnership benefits both parties. "We can use our capabilities as an educational institution and educate employees about how spirits are made, which will translate to a better guest experience when someone goes in to buy something from Total Wine."

The estimated cost for this program is around $2,000 per quarter, with their foundation making scholarships available to students. Other funding sources include work-study programs and workforce transition funds.

Detailed information about SPSCC's Craft Brewing and Distilling programs can be found on their website: https://spscc.edu/food-beverage-arts-hospitality/craft-brewing-distilling

Best Practices for Barrel Aging

By: Kris Bohm - Owner of Distillery Now Consulting

The process of putting distilled spirits into barrels whether it be for transportation or maturation is a centuries-old process.

There is a wonderful transformation that occurs when spirits spend time in a wooden barrel. Among the general public there's a perception that time is the only factor that matters when it comes to the quality of a matured spirit whether it be whiskey brandy or rum. It is known among distillers that age is only one of a multitude of factors that actually determine the flavor of the spirit when it comes

out of the barrel. In this article I'll break down some of the most critical factors that affect the transformation of spirits in a barrel. Lets jump in and break down the barrel aging and the best practices for it.

Distillation and Congeners

Distilling is the first step that will affect how a spirit matures. In the process of distilling the heads and tails cuts that are made by the distiller have a massive effect on the character of the spirit.

Whiskeys that are distilled with very tight cuts when matured for a long time will often come out of the barrel rather flat and often have a strong oak flavor. Whiskeys that are distilled with very broad cuts with a considerable amount of tails and oils left in the distillate often need a long time to mature but also will have much more depth than complexity to the finished whiskey.

Barrel Choice

When it comes to aging whiskey such as bourbon or rye in America it is a legal requirement to use new American Oak. There are still a multitude of options within the legal requirement of new oak. Barrels can come in many different sizes and also char or toast levels. All of these have a strong effect on the change in the flavor of the spirit. It is a bit of a misconception that smaller barrels tend to mature spirits quicker. Smaller Barrels have a larger surface area ratio to the amount of whiskey in the barrel. This increase in surface area forces the whiskey to take on more intense oak characteristics faster. While a small barrel may give the impression of a more mature spirit faster it is often overly tannic and not as well balanced in flavor as a whiskey that comes out of a full size 53 gallon barrel.

Storage Location

When barrels are being stored (commonly for several years) the location where the barrel is stored has a strong effect on the flavor of the whiskey. The environment where a barrel is stored also affects how much loss (evaporation) will come out of the barrel. Temperature range and humidity are two critical factors to consider when selecting a location for storing barrels. Barrels that are stored in a location that is relatively hot will typically see higher rates of evaporation compared to barrels that are stored in a colder location. The same goes for humidity when barrels are stored in an area that is humid they typically see much lower rates of evaporation then barrels stored in areas that are dry. This is not to say that the ideal location to store barrels is cold and humid as barrels stored in this type of climate such like the climate of Scotland have very slow maturation rates.

It is important to consider the overall climate and how it can be affected or changed to better control the maturation of spirits. There are many distilleries located in colder climates that will heat

their barrel storage warehouse to help speed up the maturation of the spirits. Some distilleries even go so far as to heat and humidify the air in a barrel storage space to speed the maturation while minimizing the evaporative loss of spirits from the barrels.

Air Flow

While temperature and humidity are two of the most important factors in barrel maturation, air currents also play a role in how spirits mature. It has been found that barrels that are stored in drafty buildings or near doors and windows that see air flow around barrels will often have much higher evaporative losses compared to barrels stored in a location that has minimal air flow or air exchange around the barrel.

What Happens in the Barrel

The maturation of spirits within a barrel is said to be both an additive and subtractive process. It is additive in that characteristics from the wood and the charring of the wood add tannins and lignins to the alcohol. The process of maturation in a barrel is also subtractive in that some of the less desirable components of distilled spirits evaporate out of the barrel as the spirit matures. When alcohol is placed within a wooden barrel the alcohol reacts with oxygen and is partially transformed into aldehydes. The continual exposure of the aldehydes to oxygen eventually transforms them into acids. These acids undergo esterification in the maturation process which can change the mouthfeel of the whiskey. This change adds to the complexity of flavor within the spirit.

Barrel Management

Creating consistent world class spirits is only possible through excellent barrel management. This is achieved through concise record-keeping and traceability. All barrels should be clearly labeled and identified. Clear identification allows the management handling the barrels to know the contents, age and trace information back to the distillation records of the spirit. There are great modern ways and technology to track and identify barrels but good record keeping of every time a barrel is sampled and or moved can be the difference between good and great spirits.

Age Statements

The statement of the age on the label of a bottle of whiskey will often be one of the defining factors in the perception by the consumer of the “quality” of the spirit. This perception can be extremely hard to overcome and will often push distillers to age their spirits to an age that is perceived as high quality.

To consistently produce a spirit that is of a certain age can be challenging or in some cases even impossible if there is not enough distilled spirits that is of the acceptable age to meet the age statement on the label. Consideration should be given early on to the quantity of barrels being produced to ensure adequate stock of spirits when the time comes to sell those aged spirits.

Pricing Modeling

Careful consideration and planning should be given to the expected final retail price of the spirits you intend to age in barrels. Nothing could be more detrimental to launching a new brand than being priced far above comparable competitors due to your cost of manufacturing being higher than anticipated.

A cost analysis must be done before investing money into aging spirits to ensure that the all cost of manufacturing including anticipated evaporative loss can be recouped with a profit in the manufacturing of those distilled spirits.

Building Your System

The perfect way to effectively mature and manage barrels of spirit is going to be different for every person. It takes a considerable level of planning preparation and continual execution to create consistent spirits. Planning your process before you start it and creating a system to effectively implement the plan is the best way to ensure when the time comes to bottle and sell your spirits the quality of the product will be top notch.

A Competitive Spirit

By:Tod Stewart

One thing typically leads to something else. Not sure if this is a law of physics, a law of nature, or just a thing. However, every now and then the second something is a fair bit different from the first, a second road takes you off track from where the first was steering you. Take the case of Alex Hamer.

IT project management was his first road, but, inevitably, the spirit(s) moved him elsewhere, onto a radically different - but in a way connected - path.

“I worked in information technology and project management for fifteen years before making the

switch to the spirits industry,” Hamer confesses. “I considered opening my own distillery, but fairly quickly realized that wasn’t what I was best suited for. While I was going through that investigative process, I also had my sights set on opening a festival exclusively for B.C. distilleries. In the end, I decided not to open a distillery, but created the BC Distilled Festival, and then went on from there.”

“From there” included establishing the Canadian Artisan Spirits Competition (CASC), one of the country’s most respected venues for craft distillers looking to grab a bit of limelight. A pretty ambitious gesture for an admitted noob to the field.

“When I started the Canadian Artisan Spirit Competition (CASC) I didn’t have any background in spirits competitions. I talked to a lot of distillers to find out what they wanted to see and not see in a competition, and also consulted heavily with Charlene Rooke, who became my lead judge.

“My IT background gave me good logical and organizational skills, which are critical in running competitions like this.”

Hamer’s “eureka” moment – when it first hit home that locally-made Canadian spirits could stand up to the world’s best – started close to home. “I remember visiting what was then called Victoria Spirits when it was operated out of a rural property on the Saanich peninsula, where Peter Hunt operated a fire-heated still. We tried their gin and the barrel aged gin. It was the first time it struck me that spirits could be made locally and involve some creativity.”

Knowing that small, artisan distilleries were making great products in his home province of British Columbia – and seeing that similar things were happening in several other provinces –Hamer established CASC’s goal to bring awareness and credibility specifically to this industry, and to help distillers demonstrate that their products were of high quality to their customers.

Hamer’s passion for local spirits, and his dedication to CASC, led him further into the world of spirits competition. In addition to CASC, Hamer took over operations for the Canadian Whisky Awards (CWA) in 2022 having met Davin de Kergommeaux, the founder and chair of the CWA, several years ago at the Victoria Whisky Festival. “I think he appreciated the expertise I had developed in running spirit competitions, and our values certainly aligned; for example, both competitions are judged entirely blind, we seek our expert judges, and not every entry is given a medal,” Hamer recalls, adding that de Kergommeaux handed over the reigns to Hamer to focus more on writing. (If you want to become an immediate expert in Canadian whisky –and take a deep dive into Canadian distilling history – check out de Kergommeaux’s Canadian Whisky: the essential portable expert, now in its third printing.)

Of course, including the word “artisan” in the name of anything immediately begs for a definition

– at least for the intended purpose. “I spent a lot of time thinking about and consulting to come up with our definition of artisan distilleries and spirits, Hamer admits. In the end, he settled on the following criteria.

“First, the spirit must be distilled and bottled by the original producer – not made on contract with another producer. Second, the distillery cannot exceed 100,000 litres of absolute ethyl alcohol per year, which is over 300,000 750ml bottles at 45 per cent ABV. Third, the distillery must be independently owned and operated; it can’t be a so-called small distillery owned by a large one. Finally, everything must be distilled; you can’t just purchase ethanol, proof it down, put it in a bottle and call it vodka – it has to be run through a still.”

For competing distillers, registration takes place from July to early September. Distillers can submit and pay for their submissions online. “We have early bird pricing, and discounts for members of Artisan Distillers Canada – the parent organization for the awards,” Hamer explains. “The pricing is marginal, so the first three entries are one price, the next three are lower, and so on. All this to say pricing runs from $150 an entry down to $80.”

Distillers can enter as many spirits as they choose (one distillery submitted 14 entries one year). “We average around three entries per distillery, which has been pretty stable over the years.”

The number of overall entries has continued to grow - as has the number of Canadian artisan distilleries. While Hamer keeps the total number of entires on the Q.T., he does reveal that he receives “a few hundred” each year. He also notes that one particular category is growing exponentially.

“Whisky is the one category that has seen the most significant growth. In 2018, for example, we awarded five medals in a single whisky category; this year we awarded 49 medals across three whisky categories – Single Grain, Single Malt, and 100 per cent Rye.” The gin and vodka categories have also grown and are now split into contemporary and classic styles (also flavored in both categories, and aged for gin).

So what, exactly, do competitors get for their money?

“Top award winners – Best in Class or Canadian

Artisan Spirit of the Year, for example – have had some great attention for their wins, and often see a significant increase in orders,” Hamer contends. “For spirits which earn medals, to some degree, what it means or how valuable it is depends on the distiller and how they choose to take advantage of the win. If they put the medal in a drawer and don’t mention it, it won’t mean much. But distilleries that celebrate their medals, get the word out, and include it in their marketing materials, will see the value of them. People like to know that a product has some expert validation, and even earning a bronze medal can be valuable in giving that spirit credibility.”

“Expert” validation. Okay, who are these experts who act as judges and how are they selected? Hamer outlines the criteria:

“We look for judges who have experience tasting and judging, and who have also demonstrated some exposure and understanding of artisan spirits. In many cases, they are different from commercial spirits. A classic example is vodka. Commerciallyproduced vodka will generally be as flavorless as possible, but many artisan vodkas have flavor or character left in on purpose. Judges who don’t have an appreciation for that aren’t suitable for CASC.” (I am pleased – and moderately humbled – to report that I was selected as a judge for the 2024 CASC.)

Once candidates are selected they are sent samples to score and comment on to determine the “fit.” It also helps provide some coaching or calibration where required.

As glamorous (perhaps even fun) as it may seem, I can tell you from first-hand experience that acting as a CASC judge is no picnic. Just organizing

yourself to get through a couple hundred samples before the deadline requires some discipline and planning, and it doesn’t take long when tasting spirits that palate fatigue (or palate numbness) sets in. I was, however, pleasantly surprised by the quality of what I tasted - and not necessarily in categories where I expected to find it. Sure, the whiskies – for the most part – were quite good; a few were outstanding. But what really blew me away were the aged gins and bitters. Though some were barely recognizable as “gin,” most of the aged gins were nonetheless complex, beautifully balanced, and extremely well made. And though we are used to a few drops here and there as part of a cocktail, just mixing some of these bitters with a splash of soda made for an entirely refreshing drink on their own.

Hamer agrees that, over the years, not only have submission numbers increased, but the overall quality has as well.

“The quality has definitely improved,” Hamer confirms. “We try to be as objective as possible in the scoring year over year, but the standards have increased over time. The number of spirits which aren’t awarded medals is pretty consistent. The spirits which don’t earn medals tend to have consistent types of faults.

“But at the top end of the competition, it’s harder to get gold medals than it was. There are more spirits which are higher quality, and there are only so many gold medals to go around.”

If CASC results are any indication, the future indeed looks bright for Canadian artisan spirits. The only downside is that due to limited production volumes, finding these spirits typically isn’t easy (even within Canada). However, for spirit enthusiasts south of our border, that border is close enough for a few of you to take a trip north. Our ever-growing distilling community would love to welcome you and treat you to a taste of true Canadian hospitality.

UNIVERSITY OF NEW ENGLAND JOINS FORCES WITH BREWERS’ AND DISTILLERS’ GUILDS AND INDUSTRY EXPERTS TO ADDRESS INDUSTRY TRAINING NEEDS

PORTLAND, Maine (May 21, 2024)

The University of New England (UNE) has announced it is partnering with craft beverage experts along with beer and distillery guilds to provide industry-specific training for staff across the U.S.

Recognizing the dynamic shifts in the brewing and distilling sectors, the collaboration, “Crafting Futures,” seeks to address the evolving needs of the craft beverage industry and support the continued growth of these sectors.

“Crafting Futures” introduces a tailored curriculum designed to equip industry professionals with the

skills and knowledge needed to navigate the evolving craft beverage landscape.

Recognizing the diverse needs of industry professionals, the program will offer flexible learning models, including online courses, workshops, and immersive experiences. This accessibility ensures that individuals across the industry spectrum can benefit from the program.

Beth Taylor-Nolan, Ed.D., dean of UNE Online, said, “We are excited about this new alliance and the opportunity to support the craft beverage industry. UNE is well positioned to deliver quality

education in collaboration with our industry partners, bringing practical, affordable, and accessible training to brewery and distillery owners, managers, and staff on topics that will help them address current challenges and prepare for future needs.”

“Over the last five years, the craft beverage sector has experienced dramatic changes,” said UNE Online Program Developer, Gregory Dunkling, M.A. “The University of New England, working closely with an advisory board, will address critical issues that senior staff in breweries and distilleries face today. Themes will include understanding brewery/distillery finance, how to best grow sales in a crowded market, and, alternatively, explore possible future merger and exit strategies.”

the evolution of both distilling and brewing, when change is happening so rapidly that we need to work together to navigate effectively,” Lodge said. “This kind of resource, with a team who is actively listening to see what’s needed, is vital to ensure smart planning and growth within both, albeit connected, industries.”

The collaboration, “Crafting Futures,” is poised to deliver educational training guided by an advisory board to create future

programming

McLaughlin added, “I am honored to be a part of such a distinguished group of beverage professionals committed to sharing knowledge and experience with the broader craft community. As a trusted advisor to hundreds of breweries throughout the United States and a brewery founder and owner, I look forward to helping the University of New England and its team curate content for this program.”

Dunkling added, “Our program will help senior staff determine the best path forward with the guidance of some of the most respected minds in the industry serving as mentors, along with valuable peer-to-peer insights. Meanwhile, the craft distilling sector is growing and technical training will be offered to assure high quality products.”

The current advisory board for the “Crafting Futures” Collaboration includes Heather Pilkington, Managing Director and CEO, First Key Consulting, the world’s leading brewing and beverage industry consulting firm; Matt McLaughlin, Esq., of Jackson, Mississippi, whose firm focuses on beverage law; Michelle Forster, former executive director of the Wyoming Brewers’ Guild; Julie Rhodes, president of Not Your Hobby Marketing of Colorado; Laura Lodge, owner/strategic advisor of Customized Craft Beer Program; Kary Shumway, chief financial officer of Wormtown Brewery, a certified public accountant, and founder of Craft Brewery Financial Training and the Beer Business Finance Association; and John Reynolds, president of BrewPlan, Inc. of Wisconsin.

“‘Crafting Futures’ is launching at a critical time in

The “Crafting Futures” collaboration marks a turning point for the brewing and distilling industries, setting a new standard for education and innovation. The program is set to launch inMay, with applications opening soon. For more information, visit Crafting Futures website.

ABOUT THE UNIVERSITY OF NEW ENGLAND

The University of New England is Maine’s largest private university, with two beautiful coastal campuses in Maine, a one-of-a-kind study-abroad campus in Tangier, Morocco, and an array of flexible online offerings. In an uncommonly welcoming and supportive community, we offer hands-on learning, empowering students to make a positive impact in a world full of challenges. We are the state’s top provider of health professionals and home to Maine’s only medical and dental colleges, a variety of other interprofessionally aligned health care programs, and nationally recognized programs in the marine sciences, the natural and social sciences, business, the humanities, and the arts.

Visit www.une.edu