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Buying New or Used Equipment & How to Decide
Buying New or Used Equipment &
How to Decide By: Kris Bohm, Owner of Distillery Now Consulting
When it comes to starting a distillery or a brewery it takes money to make it happen. In most cases it can literally take millions. The cost of the equipment is a big chunk of the cost required to start up a beverage alcohol business. Most folks who start a business will buy all new equipment. An alternative to the high price tag and long lead times of new equipment is to buy used equipment. When it comes to buying used equipment there can be many hidden costs and problems that come with what outwardly appears to be an excellent deal. By seeking to understand the hidden costs and potential problems that come with used equipment you may just uncover the perfect opportunity to land a deal on the equipment you need to start your business. Our aim is to help you avoid falling into the proverbial used equipment money pit. Let’s look through key considerations of buying used equipment and explore its potential.
There are many reasons for wanting to buy used equipment instead of new equipment for a brewery or distillery. Lead time is a strong factor that drives folks to look at used equipment. In 2022 there have been massive disruptions to supply chains across many industries. Beverage manufacturing equipment is certainly one of them. For many manufacturers of equipment they now have lead times of well over a year. That means from
the time you put a deposit on equipment to that equipment being delivered will almost certainly be beyond 12 months. The opportunity to buy used equipment and take possession of it quickly has become an attractive option as a result. The downside here is that used equipment is in high demand these days and as a result the price on used equipment has gone up.
There are many factors to consider when looking at used equipment. Age and condition are the two that are most important. As equipment gets older it can sometimes become hard to source replacement and repair parts. In some instances replacement parts do not exist and will need to be manufactured or redesigned which can be costly. The key here is to be diligent. Take some time to talk with the manufacturer and ask if they are available and willing to continue to support the equipment they built. Here is an example of a situation where this occurred.
There was an equipment manufacturer (who will not be named) but we will call them Acme in this example. Acme Company built equipment that looked great but their engineering and quality of manufacturing was shoddy. Acme went out of business only several years after opening due to lawsuits from equipment buyers. A person new to the industry bought some equipment from Acme second hand that was still in crates unused. The buyer quickly bought the new and unused equipment from a 3rd party seller at what appeared to be a good price but did not do any research. Acme is no longer in business, and buying replacement parts for the equipment is impossible. When the time came to assemble and start the equipment there were many missing parts. To make it worse the equipment needed major repairs just to function as parts of the equipment were not operable. For the folks who bought this equipment, they had to spend lots of money and time to have custom work done just to make the equipment function. The repairs and replacement parts were so costly that the buyer would have spent less money on new equipment from a reputable manufacturer.
If the equipment comes with automation and controls the age of the equipment is critical to consider. Some older equipment does not age well and can in fact be more outdated than an 8 track cassette player. This is not to say that old controls
or automation will not work, but there is a strong chance they can break and become unrepairable. If the used equipment is decommissioned and sitting in a warehouse it may not be possible to test the controls. If the controls cannot be repaired they may likely need to be replaced. The cost of replacement can eat up the money saved from buying used in the first place. Furthermore the cost of parts on older controls can sometimes be astronomical. The best way to test this before buying it is to buy equipment that is currently operational and can be tested.
An important consideration is the cost of relocation. The cost of taking possession of the used equipment can vary hugely from one opportunity to the next. In most cases the equipment can be removed quickly and cleanly in the hands of skilled tradesmen. Most of the time there is room to disassemble and remove the equipment and also a door that allows for easy removal. In some instances this is not that case. There are some facilities that are literally built up around the equipment. In most cases continuous column stills in distilleries are installed via crane. In these cases removal of the equipment can be quite costly and require extensive building demolition and heavy equipment to carefully extract the equipment from a building. In one instance we saw a distillery in which the column for vodka distillation was encased in a metal and glass shaft. To remove the column required extensive demolition and a crane to extract the column from the building. After reviewing a plan and considering the value of the column we found that the cost of removal and relocation was going to negate any savings from the lower cost of the used equipment. This instance was one in which the buyer backed out of the purchase after investigating the cost of relocating the equipment.
A common question asked by those buying used equipment is why are they selling it. The owner of the equipment can be selling it for a multitude of reasons, and it is an excellent question to ask. It is common for a business to outgrow its equipment capacity and sell its equipment to make room for larger equipment. Sometimes a business is closing permanently and is selling its equipment to liquidate the business. New entrants to the industry often ask how it works to buy used equipment. The transaction of buying used equipment is straightforward. The seller of the equipment and the poten-
tial buyer connect and work to meet an agreed upon price and terms on purchasing the equipment. The agreement will often include a written contract that stipulates what equipment is being sold, how much time is there for the equipment to be removed, timeframe for deposit and payments, details on process of decommissioning and costs associated. If the buyer of the equipment is unsure of how to approach this process it is wise to hire a group or consultant to assist with this process. Typically a 3rd party will handle the disassembly, crating and relocation of the equipment. The process of decommissioning and relocation definitely has a cost so it is important to consider this in the overall cost of purchase.
There are many factors to be considered here before buying used equipment. Although there are stories of bad deals, there are many more stories of success. In some instances, we have seen and helped folks save tons of money through buying used equipment. We hope you will give careful consideration when buying used equipment. If you are unsure whether or not to buy used equipment, it is best to bring in a professional to aid in your assessment of a potential purchase.
The Rise of Aquavit in the United States
By: Becky Garrison
The word aquavit derives from the Latin word aqua vitae meaning “water of life,” a testament to the belief held by early distillers that alcohol infused with herbs was a healing spirit. Also known as aquavite, akvavit, akevitt or snaps, this national spirit of Sweden, Norway and Denmark represents an integral part of Scandinavian culture.
A typical Nordic household has a bottle of aquavit in the refrigerator or freezer, which is brought out during festive gatherings like Christmas and Midsummer celebrations. Also, aquavit functions as a digestif in helping to digest rich food. Traditionally, Scandinavians shout skol (also skål) while maintaining eye contact as they down a shot of aquavit. Supposedly, this custom stems from the Viking sensibility of keeping one’s eye on others, even during a celebration to avoid potential threats. As a testament to aquavit’s celebratory role, the Historical Museum of Wine & Spirits in Stockholm, Sweden, currently lists over 200 drinking songs dedicated to aquavit, with new ones created each year.
Families without means often made aquavit at home, similar to distilling Prohibition-era gin in the United States. While these homemade brews tended to leave a very bitter aftertaste, aquavits
produced by licensed distillers elevated this spirit considerably.
Commercially produced aquavit tends to range in ABV from 40 to 45 percent, with most aquavit classified as Taffel Aquavit. This term refers to aquavit that is either entirely unaged or aged in spent casks that impart nearly no character. Aquavit found in other parts of Scandinavia use a base consisting of clear, grain-neutral spirits, though Norwegians often distill theirs with potatoes as a base. Also, Norwegian aquavit is usually aged in barrels.
Until recently, Scandinavians in the United States wishing to replicate these Nordic traditions had to rely on imported aquavit. The most popular imports available in the United States were Aalborg (Denmark), Linie (Norway) and O.P. Anderson (Sweden).
The first instance of aquavit produced in the United States can be traced to Christian Krogstad, founder of House Spirits and Westward Whiskey in Portland, Oregon. As his family is Norwegian, he grew up with the foods and drinks of Norway and a particular fondness for aquavit. As Krogstad reflects, “The caraway in aquavit is particularly good as a palate-cleanser if you have oily fish, like mackerel or pickled herring.”
Since aquavit is such a niche category, Krogstad focused his efforts on distilling gin while waiting for his American single malt whiskey to mature. However, distribution issues in 2006 prevented aquavit from being imported to the U.S. in time for the holiday season. So, he decided to produce some aquavit, which he made using a neutral corn spirit. He then maturated the botanicals and redistilled it.
His aquavit was kept at the distillery for marketing uses with no intention of selling or distributing this spirit commercially. But he discovered that whenever “cool kid” bartenders visited the distillery and sampled the aquavit, they indicated an interest in using this spirit at their bars.
So in 2007, he made a label for his aquavit and started selling Krogstad Aquavit. Even though House Spirits took a minority investment in Westward Whiskey from Diageo, he still retains full ownership of his aquavit. Recently, he added Krogstad Gamle Aquavit, barrel-aged in French oak pinot noir barrels from various Oregon wineries. Currently, this is available in about 42 states and online, with approximately 1,000 nine-liter cases sold per year.
The Growth of U.S.-Based Aquavit
Initially, the TTB’s Distilled Spirits Beverage Alcohol Manual (BAM) specified that only spirits possessing the flavor of caraway could be labeled aquavit. After receiving correspondence from an aquavit producer, which explained that Norwegian law allows aquavit to retain the flavor of caraway, dill or both, they amended the entry for “aquavit” on pages 4-13 to read: “A caraway and/or dill flavored distilled spirits product.”
This loose definition has allowed for experimentation among distillers in producing an aquavit that maintains the Scandinavian character of the spirit but has characteristics unique to that particular distillery.
Aimsir Distilling Co.
(Portland, OR)
According to co-founder Christine Hopkins, aquavit production emerged as their distiller’s passion project. “We learned a lot about aquavit together, and we got to try a bunch of aquavits, as my co-founder and husband, Steve, and I knew nothing about this specialty spirit.”
Their aquavit is made with the same neutral grain spirit used for their gin and vodka, which Hopkins describes as very caraway but balanced with fennel, star anise, a lot of citrus and a little bit of lavender. Most of their aquavit cocktails have been very summer-inspired, following the success of their Nordic Summer, a drink that includes aquavit, lime and Aperol.
Long Road Distillers
(Grand Rapids, MI)
While most distillers purchase their neutral-grain spirit for their aquavit, co-owner Jon O’Connor proclaims they craft all their small batch spirits from scratch using local ingredients. Around 2015, they distilled about 100 pints of aquavit as a passion
project. But after sending off a bottle to the Denver International Spirits Competition, where they tied for Best of Show with a $200 bottle of scotch, they felt they were on to something. “We just kept sending it off to these big spirits completions, and it just kept winning all these awards,” O’Connor states.
They use red winter wheat for their base spirits, adding a mixture of dill seed, fresh dill and caraway seeds along with curcumin, star anise, fennel and cinnamon. This recipe is also used in the Old Aquavit, which is barrel-aged in used whiskey barrels.
Norden Aquavit
(Chelsea, MI)
As a bartender, Robyn Cleveland, co-founder and distiller, explored making cocktails using unique ingredients. He fell in love with aquavit through a Danish childhood friend and his wife, who is half-Swedish. Cleveland created a brand focused on aquavit’s rich traditions with approachability and versatility as a cocktail ingredient at the fore. Cleveland says, “Aquavit’s potential was relatively untested outside areas with larger Scandinavian strongholds. It’s exciting to share the spirit with an ever-growing audience.”
At 45 percent ABV, their citrus-forward flagship, Original Taffel Style, embraces both caraway and dill along with clementine, coriander, angelica, orris, juniper, clary sage, staghorn sumac and anise. Also, they produce an American Oak Reserve using the same botanicals that have been aged for a minimum of 12 months in previously used rye casks.
Spirits of French Lick
(West Baden Springs, IN)
As a distiller and distillation historian, aquavit has always sparked head alchemist Alan Bishop’s interest. He opines, “Aquavit can trace its roots under various names back to the Aquavitae Treatises of the 1400s to1600s. It has deep connections to Sparagyic medicine, so three of my major interests were piqued: alchemy, history and complex botanical distillations.
Bishop notes they push coriander and caraway to the forefront of their aquavit, with a small amount of juniper and some floral and citrus elements. Their base distillate is a blend of both neutral and 100 percent oat whiskey spirits, which Bishop states provide mouthfeel, aroma and perceived sweetness.
Production of their Aquavit requires the production of three separate products. This involves highproof corn ethanol and 100 percent oat whiskey, both taken through the full distillation steps. Then there is the blending, hand-mashing of various botanical elements, heat-up digestion period and 24-hour maceration. What follows is the distillation of the finished product and heavy cleaning of the equipment, which is shared with other products.
Tattersall Distilling
(Minneapolis, MN)
When Tattersall Distilling began distilling in 2015, aquavit was one of the first spirits they made. “I have Swedish heritage, and my business partner has Norwegian heritage. So being up in Minnesota and given our backgrounds, we felt we had us an opportunity to make something unique that inter-
ested us,” Jon Kreidler, co-founder and chief officer, opines.
Their aquavit is caraway- and rye-forward with a base of organic, corn-based spirits. While Kreidler is aware some U.S. distillers use cumin in their aquavit, he discovered this use is due to a translation error from Swedish to English. Instead, he prefers to use 20 locally sourced botanicals, many of which are also present in their gin.
After customers expressed interest in their Tikistyle cocktails, they decided to bottle a coconut-infused version of their aquavit. “The citrus and pineapple create some very interesting notes when mixed with the caraway,” Kreidler notes.
Marketing Aquavit in the United States
According to distillers, the biggest challenge in marketing aquavit is that most consumers don’t know what aquavit is. When Hopkins markets aquavit at a farmer’s market and other public events, she educates potential consumers by calling it a Scandinavian-style gin. “Aquavit is very similar to gin, but the botanicals are different. As they already have the vocabulary for gin, using this descriptive term allows them to transition from gin to aquavit.”
Also, Vikre observes how some people think they won’t like aquavit as they don’t care for caraway or dill. This is especially true if they had a bad experience with an aquavit that was too caraway-forward. Cleveland adds that some Scandinavians need to be convinced that the poor quality aquavit of their youth does not represent the craft aquavit on the market today.
Vikre classifies her customers into two types. First
Vikre Distillery
(Duluth, MN)
As a Norwegian and American dual citizen, Emily Vikre grew up with a cultural understanding of aquavit as a celebratory spirit. Her aquavit starts with organic, Minnesota corn that she either distills herself or augments with Minnesota, organic spirits. Next, she combines direct and vapor infusions with 12 organic botanicals, including caraway. Also, she produces aged aquavit with used cognac casks. “These casks shift the flavors of how the botanical come through,” Vikre reflects.
are the people who wear Norwegian sweaters and celebrate the Scandinavian holidays. The number of people who fit this description varies according to the number of Scandinavians living in that particular region.
The second group is a growing collection of consumers interested in pushing the boundaries of craft cocktails. Within the cocktail culture, aquavit is emerging as a substitute for gin or vodka by those bartenders looking to offer a unique drink to their clientele. In particular, the caraway lends a tangy bite to a bloody Mary. Other cocktail recipes referenced by these distillers that can be made with aquavit include aquavit and tonic, banana daiquiri, dirty martini, eggnog, gimlet, julep with rye whiskey, mai tai, Manhattan, negroni, old fashioned and Tom Collins.
Select Scandinavian festivals held across the country from New Jersey to Portland, Oregon offer opportunities to embrace the Nordic culture. While some festivals are alcohol-free, others, like ScanFair held this year on December 11 and 12, 2022 in Portland, Oregon, include aquavit among their festive offerings. Shawn MacArthur, festival and fundraising events manager, opines, “Having aquavit at ScanFair is one of the many ways attendees can get a taste of a Nordic Christmas market! Along with food, shopping and activities, it’s the perfect way to kick off the holidays.”
Also, in 2012, Jacob Grier, co-author of Raising the Bar (Chronicle Books, November 2022), hosted Aquavit Week at Metrovino in Portland, where he served as the bar manager. He wanted to share his enthusiasm for the spirit and highlight its use in cocktails. Since then, it has grown into an annual tradition, with a range of citywide events and an opening party featuring a wide selection of aquavit, aquavit cocktails and Scandinavian fare hosted by Broder, a Portland-based Swedish restaurant. As the state opens up post-COVID, Grier hopes to relaunch Aquavit Week in January or February 2023.
