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Transcript of Artisan Spirit: Summer 2013
Summer 2013
5SpeedbumpS on the road to LegaL CompLianCe
the deviL’S in the detaiLS a miCro-diStiLLer tells all
the riSe ofCraft diStiLLing guiLdS
is your profit evaporating?
a new trade aSSoCiation joins the Craft revoLution
CF Napa Brand Design
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CFNAPAad_issueNo3.pdf 1 5/10/13 11:33 AM
27 3016a Letter from the editor 7
the JoyS of fLoor drainS 8Jan’s Corner
doing it anyway 10The Story of the Kill Devil Spirit Co.
we the peopLe 12The formation of the American Craft Distilling Association
from boat to bottLe 14Bluewater Distilling
ameriCan diStiLLing inStitute 2013 16An emerging distiller’s perspective
tapi uSa 18From Function to Recognizable Design and Purpose
a brand new day 20Painted Stave Distilling
the Spirit of Cooperation 23How State Distillers’ Guilds are Making the Industry Better
taking a Long Shot 27Catoctin Creek Distilling Company
“the big guy” 30What can craft distillers learn from Jack Daniel’s?
Let’S get Started 32Skip the 5 most common speedbumps on the road to legal compliance
are you ready? 34The realities of opening a craft distillery
firSt impreSSionS 37LabelOne
be the Change 39Lessons learned on the road to legalization in Delaware
SmaLL Company. big viSion. 41Loggerhead Deco
taking baCk the angeL’S Share 43AGRA Trading
advertiSer index 46
tabLe of ContentS
from the Cover
on the Cover: Spring44, distillery of Colorado Distillers Guild President Rob Masters. Photo by Petra Lansky.
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CFNAPAad_issueNo3.pdf 1 5/10/13 11:33 AM
volume 1 issue 3 Summer 2013
publisher Rockwell Rutter
editor Brian Christensen
Creative director Amanda Joy Christensen
photographers Amanda Joy Christensen Andrew Faulkner Firefly Imageworks Yip Ho Petra Lansky Jan Morris Lisa Simpson
Contributors Jason Barrett Lanette Faulkinberry Ron Gomes Chris Lozier Jim McCoy Jan Morris Katie Pyle Mike Rasmussen Lisa Simpson
Sales & marketing Ashley Monroe
artiSan Spirit magazine is a quarterly magazine by Artisan Craft Distilling University
www.artisanspiritmag.com
facebook.com/ArtisanSpiritMagazine twitter.com/_ArtisanSpirit
General Inquiries (509) 944-5919 Advertising (509) 991-8112
703 W. 7th Ave. Suite 220 Spokane, WA 99204
All contents © 2013. No portion of this magazine may be reproduced without the written consent of the publisher. Neither Artisan Craft Distilling University nor artiSan Spirit magazine assume responsibility for errors in content, photos or advertisements.
While artiSan Spirit makes every effort to ensure accuracy in our content, the information is deemed reliable but not guaranteed. We urge our readers to consult with professional service providers to meet their unique needs.
At artiSan Spirit, we take the opportunity to enjoy many different craft spirits and adult beverages. However, it’s also our responsibility, and yours, to always drink responsibly. Know your limit, and never drink and drive.
artiSan Spirit’s number one goal is to share and celebrate the art and science of artisan craft distilling. But please remember to follow all the laws, regulations, and safety procedures. Be safe, be legal and we can all be proud of the industry we love.
a little of what we do.
Thoroughbred Brands
The Guide
6 www.ArtisAnspiritmAg.com
thank you. thank you. thank you.Our mission at Artisan Spirit Magazine is to share and celebrate the art and science of artisan craft distilling. We are humbled by the support and sponsorship provided by Bruni, Pharmco-Aaper, Rogue Spirits, St. Louis Litho, and Tapi. With their help, we can further our common goals of supporting creativity, innovation, and integrity within the industry we all love so much.
SeriouSLy. thank you.
Rogue Spirits
St. Louis Litho
Tapi USA
Bruni Glass was founded in Milan in 1974. Bruni Glass’s core business is the
design of new forms of packaging. The technical staff takes great care in trying
to understand the latest aesthetic trends imposed by marketing, taking into
consideration the limitations of filling and closing technologies. The company’s
in-house staff of designers and its research and development team have turned
the company into one of the market leaders in terms of innovation and technology.
PHARMCO-AAPER produces Grain Neutral Spirits with total control and ownership of the alcohol from raw corn kernel to finished product. The entire operating system is fully dedicated from their production plant, railcars, storage tanks and filling equipment through to the final package. With ISO, Kosher and Organic operations, lot-to-lot testing, TTB expertise, multiple packaging options and 9 DSP warehouses across the USA, they provide absolute consistency and absolute quality from batch-to-batch to the beverage industry.
Celebrating their 10th Anniversary, Rogue Spirits is an artisan varietal distillery
creating award winning, multi-ingredient small batch spirits on traditional hand
crafted copper pot stills. Rogue Spirits has won 140 awards for taste, quality and
packaging and are available in 45 states and 5 countries. Since 2008, Rogue
has remained committed to saving the terroir of Oregon hops and barley, one
acre at a time by growing, malting, roasting and smoking their own.
An AC Label Company
St. Louis Litho has three locations nationwide with over 130 years of combined
printing experience. The team at St. Louis Litho proudly serves their customers
and works with them to build long term relationships that anticipate their future
needs so that they can grow together. With digital, flexo and offset printing
capabilities and a wide range of finishing techniques, St. Louis Litho can service
every aspect of your print packaging needs.
For over 60 years our company has produced cork stoppers and a wide variety
of bottle closures. Family-owned and operated since its inception, Tapi USA
continues to develop new products and enter new markets. Tapi USA is proud
to support the growth of the artisan distillery industry and is honored to be the
Bottle Closure Sponsor for the Artisan Craft Distilling University and Artisan
Spirit Magazine.
Pharmco-Aaper
Bruni Glass Packaging
www.ArtisAnspiritmAg.com 7
The industry’s skyrocketing growth is hard to miss, and makes
for an exciting topic of conversation. The future seems so bright
that it’s easy to lose sight of
just how much is happening
here and now. Sometimes we
forget to live in the moment.
Industry changes are not
just on the horizon, they have
already reached our doorstep.
Just in the last few months
we have seen the formation
and announcement of a new
trade association helmed by
a who’s-who of major players
in the industry (See page 12).
Laws are changing on an
almost weekly basis: new
tasting opportunities in WA
and OR, tax reductions in
British Columbia, DE pushing
through legislation to allow craft distilling (See page 39), the
NY distillers guild lobbying to update the federal excise tax for
craft distillers, and the list goes on.
Many of you are on the front lines directly driving the growth
and effecting the changes we are seeing. Yet, most distillers
are focused on something even more important to them: their
craft. While attending ADI in Denver this year I had a great
opportunity to discuss what a regular day looked like for craft
distillers. During one such conversation, I was informed of the
myriad duties my new friend was responsible for. Including, but
not limited to: communicating with distributions, drumming up
purchase orders, attempting to fill purchase orders, managing
production staff, ordering supplies, gathering additional
financing, budgeting resources, directing marketing campaigns,
handling social networking, working with the state guild, fielding
questions from startups, and so on. The distiller in question
finished his job description by adding, “And sometimes I even
make whiskey...”
That conversation, more than any other, illuminated the vast
workload each and every craft distiller faces on a daily basis.
I realize part of our job is to
help wherever and whenever
we can. One of the best ways
to do that is to gather and
share the information that you
need most. If you want more
news and information on the
legal side of the industry, then
say the word. Or perhaps you
want more stories of individual
distillers interacting with
their community and finding
suppliers. Maybe you need
a more reliable source of
information on distribution
strategies and sales campaigns.
Perhaps you want us to tackle
the topic of truth in labeling.
Whatever the case may be, we intend to find the information
and ask the questions you want answers to. Let us know what
topics and education you think Artisan Spirit Magazine should
cover next.
And remember, take a moment and appreciate that you are
experiencing one of the defining periods of the craft distilling
industry. You are living in the good old days, today.
Brian Christensen
CaLL: (509) 944-5919
emaiL: [email protected]
write: 703 W. 7th Ave. Suite 220 Spokane, WA 99204
meeting so many of you at the adi conference in denver was such a great thrill. you’re a fun bunch!
a Letter from the editor: It’s easy to get caught up in the enthusiasm for the future of craft distilling.
a Letter from the editor
8 www.ArtisAnspiritmAg.com
when we first started thinking of starting a distillery, we
sought advice from everyone. With respect to the building,
we were mostly advised about location and size. Only one person
told us about floor drains. So far, I have found this to have been
one of the best pieces of advice, ever.
We included floor drains in our plans and had three large
ones installed in our production area. I dearly love each one of
them. The floor drains are near our stills, and I have learned that
stills and spills go hand in hand. The floor drains are put to use
everyday.
Our distillery is an older building, and before it fell into
disrepair, it had been a hardware store. The floor is uneven, and
in the location of our floor drains, this is especially true. So, a
large squeegee is indispensable.
One of our first mishaps involved a river of foam. We were
alerted something was terribly wrong when we saw something
odd in the parrot’s beak at the beginning of a run. We opened the
still, and this beautiful gold foam began gushing out like a river,
and there appeared to be no stopping it. It just kept coming. We
ran back and forth with buckets trying to catch it as it poured
out, but there was foam everywhere. At least it was pretty and
smelled nice. Once again, floor drains to the rescue.
Because our building was a hardware store there are lots of
holes in the floor. These parts of the building, where there are
holes in the floors and large gaps in the old hardwood floors, I
like to call ‘self-draining’. No need to invest in floor drains here,
or so I thought.
Most of the holes have been plugged, but some were missed.
Last summer a little girl was fascinated with the floor holes in
the tasting room, and kept trying to push candy through them.
Finally she succeeded and was reduced to tears. I believe that
there is a saying about this.
Some of our fermentation takes place in these self draining
areas. While we were at the ADI conference in Denver one of
our fermenters, which was full of fruit honey mead, tipped over.
While we were miles away and blissfully unaware, the spillage
oozed its way into the holes and cracks in the floor. From there
the sticky mass flowed, like a warm moist glacier, into the
basement. This sounds like it might be good news, but it landed
everywhere. We have spent many hours scrubbing, and the job is
not done. If only we had floor drains everywhere!
Floor drains. They can bring great happiness, and you cannot
have too many of them. If you are looking for advice on your
building and layout, this is the best that I can give to you.
Jan Morris owns and distills at the Hardware Distillery Co. with her husband Chuck. They are located in Hoodsport, WA. For more info visit www.thehardwaredistillery.com or call (206) 300-0877.
the JoyS of fLoor drainSJan’s Corner
written by Jan Morris photos courtesy of
The Hardware Distillery Co.
jan’scorner
THe joys Of
fLoor drainS
10 www.ArtisAnspiritmAg.com
They say that youth is wasted on the young. Ray Digilio, 31-year old founder and CEO of Kill Devil Spirit Co. (San Diego, CA)
begs to differ. He’s put his youthful energy and innovative ideas to work since he started his distillery in 2011. In the past
couple years, he’s built quite a following around his spirits, and currently exists as the only “all craft” micro-distillery in southern
California. They even took home the Bronze medal for their “Ugly California Moonshine” at the World Spirits Competition this year
(it’s a wild combination of flaked rye and Caramel Vienna malt, fermented in open cypress wood tanks).
For all their success, Ray had to overcome some obstacles along the way. But by working with local resources like home brewers,
guilds and other distilleries, he was able to cut through the challenges and emerge victorious. We asked him what he considered to
be the biggest obstacles new distillers should watch out for, and this is what he had to say:
Lack of UndersTanding: We were
continually rejected in the search for a warehouse in which
we could manufacture distilled spirits. It became evident that
landlords and people in general, are afraid of the things they
do not understand. The only way to overcome that obstacle is
to explain the “magic” of distillation as a high school science
teacher would explain the “magic” of gravity; that is, that there
is no magic involved at all.
Lack of financiaL sUpporT: We were too broke to buy large and automated manufacturing
equipment and were initially concerned that this lack of funding
would pose as a barrier to entry in the market. We were told by
“experts” to make larger purchases, produce higher amounts of
spirits or face an inevitable demise. This turned out not to be the
case. We have come across many mixologists and retailers that
are specifically attracted to our distillery because of its unusually
small or “nano” capacities.
doing it anywayThe Story of the Kill Devil Spirit Co.
d o i n g i Ta n y w a y
t h e s t o r y o f t h e K i l l D e v i l S p i r i t C o .b y R o c k w e l l R u t t e r ||| P h o t o g r a p h y b y Y i p H o a n d A r t D i r e c t i o n b y A l f r e d o V i l a n o
www.ArtisAnspiritmAg.com 11
Lack of Time in The day: Unless
you are gifted a large sum of money or you have accumulated
a substantial amount of savings over your career you will need
to have a day job to support your business. In addition to your
day job it will become quite clear that the day job is actually
less demanding than perfecting the craft of distillation (and
fermentation if you do not have prior experience). Much like
learning how to play a musical instrument, distilling takes many
long hours of concentration and can sometimes be quite tedious.
If you plan on having a social life in the beginning or even a love
life for that matter, you may want to consider keeping the craft a
hobby instead of a lifelong profession.
governmenT red Tape: It took years for
us to get through all of the red tape. We had to lease a warehouse
space, buy equipment, and sit on the associated costs for nearly
a year before we got our basic permit. The best advice I can give
to someone who is applying for state and federal licensing is BE
NICE TO THEM!
working wiTh disTribUTors: There is only one thing that comes to mind when I think of a
major distributor: MONEY. When you are starting out as small as
us, distributors could care less about who you are or what you
are trying to bring to the market. That’s why it’s so important
to reach out to your consumers, build a dialog with them and
create demand from the ground up. This is the most important
aspect of our success. There is no doubt that one of the barriers
a new distillery may encounter is the fact that even if thousands
of people want to purchase your product the demand cannot be
serviced until a distributor gives you the green light. Give them
a reason.
Don’t be discouraged by what you’ve just read. Anything worth
doing is often difficult, and it is this difficulty that forces you to
appreciate the eventual fruits of your labor. In fact, it can be said
that were it not for the obstacles placed in the path, the craft
distilling industry would be overrun by substandard participants
and products. Let’s embrace the blood, sweat and tears that this
art requires. When you see the look on your customers’ face the
first time they sample your spirits, it will all be worth it.
Kill Devil Spirit Co. is located in San Diego, CA. Visit www.killdevilspiritco.com for more information.
12 www.ArtisAnspiritmAg.com
While these exact
words may not have
been spoken, this was
the general idea when
a few visionaries from
the industry banded
together just a few short
months ago to form the
American Craft Distilling
Association (ACDA).
As an official 501(c)6
non-profit organization, ACDA has one simple goal: to promote
and protect artisan distilling in the United States. Ex-Officio
member Dave Pickerel says, “The trade organization is supposed
to take people from the ends of the earth who are broadly
interested in the same goal, and bring them all together for the
common good.” Until now, distillers have been more or less on
their own in trying to lobby support for our beloved industry;
there simply wasn’t a strong unified voice. Now, these few brave
souls aim to change that.
With the experience and knowledge that this group is armed
with, they know the road ahead will be long and arduous.
Executive Director Pennfield Jensen says, “One of the things
we’ve got going against us is the amount of misinformation that
exists in the public and with lawmakers. It’s hard for the little
guy to go out on their own; that’s why we started ACDA.”
Strong organizations begin with a strong foundation. It’s easy
for a few people to come together with big hopes and dreams of
changing the face of an industry, but in order for there to be any
lasting power, a certain amount of structure has to be put into
place. For example, while membership in ACDA is open to anyone,
voting rights are limited to only those members who are federally
licensed producers.
Doing so ensures
that the future of the
organization is guided
by those who really have
skin in the game, while
still providing a valuable
resource for the up-and-
comers.
Membership dues
are based on a sliding
scale, dependent on how many proof gallons removed from bond
a distillery produces in a year. A small shop shipping out less
than 5,000 proof gallons annually can expect to pay around
$200, while the larger scale distillers producing up to 100,000
annually will contribute about $5,000, with several levels in
between. ACDA is committed to bringing those dollars right
back to the distillers, however, with benefits like wholesaler and
retailer support, member representation at trade shows, annual
conferences and more.
With this kind of leadership in place, members can rest
assured that ACDA will steadily move towards its goal of
supporting the industry in any way possible. “Our focus will be
on brand building, public outreach, and advanced educational
workshops and seminars. ACDA is not a lobbying organization,”
Jensen adds, “But we will support legislation that improves the
business environment of craft distillers on national and state
levels.” One example of this strategy is the good relationship
ACDA has with DISCUS (Distilled Spirits Council of the United
States), a lobbying group working tirelessly to advance the
interests of distillers.
Sometimes, being a good leader is knowing when not to
we the peopLeThe formation of the American Craft Distilling Association
by Rockwell Rutter
12 www.ArtisAnspiritmAg.com
wet h e
peopLeof the craft distilling industry, in order to form
an organization of protection, awareness and prosperity
for ourselves and our brethren, do ordain and establish
the American Craft Distilling Association.
www.ArtisAnspiritmAg.com 13
reinvent the wheel. Rather than becoming bogged down in
bureaucratic red tape, ACDA elected to model the organization
on a similar brewer’s association. Basing the general structure of
ACDA (including the bylaws) on an already successful entity has
allowed them to begin the real work in record time. As an added
benefit, this relationship brings craft brewers and craft distillers
closer together, making both organizations even stronger and
more powerful in the pursuit of their shared goals.
Going forward, ACDA aims to expand their services in support
of both new distilleries and those already established. Says
Pickerell, “one of the things that has been kind of forgotten [in
other organizations] is the importance of not just supporting
people when they are in the startup mode, but it’s also supporting
people once they are fully operational.” With this in mind, ACDA
plans to offer programs like subsidized internship programs,
industry data reports and of course, good old-fashioned tasting
competitions.
It’s clearer than ever that exciting changes are happening in
our industry. Like the craft brewing explosion that took place
in the 1980’s, the voice of the craft distiller is growing ever
louder. ACDA is taking on the job of coordinating the call for
all craft distillers’ common needs and goals so the message
is shared by one joyful choir, rather than a screaming horde.
The formation of the ACDA is a strong indication that the craft
distilling industry is maturing in a healthy direction and building
a foundation for future prosperity.
Visit www.americancraftdistillers.org for more information on the American Craft Distilling Association’s activities or to join.
offiCerS President rory donovan Peachstreet Distillery
Vice President ted huber Starlight Distillery
Secretary/Treasurer brett JoyCe Rogue Ales & Spirits
board memberS raLph erenzo Tuthilltown Distillery
todd LeopoLd Leopold Brothers
Lee medoff Bull Run Distillery
tom potter NY Distilling Co.
Chip tate Balcones Distillery
riCk waSmund Copper fox Distillery
andrew webber Corsair Artisan
ex offiCio member dave piCkereLL
Staff pennfieLd JenSen executive Director
Leah hutChinSon Marketing Director
www.ArtisAnspiritmAg.com 13
Global Package/Estal Packaging
14 www.ArtisAnspiritmAg.com
while most of us
have enjoyed a tasty
libation or two aboard a boat,
how many can say they created a
spirit on the water? For John and
Jessica Lundin, this is more than just
a crazy idea. Prior to starting Bluewater
Distilling in Everett, WA, the husband and
wife team were avid sailing enthusiasts. One
evening after discovering a bottle of wine had gone
bad, they decided to distill it into something they might
be able to drink. Unfortunately the experiment went
as badly as the wine tasted, but it planted the
seed of an idea that eventually led them to
open up their own operation.
John had grown up around homemade
spirits; his mother was famous for a
black currant liqueur created through a
long-standing family recipe. It was only
a matter of time before John decided to
try his hand at craft distilling. Working in
the construction technology field for many
years instilled in John a “get-it-done”
work ethic, which came in handy when
starting Bluewater.
“I developed Bluewater in the darkest
depths of the recession, when capital was
frozen,” says John. “It forced me to go
back to the drawing board and tighten
up budgets, making the operation as
lean as possible.” In doing so, John and
Jessica are proud to say they were able to
open the distillery without taking on any
venture capital money.
The pair’s ability to find creative
solutions to tricky problems didn’t stop
from boat to bottLeBluewater Distilling
BLueWATeR DiSTiLLiNg:
from boatto bottle
WRiTTeN BY ROCkWeLL RuTTeR
PHOTOgRAPHY PROViDeD BY BLueWATeR DiSTiLLiNg
www.ArtisAnspiritmAg.com 15
there. After selecting their building, John bought a MIG welder
and set about building out the distillery exactly the way he
wanted it. “Everything in the shop was custom welded - from the
firebox that supports my still to the bottling tables. I’ll continue
to build equipment, and am currently working on a
corking machine.”
With a unique distillery comes unique
products. Bluewater has become
known for their 100% organic
vodka and gin and is currently
one of only two distilleries
involved with the One Percent
for the Planet Network, a non-
profit group that works toward
promoting sustainability in
business practices. One of the
guiding principles of Bluewater
is their commitment to using
only 100% organic ingredients,
free from genetic engineering and
chemical pesticides. According to
Jessica, “We have a tremendous respect for
the natural world, and we want to communicate that
passion and curiosity through the style of the company.”
That commitment to quality is paying off. Just this year,
Bluewater’s Halcyon Gin won “Best Washington Gin” at the
2013 GINvitational and placed second in the overall category.
While awards are nice, John and Jessica remain focused on what
really matters to them: their customers. When asked what keeps
him motivated, John says, “Mostly, it’s the look on people’s faces
when they try our spirits. With the market being as competitive
as it is, being able to reach people via tastings or visits to the
distillery is crucial. They can learn about what drives us and the
passion we pour into the spirits. My favorite part of having built
our own distillery now is being able to meet our customers and
have a conversation with them. My wife and I can always end the
day saying that we have the best customers.”
Emboldened by their success, John and Jessica are looking
toward the future. Knowing that community
involvement is so important, they’ve started
a guild called “Local Liquid Arts” which
promotes craft beer, wine and spirits in
Snohomish County, WA. They’re also
involved with numerous community
fundraisers, which allows them to
reach out to new customers while
giving back to the community
that has been so kind to them.
Things inside the distillery aren’t
slowing down either. According
to John, “We’re hitting our sales
goals, and still able to anticipate the
next few steps. A small distillery will
always have some capacity restrictions
and it’s important to not overextend too
much. I developed our shop to handle three stills,
but it’ll take time to build up to that level of production.”
When John and Jessica aren’t busy making those award-
winning spirits, they find time to get back to their shared
passion that started it all: sailing. “We have a beast of a metal
sailboat coming into the shop soon,” says John, “It’ll be a bit
of a challenge keeping production moving unhindered while we
build out the boat.” While taking on such a huge project might
bring another distiller pause, the Lundins don’t bat an eye. Just
like everything else, they’ll find a way.
Bluewater Distilling is proudly located in the Craftsman District of the Port of Everett (WA). Visit www.bluewaterdistilling.com for more info.
LabelOne Connect, Inc.
16 www.ArtisAnspiritmAg.com
American Distilling institute President Bill Owens addresses a crowd of approximately 900 at the opening of ADi’s 10th Anniversary Conference, Tuesday April 2, 2013, at the Sheraton Denver Downtown Hotel.
Written by Jason Barrett Photo by Andrew faulkner/American Distilling institute
ameriCan diStiLLing inStitute’S10th anniverSary ConferenCe:an emerging distiller’s perspective
It’s amazing the difference a year can make. This is my
second trip to ADI, and as you would expect two days in
Denver learning about distilling and sampling incredible spirits
was a fantastic experience. Last year in Kentucky I was just
dreaming about starting a distillery and the information was
overwhelming. Now, after a year of research, business planning,
pitching banks and preparing to start my build out in May, I was
more than ready to tackle the conference.
There were numerous highlights this year from the convention.
Of the panels I attended the smoked grain seminar put on by
Darek Bell of Corsair was of particular interest. The research
they shared sparked many interesting ideas about what kind of
experimenting and production procedures I could implement in
my own distillery. I also greatly enjoyed walking the vendor floor
and getting into deep discussions with my still manufacturer and
barrel provider. And let’s not forget about getting the opportunity
to taste so many different products in one place. The tasting
experience helped me think deeper about the taste profile of my
own products and the goals I plan to achieve.
Imagine walking into the grand ballroom of a hotel and there,
crowded around six banquet tables, is a throng of people all
laughing and sipping little glasses of whiskey, pouring new
samples, and comparing notes. After a few minutes of delicate
maneuvering you are able to work your way to the front when
you realize that each table is covered and almost overflowing
with dozens of bottles, each filled with a different spirit from all
over the country. Every table has a theme: Gin, Vodka, Whiskey,
Rum, Liqueurs, and Oddities. On each of these tables are the
wares of our industry. It’s a tasting frenzy and you’re just trying
to make up your mind. Finally you resign yourself to the fact that
you cannot taste them all nor can you intelligently survey this
ever-changing smorgasbord. Kindly sharing a pour with perfect
strangers and then discussing the liquid, never fully knowing if
they are this spirit’s creator, competitor, or just a casual observer
like yourself.
For many well-researched distillers ADI is much more of a
social experience. I saw old friends, made some new ones, and
benefited from the opportunity to talk shop in person with such a
wide range of attendees. But as I reflect on what happened that
week, I ask myself what can we really get across in a one hour
ameriCan diStiLLing inStitute 2013An emerging distiller’s perspective
www.ArtisAnspiritmAg.com 17
panel discussion? The panels often provide wonderful overviews,
and prove to be very thought provoking. The details of most of
our complex business processes could take a full day of lectures
to cover each topic in depth and that’s usually not an option for
the constraints of a trade show.
As I look back through my notes and photos, I have to ask
myself if I will attend next year. Unfortunately, the answer is
probably not. I say this because at that point in time my distillery
will have had product on the market for approximately 6 months
and it will be a full court press to reach profitability before our
startup funds run dry.
Second, I ask myself what I will gain. I have found my suppliers
for most of what I need, I have built a network of distillers that
spans the continent who I can call in the event that I have a
burning question that I need help working through. Finally, I
will be in the midst of discovering the formula for success for
my business and my location. And in all honesty, I am not naive
enough to assume that my two years of planning, SBA loan
paperwork, or my business plan have all the answers I need once
I launch the business.
If there is one thing I would like to see added to next year’s
convention, it would be to includ sessions that focus on distillers
working together to grow the industry, reduce excise taxes, and work
on educating the public about our wonderful products. A rising
tide raises all boats and if we can educate the American public
about the options they have for alcohol we will all benefit greatly.
ADI was great for me as both a dreamer and as a startup
distiller working to begin my company. It would have taken me
a great deal more time and effort to compile all that I learned
there on my own. I am so thankful to the artists who have come
before me and return year after year to teach and give back to
the distilling community. I hope that in the near future I will also
have the opportunity to give back. I strongly believe the value of
ADI lies in its ability to encourage and foster the dreamers and
startups struggling to get a foot in the door.
The industry veterans have less to gain but much more to give
at this kind of event. It’s great that as an industry, the pioneers of
our movement are so open to sharing this knowledge. I promise
you once we are over the initial hurdles of a new business I
also will return to ADI to share my hard-earned wisdom with the
dreamers and startups that sit in the seats where I looked up
starry-eyed not that many years ago.
Jason Barrett is a distiller and managing member for Black Button Distilling in Rochester, NY. For more information visit www.blackbuttondistilling.com or call (703) 791-9702.
Artisan Still Design
18 www.ArtisAnspiritmAg.com
In the beginning there was only
function. Clay or glass bottles
were sealed with what might have
been a piece of wood with some cloth
and tree pitch. Later the Romans
began to use rough pieces of natural bark cork. Whatever the
closure choice the function was the same — hold the liquid
in the container and keep the stopper and outside air from
adversely affecting the product.
Not long after containers appeared on bazaar shelves the
design and aesthetics of the package began to gain importance.
Design and product identification would be used to help
consumers identify products and influence purchasing decisions.
In our industry today each brand wants to identify itself to its
customer base and to exhibit the highest quality packaging the
retail price can afford.
Although plastic threaded closures and aluminum roll on pilfer
proof closures have arrived to seal many of the value brands, the
bartop stopper is still recognized as the historic link to the first
bottles and an indication of premium or handcrafted products.
Just as in the wine industry where a cork still has a romantic
appeal, so does the bartop stopper in the spirits industry.
Starting in the late 20th century modern plastics, coloring and
synthetic materials widened the array of possibilities for bartop
stoppers and allowed bottlers to differentiate their packaging
with innovative and decorative closures. These synthetics have
allowed the bottler to eliminate much of the dust, taint and
variability inherent with natural cork. Good quality natural cork
will always have a place in the spirits industry but this link to the
origins of bottling is less dominant than in the past.
As the spirits industry continues to grow and become more
competitive, packaging innovation is required to help identify
the product and to make it stand out on an ever more crowded
store shelf. In the end, just like the
beginning, the closure and bottle
must function well together and
quality suppliers must have the
processes and equipment to test
and to work with an ever-changing set of materials. Unique and
innovative bartop stoppers along with well-crafted bottles are the
basis for creating a package that will attract the customer and
help them identify it again after they have enjoyed the product
inside.
To get a better look inside the world of bartops we reached out
to one of our sponsors and industry supporters, Kevin Dunbar of
Tapi USA. Kevin is the sales manager at Tapi USA, and has 20
years of experience in the packaging industry and has worked
with bottle and closure manufacturers worldwide. We asked
Kevin to share with us a little of Tapi’s story in an effort to learn
what makes a large bartop supplier tick.
what made tapi decide to enter into the craft distilling market?
Several years ago, under new government laws there was an
opportunity for growth in the number of allowed distilleries. We
noticed some of the larger glass manufacturers putting money
into courting these emerging distillers. After many years in
Europe, we were just entering the US market with our synthetic
stoppers, so the timing to jump in made it a perfect fit for us.
how has your business grown in the recent years?
When we first entered the US Market in 2007 with synthetic
closures everyone was polite but cautious. The larger companies
did have some experience with synthetics but not necessarily a
good experience. There was a desire to explore synthetics as an
alternative to natural cork and ensure their supply chain, but
they needed to do a lot of testing and qualifying. So, it took
tapi uSaFrom Function to Recognizable Design and Purpose
TAPi uSAfROM funCtion TO
ReCOgNizABLe deSign AND purpoSe
W R i T T e N B Y B R i A N C H R i S T e N S e N
18 www.ArtisAnspiritmAg.com
www.ArtisAnspiritmAg.com 19
several years for us to become established in the US like we were
in Mexico and Europe.
what is the number one thing a new craft distiller should consider before deciding on a closure?
The number one thing any package developer must consider
is their customer. They must imagine them coming down the
store aisle and looking for something. Consumers have some
expectation of what they are looking for and the package must
meet some threshold of familiarity and quality in their mind. The
package must be recognizable to the customer for what it is and
at the same time there must be something about the package
that makes them say, “Oh this looks interesting….it looks a step
above or, different from, this other package sitting next to it.”
how do tops affect what bartenders think and feel about a product?
They are more like an experienced consumer and advisor to their
customers. At some point you must get the bartender to pick up
your package for that first try. Bartenders realize that many of the
products with stoppers are on the top shelf for a reason.
how does tapi work to best serve the craft distilling industry?
We handle bartops with a choice of natural and synthetic cork
capped with wood, plastic, acrylic or metal. Entrepreneurial
distillers can get the call for a new product from a distributor and
need product delivered in a matter of days. Because their owners
can make packaging decisions autonomously they can design a
package quickly and move to production just as fast.
what kind of additional support do you offer your clients?
We try to help our customers with their package as a whole.
Our connections with the label folks, bottle decorators, glass
manufacturers and even other closure manufacturers are put to
the task of helping the customer produce the highest quality
package their money can afford. After participating in thousands
of glass bottle packaging projects we have seen a lot and lend
this experience to the package developer.
one of tapi’s quotes is “the stopper is the last impression someone has of your product before they taste it.” how important is it really for an overall product presentation?
Customers want to have a historical connection to a package.
Bordeaux drinkers are comfortable seeking quality in a Bordeaux
shaped bottle. Spirits drinkers are looking for a top shelf
experience with a stopper. I have had numerous brand owners
tell me that nothing moves a package up the shelf faster than
adding a stopper. We have had customers that changed to a
threaded closure and then changed back to a stopper due to
public reaction. There is a place for threaded closures, and we
sell plenty, but nothing takes the customer back to the origins of
bottle packaging like a stopper. A quality stopper is a cue to the
drinker that something special is about to touch their lips.
what are your plans for growth in the coming years?
We will keep adding inventory to help move our artisan customers
into the market quickly and less expensively. Shelf space is
becoming more crowded every year and to differentiate them,
our customers will find us ready with new and creative closures
and decorations.
what about the industry excites you the most?
The people you meet are all so interesting and enthusiastic about
their craft. The industry is young and hip and even old guys like
me who have been around for a while get a kick out of a new
product launch or a fun convention to attend. The bottom line
about this industry is the excitement to be a part of a team that
develops a functional, recognizable design with a purpose.
For more info on Tapi’s full product line, visit www.tapiusa.com or call (866) 492-7501.
www.ArtisAnspiritmAg.com 19
advertiser: Napa Valley Distillery, Robert Contrerassize: 1/4 page horizontal, RIGHT HAND pageissue: Summer, 003contact: Mike McDaniel at WordLab / 831-869-1631 / [email protected]
Napa Valley Distillery
20 www.ArtisAnspiritmAg.com
When it comes to the legal side of being a craft distiller
most of the ‘been there, done that’ distillers will be
able to tell dark and difficult stories, enough to scare most starry-
eyed, wanna-be distillers back to their day jobs. That’s not the
case with Mike and Ron from Painted Stave Distilling (previously
known as Legacy Distilling). Their story is one of history in the
making.
Ron Gomes and Mike Rasmussen met through a mutual
friend and realized they have three very important desires in
common. The first desire was to start a craft distillery, second
to start it in Delaware, and third to focus on creating premium
spirits from local ingredients. They were both excited to bring
together the creativity from their past experiences; Ron was in
medical research and Mike worked in education and non-profit
leadership. The goal: to combine their talents and successfully
produce and market their own spirits.
Starting an artisan distillery, especially one of the first in
Delaware, doesn’t come without many challenges.
Firstly, regarding the legal aspect, the absence of a law
in Delaware that allowed the opening of a craft distillery was
both a hurdle and a blessing. “We were fortunate to be able to
learn from distillers in other states about what we should and
a brand new dayPainted Stave Distilling
Painted Stave Distilling:
A Brand New DayWritten by Lanette Faulkinberry Photograph provided by Painted Stave Distilling
www.ArtisAnspiritmAg.com 21
should not have in a supportive law, and also fortunate that we
had great support and connections in Delaware to help move
the law forward,” noted Mike. The benefit of helping draft the
laws in conjunction with Dogfish Head, the well-known Delaware
brewery looking to add a distillery, was that they didn’t have to
compromise their plans because of any legal restrictions. The law
was passed in just over 6 weeks!
Secondly, finding the correct location is essential for the
success of any new distillery. Painted Stave, after a long search,
settled on the small town of Smyrna, Delaware. The town was
looking to revitalize their downtown with a local brewery, but
after talking to Ron and Mike the town was on board with their
plans. They finally decided on an old movie theatre that a local
contractor refurbished into an amazing space of over 4200sf for
production and 2000sf for tasting and event space.
Funding was another challenge. Most big banks met their
business plans with skepticism, but after the laws passed, it
became a little easier and they got the funding thanks to help from
the local SBA and a smaller local bank. With their SBA resources
they were able to concentrate more on the business and less on
the loan. “It came down to relationships to solve these problems”,
according to Mike. They believed in cultivating and educating
allies along the way and living up to their passionate message.
Painted Stave is currently working on launching a Premium
Vodka and Western Style Gin flavored with locally sourced
botanicals. They take great pride in the fact that almost
everything they need can be locally obtained, and have a strong
focus on community development. “Almost everything we need
can be found in less than 50 miles.” Plans are also in the works
for a white whiskey, aged gin, and flavored vodka. They also plan
to begin aging whiskey and brandy for release in coming years.
Ron and Mike have been inspired by other distilleries in their
openness and willingness to help, give advice and share their past
mistakes. Their advice to new distillers is simple, “Say thank you
a lot.” The relationships they built have opened more doors than
they could have imagined. “In turn, we have been sure to use
every chance we have found to sing the praises of the people who
have helped us get to where we are. This is not something you
can do all on your own; appreciate that and give back whenever
you can,” says Mike. What keeps them moving forward is the
support they have received from friends and family, the high
expectations that they have set for themselves and being held
accountable to their own high standards.
Painted Stave Distilling in located Smyrna, DE. For more information visit www.paintedstave.com or call (302) 300-0587.
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the Spirit of
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h o w S t at e d i S t i L L e r S ’ g u i L d S a r e m a k i n g t h e i n d u S t r y b e t t e r
written by ChriS Lozier
www.ArtisAnspiritmAg.com 23
whiLe Craft diStiLLing iS expLoding in popuLarity, the percentage of customers choosing to buy craft spirits versus
long-established brands is still relatively small. Every bottle of craft
spirits sold is a triumph not just for that distillery, but also for the
craft community as a whole. Recognizing the need to promote not
only their brand, but also their industry, many craft distilleries are
working together. Erik Martin, co-founder of Aria Portland Dry Gin,
calls it “coopetition,” saying “it is easy to think that we are all
competitors, but in reality, we are all in this together and it serves us
well to work with one another in cooperation against the large, well
financed, international brands.” In this cooperative spirit, many
states now have distillers’ guilds that help individual distilleries
accomplish more with a collective voice.
All of the craft distilleries operating in a particular state will face
the same challenges that are unique to that state, many of which
come in the form of restrictive or prohibitive state laws. Craft distilling
as we define it today, according to Coppersea Distilling CEO Michael
Kinstlick’s white paper, “The U.S. Craft Distilling Market: 2011
and Beyond,” began in 1982, and did not experience much growth
until the turn of the century. At most, the federal and state laws
governing distilled spirits production have had 30 years to evolve
and adapt to this young industry. In reality, since the rapid growth
really only began around 2000, the legal landscape has had just over
the Spirit of CooperationHow State Distillers’ Guilds are Making the Industry Better
24 www.ArtisAnspiritmAg.com
a decade to change, which is not enough time to accomplish
much of anything when both the state and federal government
are involved. As a non-essential industry, these restrictive laws
would never see change if it were not for the work of the guilds
and distillers advocating for that change.
The laws were not designed to be restrictive, they were just
designed to govern the macro-distilling approach to distilling
and sales, which does not often fit the craft distilling approach.
The production and promotion of alcohol is one of the most
regulated industries in the U.S., effectively putting small
distilleries in a David and Goliath situation. It is very difficult for
these businesses to lobby for legislative change when they have
already incurred the large debt and time commitment of opening
a distillery.
Many distillers found that to get something accomplished,
you have to approach lawmakers as an industry rather than as
a single business. Tyler Dyck of Okanagan Spirits said that they
approached lawmakers by themselves in 2003, but found that
“they don’t talk to individuals, they only talk to organizations.”
They started the Artisan Distillers Guild of British Columbia with
3 members, and have since grown to 12. Their collective efforts
focused through the guild are effecting legislative change.
Likewise, in 2007 New York passed the Farm Distillery Act
that has been of great benefit to craft distilling and has resulted
in the establishment of 27 new craft distilleries, to date. Ralph
Erenzo of Tuthilltown Spirits and a small group of wineries and
fruit distilleries approached their legislators with their ideas and
showed them the validity of what they wanted to accomplish.
The legislators listened to the group and the new law became a
reality. Erenzo says, at the American Distilling Institute’s panel
“Creating a Distilling Guild,” that after the act was passed into
law, these businesses “realized that as a group you could actually
get something done.”
As the New York Distillers Guild moved forward, they also
lobbied for and received a subsequent amendment to that law
that allowed craft distillers to offer tastings and sell their spirits
at county and state fairs as well as farmers’ markets. Similarly,
Erik Martin and the Oregon Distillers Guild passed HB 4092
in Oregon that accomplished nearly the same thing. This was
something craft distillers could not legally do before in these
states, not because the previous laws sought to prohibit their
success, but because the previous laws never saw this coming.
Large distillers never needed to sell their spirits at farmers’
markets because they had fully functioning retail avenues
established through liquor stores. However, for a new craft
distiller it is very difficult to convince that same liquor store to
take a chance on your product. Now, with these new laws, craft
distillers in Oregon and New York have the opportunity to reach
the LawS were not deSigned to be reStriCtive, they were JuSt
deSigned to govern the maCro-diStiLLing approaCh
to diStiLLing and SaLeS, whiCh doeS not
often fit the Craft diStiLLing
approaCh.
www.ArtisAnspiritmAg.com 25
the LawS were not deSigned to be reStriCtive, they were JuSt
deSigned to govern the maCro-diStiLLing approaCh
to diStiLLing and SaLeS, whiCh doeS not
often fit the Craft diStiLLing
approaCh.
more customers in wider markets.
Craft distilling is a rapidly growing industry and it did not
become so by accident. The movement was started by motivated
entrepreneurs that knew if they wanted to succeed they had to
actively promote their businesses. They saw value in creating
craft spirits that championed small business, local agriculture,
and unique, high quality products. Through the distillers’
footwork and promotion, many consumers learned to think the
same way and the craft movement became increasingly popular.
The industry is growing not just because of a lack of varieties of
spirits, but because craft distilleries do things differently, locally
and uniquely.
Ralph Erenzo says it is essential for your guild to promote
yourselves in this way. Many states have programs that will
provide funding for growing industries like craft distilling, and
he says “they will invest in it if you can come to them with a
good argument of why they should and what it’s going to return
to them.” He goes on to say that as a guild, “you’re not just
representing yourself, you’re representing agriculture, tourism,
tax revenue, and job creation,” all of which are beneficial to your
state. By educating your state lawmakers and agencies about the
positive impacts craft distilling has on your state, you are able to
gain their support when it comes to passing beneficial legislation
and acquiring funding to promote the industry. A guild can help
them to see that by passing beneficial legislation they are not
just benefitting you and your distillery, they are creating new
opportunities statewide in many different fields.
For instance, Tyler Dyck and the Artisan Distillers Guild of
British Columbia were able to change the tax laws regarding craft
spirits sales in B.C. Originally, the tax markup on craft spirits in
B.C. was 170%, but now, if you use 100% B.C. ingredients, you
will have 0% tax markup. This results in more spirits sold by
the distillers, more customers buying craft products, and more
locally produced and purchased agricultural products. And, as
a result of more spirits being sold, production will increase and
more jobs will be created to keep up with that production. This
is a winning proposition not only for distilleries, but also for local
agriculture, tourism, job creation and revenue, benefitting the
Province many times more than the original tax would have.
If your state does not already have a guild and you would
like to start one, begin by looking at how other distillers’ guilds
are organized. Most guilds are 501 (c) 6 non-profit trade
organizations, which allows them to advocate for political action
at the federal and state level. They can also accept donations
and raise money for the guild that can be used to promote craft
distilling. Former Oregon Distillers Guild President Erik Martin
suggests seeking legal advice to organize the guild properly if
you are not sure how to do it yourself.
In order for the guild to be successful and beneficial to its
members and the industry, it has to be active at several levels.
One thing it needs to do is actively promote craft distilling to
the public. In Oregon, Ryan Csanky, co-founder of Aria Portland
Dry Gin, created The Oregon Artisan Spirit Tasting, or TOAST,
event to generate public interest in craft spirits. It grew into the
largest event of its kind in the nation, promoting craft spirits
and generating revenue for the guild. The Washington Distillers
“you’re not JuSt repreSenting yourSeLf, you’re
repreSenting agriCuLture, touriSm, tax
revenue, and Job Creation.”
Guild is hosting their first public tasting event, PROOF, this year
in hopes of accomplishing the same thing. Colorado Distillers
Guild President Rob Masters said their event, Dstill, drew a
crowd of more than 1500 this year, going on to say that “regional
development of such events will create a spider web across the
country of outreach to the consumer to help educate on the
merits of craft distilling.”
A distillers’ guild also needs to represent craft distilling to
entities like the state department of agriculture, because they
often have funding and channels of promotion available to viable
state industries that support agriculture, tourism, etc. Promotion
and legislation often go hand in hand, and when you promote
craft distilling by championing its benefits, the government and
public alike will respond positively and support legislation that
favors the industry.
The large task of running a guild requires an active group of
leaders and members. It is good to form a leadership board that
guides the guild’s direction, but it is too large of an undertaking
for just a few leaders. Erik Martin says the Oregon Distillers
Guild has “an ‘Active Board’ – in that the Board of Directors are
the ones who carry out the day to day operations of the Guild.”
Their board is comprised of a president, vice president, treasurer
and secretary. These four are not alone, however, as they are
supported by board members on committees to address special
projects. He says this is not only helpful to the four directors, but
to the guild members, as well, because the more direction and
support a distiller gives the guild the more their voice is heard. In
addition, the more distilleries that participate, the more widely
and evenly the workload can be delegated amongst them, making
everyone’s job easier.
Each distiller that participates in their guild brings a unique
set of talents and abilities that are very valuable to the guild’s
success. Almost every bit of new legislation that is beneficial to
craft distilling came about because the right people had the right
talents to successfully approach and convince their legislators to
hear them out and take action.
Currently, the New York Distillers Guild is working alongside
the Distilled Spirits Council of the U.S. (DISCUS) and other
state guilds to lobby for a reduction of the federal excise tax
from $13.50 per proof gallon to $2.70 per proof gallon for the
first 65,000 proof gallons produced by the distillery. To help
the bill’s passage, DISCUS is encouraging individual distillers to
write their state representatives. The directors of DISCUS know
that the best way to gain the legislators’ attention is to introduce
them to the entrepreneurial distillers that built the industry into
what it is today. The combined voices of these active, talented
individuals will demonstrate that craft distilling is a beneficial
industry worthy of legislative consideration and promotion.
SpeCiaL thankS to. . .
artiSan diStiLLerS guiLd of britiSh CoLumbia
Tyler Dyck — Okanagan Spirits
CaLifornia artiSnaL diStiLLerS guiLd
www.cadsp.org
Melkon Khosrovian — Greenbar Collective Distillery
CoLorado diStiLLerS guiLd
www.coloradodistillersguild.com
Rob Masters — Spring44
iLLinoiS diStiLLerS guiLd
Paul Hletko — Few Spirits
new york diStiLLerS guiLd
www.nydistillers.org/wp
Ralph Erenzo — TuthillTown Spirits
oregon diStiLLerS guiLd
www.oregondistillersguild.org
Erik Martin — Aria Portland Dry Gin
waShington diStiLLerS guiLd
www.washingtondistillersguild.org
Jason Parker — Copperworks Distilling Co.
26 www.ArtisAnspiritmAg.com
www.ArtisAnspiritmAg.com 27
iLLinoiS diStiLLerS guiLd
Paul Hletko — Few Spirits
new york diStiLLerS guiLd
www.nydistillers.org/wp
Ralph Erenzo — TuthillTown Spirits
oregon diStiLLerS guiLd
www.oregondistillersguild.org
Erik Martin — Aria Portland Dry Gin
waShington diStiLLerS guiLd
www.washingtondistillersguild.org
Jason Parker — Copperworks Distilling Co.
it takes real guts to walk away from a successful career in
the hopes of starting your own craft distillery. With all the
obstacles and seemingly insurmountable hurdles in your path,
you’d have to be a little bit crazy to turn in your comfy 9-5
plus benefits. Nevertheless, that’s exactly what Scott and Becky
Harris did when they started Catoctin Creek Distilling Company
in Purcellville, VA in 2009. We reached out to Scott to see how
things were going 5 years after beginning their journey.
aSm: Scott, can you give us a little background on yourself before your distilling days?
SH: I graduated from Georgia Tech with a degree (and then
a graduate degree) in Computer Science, and spent 20 years
in telecommunications and government systems (this is why I
drink). Life in the early days of my career was good, but honestly,
I just burned out and thought to myself that I was spending way
way too much time doing PowerPoint for a living, and there had
to be a better way to spend my next 40 years than behind a desk
in some lifeless fluorescent-lit office.
aSm: what got you moving in the direction of becoming a craft distiller?
SH: I finally asked myself, “Well, then, what DO you want to do
with your life?” (Mid life crisis raging, as you can see), and I
kept coming back to the job that I had when I was 15 years old
and working in a winery. That was fun work, productive, and you
could hold in your hands the work of the season. I valued both
the work ethic and the connection to the land. But I decided
to take that idea and apply it to my love of spirits. I wanted to
make whiskey! So I set to writing a business plan, miraculously
convinced my chemical engineer wife, Becky, to be president
and chief distiller of the company, got some financing, and we
were off!
aSm: what kind of challenges did you face as you got going, and how did you overcome those obstacles?
SH: We started our company in 2009, in the pit of the big
recession. Honestly, it is a miracle that we got financing, but we
did in fact secure a SBA loan for the start-up of our company.
Considering I had no experience, this was truly a miracle. With
money in hand, we went through the substantial process of
federal and state licensing, and the non-trivial zoning process.
By January 2010, we were distilling the first legal drops of
alcohol in Loudoun County since Prohibition.
aSm: what keeps you motivated day to day?
SH: Seeing a customer with a drink or a bottle of my stuff,
taking a Long ShotCatoctin Creek Distilling Company
TAKING A LONG SHOTa n i n t e r v i e w w i t h C a t o c t i n C r e e k D i s t i l l i n g C o m p a n y
Photos by By firefly imageworks
28 www.ArtisAnspiritmAg.com
whether it’s in a restaurant or an off-premise store, is what keeps
me going. When they tell me (or I overhear them saying) that they
love our stuff, that is gold to me. That is a job well done.
aSm: what about the craft distilling industry excites you the most?
SH: There is still so much room for growth and the customers
show real passion and enthusiasm about our products. I love
explaining what we’re doing and having those long conversations
with people, many of whom are just starting to get into whiskey
or gin.
aSm: what can you tell us about your line of spirits? what makes them special?
SH: Mosby’s Spirit is our white whiskey. It is organic and
kosher certified, and made from 100% organic rye. It is what
our forefathers in Virginia were drinking, all the way back to
George Washington. It is a lovely white rye whiskey, and a nice
replacement for vodka in most recipes.
Roundstone Rye is our biggest seller. Aged less than two years
in new Minnesota white oak barrels, it has a beautiful light
amber hue and a delicious, almost fruity taste, with spice and
a distinctive white-pepper finish. It is delicious mixed into
cocktails like a Manhattan or a Horse’s Neck, or enjoyed neat. We
also offer a Cask Proof version at 116 proof, which is heavenly
and dark as maple syrup!
Watershed Gin is our rye-based gin, a modern style gin which is
built upon that sweet rye base, with a strong juniper nose, and
the flavors of mulling spice (anise, coriander, cinnamon), and a
crisp anise finish. Delicious in negronis, G&T’s, and martinis.
We also do brandy from pear, peaches, grapes, and apples. These
are limited release seasonal brandies usually only available at
the distillery or nearby liquor stores.
aSm: where do you get the ingredients for your products, and what makes them the right choice for you?
SH: All of our fruit is local, hyper-local, as we have a rich set of
farms in the areas producing lovely fruit (mostly grapes). We get
most of our rye from the mid-west, which is because it is organic.
We are trying to get an organic supplier of rye on the east coast,
but have not yet found one.
aSm: what resources, groups, or individuals have you found to be the most helpful during your distilling career?
SH: Having a chemical engineer for a wife, and one who is willing
“i cannot tell you how many people i meet who like the romanticism of the job, but don’t realize how much time they will spend shoveling, scraping, cleaning, buffing, and sweating over steaming hot tanks and stills.”
www.ArtisAnspiritmAg.com 29
to work 12 hours a day, six days a week, cannot be overstated.
She is an angel among men.
Apart from her, we are grateful to the many individuals who are
willing to put their money where their mouth is and “shop local!”
They keep us going!
aSm: what aspect of your business sets you apart from the pack?
SH: We are one of a very few organic whiskeys in the nation, and
I think that is pretty special.
aSm: how important is it for you to reach out to your consumers and build a dialog with them?
SH: Absolutely critical. We are constantly
trying to build demand from the ground up, a
“grassroots” distillery, as it were. Every event,
we try to get to meet, chat, and become friends
with people who enjoy our spirits. We do a
number of events every week with just this goal
in mind.
aSm: how has your community reacted to your business?
SH: We have been warmly embraced, I am glad
to say! We have lots of loyal fans in Loudoun
County and reaching into DC and Maryland.
Without our fans/customers, our business
would be nothing, so I cannot say enough how
wonderful they are and how important they are
to our business!
aSm: tell us about some of your goals for the future.
SH: Our next plan is to finish the construction
of our new facility and move our operations
over to the new building on Main Street in
Purcellville. This will allow us to simultaneously
expand our production by a factor of four, but
also to have a larger tasting room for tours and
tastings. From there, we would like to “fill in
the gaps” on the east coast with states where
our products are not currently sold.
aSm: what advice can you provide for other new craft distilleries entering the industry?
SH: Be ready to work HARD. Being a distiller
is a very difficult, blue collar job. I cannot tell
you how many people I meet who like the romanticism of the
job, but don’t realize how much time they will spend shoveling,
scraping, cleaning, buffing, and sweating over steaming hot tanks
and stills. It is back-breaking work, but if you truly love it, the
rewards are great! I don’t mean financially, but in the satisfaction
of producing a fine whiskey that is enjoyed by many! That is what
I love most, the joy of seeing a customer sip my whiskey.
Catoctin Creek Distilling Company is located Purcellville, VA. For more info visit www.catoctincreekdistilling.com or call (540) 751-8404.
Bruni Glass Packaging 02
with nearly a century and a half under the distillery’s belt,
Jack Daniel’s knows a thing or two about maintaining
a successful business in a constantly changing market: the
company has survived multiple wars and a prohibition, only to
emerge as a global brand with the number one selling whiskey
in the world today. The distillery’s secret? A simple philosophy
that many craft distillers can appreciate; in the founder’s own
words, “Every day we make it, we make it the best we can.”
be true to the eSSenCe of your brandJeff Arnett is the seventh in an esteemed line of Jack Daniel’s
master distillers starting with Jack himself. It’s Arnett’s job to
make sure each bottle of whiskey is up to Jack Daniel’s standards.
The whiskey’s authenticity is key: “Jack Daniel’s whiskey is all
natural. Everything inside that bottle has come from water,
grains, barrel, and charcoal mellowing.” The whiskey is distilled
using mineral-rich, iron-free
water from a cave spring on
the distillery property, and
matures in white oak barrels
built, toasted and charred by
Jack Daniel’s for the optimal
flavor and color.
be true to your whiSkey and itS drinkerSAccording to Arnett, Jack
Daniel’s has to “win fans
and friends one person at a
time.” When artisanal distillers go to him for advice, he tells
them, “Be as open and honest as you can as you approach your
whiskey and you’ll win more and more support over the years.” It
means using natural materials and the proper methods to create
the real liquor experience. It means offering tours to give your
customers a glimpse into the whiskey and how it’s made.
ChooSe a bottLe aS diStinguiShed aS what’S inSideThe packaging does more than protect its valuable contents. Jack
Daniel’s uses its iconic glass bottles to distinguish itself. From
the Gentleman Jack flask to the decanter-style Single Barrel
bottle, each whiskey brand has individually stylized packaging
that fits into the Jack Daniel’s brand family. Jack Daniel’s is best
known for its square-shouldered Black Label Old No. 7 bottle,
“the big guy”What can craft distillers learn from Jack Daniel’s?
“THe big guY”Editor’s Note: In an industry characterized by small batch distilling it can be easy to fall into the habit of seeing the world as “big vs. small” and “us vs. them.” So it will come as no surprise that when O-I asked us about doing a spotlight article on the glass packaging they provide Jack Daniel ’s, we were hesitant. How can you possibly get any further from small batch craft distilling than to talk about a brand like Jack Daniel ’s? But then it hit us, JD wasn’t always big. Very few companies start out massive, they have to grow. So we agreed to find out what Jack Daniel ’s had to say, and see what we could learn along the way.
W R i T T e N B Y k A T i e P Y L e P H O T O g R A P H Y B Y D V L P u B L i C R e L A T i O N S & A D V e R T i S i N g
www.ArtisAnspiritmAg.com 31
with nearly a century and a half under the distillery’s belt,
Jack Daniel’s knows a thing or two about maintaining
a successful business in a constantly changing market: the
company has survived multiple wars and a prohibition, only to
emerge as a global brand with the number one selling whiskey
in the world today. The distillery’s secret? A simple philosophy
that many craft distillers can appreciate; in the founder’s own
words, “Every day we make it, we make it the best we can.”
be true to the eSSenCe of your brandJeff Arnett is the seventh in an esteemed line of Jack Daniel’s
master distillers starting with Jack himself. It’s Arnett’s job to
make sure each bottle of whiskey is up to Jack Daniel’s standards.
The whiskey’s authenticity is key: “Jack Daniel’s whiskey is all
natural. Everything inside that bottle has come from water,
grains, barrel, and charcoal mellowing.” The whiskey is distilled
using mineral-rich, iron-free
water from a cave spring on
the distillery property, and
matures in white oak barrels
built, toasted and charred by
Jack Daniel’s for the optimal
flavor and color.
be true to your whiSkey and itS drinkerSAccording to Arnett, Jack
Daniel’s has to “win fans
and friends one person at a
time.” When artisanal distillers go to him for advice, he tells
them, “Be as open and honest as you can as you approach your
whiskey and you’ll win more and more support over the years.” It
means using natural materials and the proper methods to create
the real liquor experience. It means offering tours to give your
customers a glimpse into the whiskey and how it’s made.
ChooSe a bottLe aS diStinguiShed aS what’S inSideThe packaging does more than protect its valuable contents. Jack
Daniel’s uses its iconic glass bottles to distinguish itself. From
the Gentleman Jack flask to the decanter-style Single Barrel
bottle, each whiskey brand has individually stylized packaging
that fits into the Jack Daniel’s brand family. Jack Daniel’s is best
known for its square-shouldered Black Label Old No. 7 bottle,
selected by Jack himself. At the time, a bottle this shape was
practically unheard of. Today, Arnett still considers the bottle an
important player in the brand’s recognition: “We could take the
label off the bottle, and people would still look at it and know
that is a Jack Daniel’s bottle –– so it is definitely part of our
identity.” Jack Daniel’s also chooses glass bottles for a practical
purpose. While other materials may leach chemicals and impart
their taste onto the whiskey, the nonporous, non-reactive glass
bottle doesn’t add or subtract flavor, so the whiskey tastes the
way it’s supposed to: all barrel, no bottle.
never Stop improvingTo Arnett, living up to the legacy of the brand means never
ceasing to improve it. There are certain things that will never
change about the Jack Daniel’s process: the natural ingredients,
the local spring water, the maturation process in toasted and
charred hand-smoked white
oak barrels. But Arnett
admits, “If we can make
something better quality,
we’ll do that. One of the most
evolving parts of the whiskey
is the bottle itself. People
think we don’t change the
bottle much, but we’ve
subtly changed the Black
Label bottle about every 10
years,” says Arnett. “It’s
an old brand, but we don’t
want it to look dated.” Jack
Daniel’s works with the glass company O-I to make the proper
nips, tucks and embellishments to keep the bottle current while
maintaining the heritage of the bottles that came before it. “If
there are technologies available today that Mr. Jack didn’t get a
chance to enjoy, we’ll still look at and apply them as long as we
can do so and still maintain the character and integrity of our
whiskey. I think he would approve.”
One thing that hasn’t changed: no matter the shape, glass is
the right choice for delivering the taste of Lynchburg, Tennessee
around the world. “What we’ve learned over 147 years,” says
Arnett, “is there’s no better container for preserving the quality
and integrity of a whiskey.”
Jeff Arnett is proud to be one of the new voices of O-I’s Glass Is Life™ campaign. Join the global movement by visiting www.glassislife.com; follow the conversations on Facebook and #glassislife on Twitter.
“the big guy”What can craft distillers learn from Jack Daniel’s?
32 www.ArtisAnspiritmAg.com
artisan Distillers do not choose their craft for the purpose
of making the government happy that the excise taxes are
paid and the product labels are in compliance with the rules.
However, those chores are important in the scope of duties that
a distiller acquires when engaging in business as a regulated
beverage spirits producer. Before the first still run, there are a
number of steps to take involving compliance with the extensive
and challenging Federal rules governing distillers. Let’s first look
at who and what we are dealing with.
The agency charged with handling the permit and tax rules for
distillers is the Treasury Department’s Alcohol & Tobacco Tax &
Trade Bureau, commonly known as TTB. Formerly a component
of the Bureau of Alcohol, Tobacco & Firearms, the TTB was
established in 2003 to continue the mission of enforcing the
permit, product and marketing rules of the Federal Alcohol
Administration Act (FAA Act) as well as the registration, bonding,
operational and excise taxation rules in Chapter 51 of the
Internal Revenue Code (IRC). A distiller is regulated by both of
these laws, which are implemented through Federal regulations
found in Title 27, Code of Federal Regulations (CFR). Beginning
distillers should first look at rules in Parts 1, 5, 19, 29, 30 and
31.
The first item on the compliance agenda of the new distiller
is to create and submit the Federal application for an FAA Act
Permit and to register the Distilled Spirits Plant (DSP). Let’s
look at the five most common issues that confront and can delay
the distiller when putting together their permit application and
registration:
eStabLiSh premiSeS.Whether owned or leased, the distillery has to be secured, and
meet state and local requirements for the type of operations
planned. Our focus is on the Federal rules, which call for the
plant to be secure and located in commercial premises; the law
does not allow for any distillery to be located in a residence,
nor in a building containing a residence. Documentation of the
premises includes a copy of the lease or evidence of deed to
the property. The legal description is required, along with a
point-to-point (feet/inches by direction) description of the area
covered by the distillery bond. TTB requires a diagram of the
premises; nothing too fancy, just a simple drawing of the plant
layout, with dimensions, doors and windows. Use colored lines
to outline the bonded and “other” premises. The diagram has
to have the name and address of the applicant, and compass
direction indicated (an arrow with “N” depicting North will
suffice). This “Bonded Premises” must be secured to ensure no
one has unauthorized access to spirits held under the Federal
bond – see Get Bonded below. Under the Federal rules, if the
DSP has a retail or tasting room, that area cannot be on the
bonded premises, but may be next to it. Each still, tank and
other major piece of equipment for containing or handling spirits
is to be listed: serial number, capacity and use.
get bonded.TTB Form 5110.56 Distilled Spirits Bond must be executed
perfectly, and the operations coverage must be sufficient for
the tax value of all spirits on hand at the distillery at any one
time, plus bulk spirits in transit to the DSP from another DSP.
The minimum Bond for a distiller who will be making, storing
and bottling products is $15,000, plus additional withdrawal
coverage for deferral of taxes on the products withdrawn from the
DSP for sale or use as tasting samples. This amount covers about
1,100 proof gallons, or about 1,375 gallons at 80 proof/40%
alcohol. Preparation and submission of that “perfect” bond to
TTB is a topic worthy of its own article!
doCument your SourCe of fundS.This can vary — if the money invested comes from personal
funds, such as a loan against a retirement account, a commercial
loan, or withdrawals of savings the source would be documented
(i.e. statement from investment account showing withdrawals,
matched to deposits in the DSP business account) and images
of that documentation submitted with the DSP application. The
government does this to ensure that the ownership and interest
in the business is clear and correctly presented.
Let’S get StartedSkip the 5 most common speedbumps on the road to legal compliance
Let’S get Started
www.ArtisAnspiritmAg.com 33
Submit organizationaL doCumentS.This would be a copy of the company articles of incorporation
or Limited Liability Company (LLC) organization, corporate by-
laws or LLC operating agreement, and unless the authority to act
for the company is spelled out specifically in the documentation,
a resolution of the board or members granting signature
authority (by title) may be needed. A listing of the company
officers, directors and persons owning 10% or more interest
in the company is required, and if a corporation, the number
of shares authorized and outstanding and the number held by
each of these persons is required. For an LLC, a list of members
and persons having 10% or more interest is required. If an LLC
member or a major stockholder is another business entity, the
articles for that entity are required to document its existence.
TTB can ask for more information regarding ownership entities if
they choose to.
doCument perSonneL baCkground.For each of the persons noted above, complete a TTB Form
5000.9 Personnel Questionnaire. The form should be complete
and accurate, including the references, residences and
employment history. If a person involved was previously employed
in an alcohol business that fact would need to be reported on that
form. DSP applicants do not get the luxury of submitting a “short
form” background – be sure these are complete. If an owning
LLC member holding 10% or more interest is another LLC, the
members of that firm must also submit personnel backgrounds.
It is best, if unclear what to do, to contact TTB directly with
your questions. The customer service group in the TTB National
Revenue Center in Cincinnati will be pleased to assist; their
contact information is on the TTB website at www.ttb.gov.
Success in addressing these five areas will provide the distiller
applicant with a strong foundation for getting their approval as
quickly as possible. There are a myriad of details underlying each
requirement, and no guarantees of speedy processing. However,
it is my experience that the complete and clear application gets
prompt attention because it offers the government reviewer an
approvable submission that involves minimal follow-up. If your
application has numerous shortcomings, it will get set aside to
await your efforts to make corrections and enhancements to
complete that reviewer’s checklist. To get on the fast track and
stay there, be accurate, be complete and respond quickly to TTB
questions. Oh, and be sure to complete your application using
TTB’s Permits Online – once you get used to how it functions
it will save time as future changes require the permit file to be
updated.
Jim McCoy is Managing Consultant for J. McCoy Alcohol & Tobacco Compliance Consultants LLC in Cincinnati, OH. Jim served over 32 years with ATF and TTB, establishing his consulting firm in 2010 to assist alcohol and tobacco businesses in their efforts to meet Federal regulatory and tax requirements. For more information visit www.jmccoyconsultants.com or email [email protected]
SkiP THe 5 MOST COMMON SPeeDBuMPS ON THe ROAD TO LegAL COMPLiANCewritten by Jim mCCoy
SkiP THe 5 MOST COMMON SPeeDBuMPS ON THe ROAD TO LegAL COMPLiANCewritten by Jim mCCoy
Let’S get Started SkiP THe 5 MOST COMMON SPeeDBuMPS ON THe ROAD TO LegAL COMPLiANCewritten by Jim mCCoy
Imperial-Packaging Corporation
34 www.ArtisAnspiritmAg.com
?craft distilling is one of those industries that can be over-
romanticized and as a result is attracting a lot of new
players. And truly, craft distilling is romantic. However, the
reality remains that there are a lot of unknowns and risks which
are often not fully evaluated prior to embarking on a spirit
journey, mainly because new entrants just don’t know what they
don’t know!
Let’s establish some common ground:
� We share the same central focus; a passion and dedication
for the art and science of craft distillation.
� Each of us comes from our own walk of life with different
areas of expertise, knowledge, and wisdom.
� No one sets out to fail.
This may suggest success for all who endeavor, but that is not
always the case. Let’s be frank and ask ourselves: “Why do I
want to distill? Am I set up to succeed? Have I REALLY done my
due diligence before starting this journey, or am I just jumping
on the band wagon?”
We all start out confident, willed by our imagination and
creativity. Yet, no matter what your background, skill, or
expertise, you will make mistakes.
Future distillers BEWARE - this endeavor is not for: the faint of
heart, people who want to take short cuts, individuals that lack
patience, anyone not prepared to take risk or assume debt… or
those unwilling to give up a Sunday golf game!
I say this as a former Commercial Lender, International
Marketer, Culinary Chef, Strategic Management Consultant, and
Co-Founder of The Liberty Distillery in Vancouver, BC. I never
could have imagined years would pass, and still, our doors are
not open. This statement is not meant to dissuade. Rather it is
intended to challenge you to dig deeper, research further, and
then PLAN, PLAN, AND PLAN AGAIN.
So, you have your business plan in hand, zoning permits
complete, manufacturing application submitted and approval in
principle received. You’ve invested hundreds of hours in research
and your due diligence is complete. The stills, tanks, hoses and
bottling equipment are ordered, and smiling confidently, you sit
back to raise your feet up thinking ‘good as gold – what possibly
could go wrong?’
Let’s talk about some of those unforeseen “hidden” planning
issues that may not have been anticipated.
are you ready?The realities of opening a craft distillery
are you
ready by LiSa SimpSon
34 www.ArtisAnspiritmAg.com
www.ArtisAnspiritmAg.com 35
? As most know, each Municipality, Region, Province or State is
different. The Vancouver Building By-law defines craft distilling
as a “High-hazard industrial occupancy (Group F, Division 1)
meaning an industrial occupancy containing sufficient amounts
of high combustible and flammable or explosive materials
which, because of their inherent characteristics, constitutes a
special fire hazard.”
Building a distillery is akin to, and nothing short of, building a
nuclear power plant. Craft distilling is relatively new in the eyes
of the approving authorities so fire safety in existing buildings
and within the community at large is often taken extremely
seriously. Researching requirements specific to your jurisdiction
is paramount because one region may differ from its neighbor
and the Fire & Safety Department may have requirements
different from what is indicated for your building permit. In
addition, there will likely be environmental concerns with the
local, provincial/state, or federal authorities.
The importance of both communication and accountability
throughout the permit/construction process cannot be
overemphasized enough. Typically the information you need
to know is not conveniently located in one place. The truth is
hired consultants and trades (mechanical, electrical engineers,
architects, plumbers, electricians) do not know all the ins and
outs of each others’ area of expertise. Nor do they know every
detail of every city by-law or zoning requirement especially as it
pertains to the process of craft distillation.
Believe it or not, building a distillery is a bit like surgery.
There’s a diagnosis (approval to proceed), documents are
executed to operate (engineers/trades are hired), surgery
begins (construction), and then people react based on what is
found. The fact is you don’t know what the course of treatment
(construction) will be until you are well into the thick of things
and all the while the meter is running.
One way to avoid wasting valuable time and resources is to
coordinate a meeting with your architect, general contractor (if
you’re not doing this entirely yourself) and every city office you
will eventually receive approvals from well in advance of actual
construction.
To effectively do this, map out in detail the distillery floor plan
with specific equipment to be used including pumps and all
other electrical items. It is not enough to have a generic floor
plan showing placement of stills, tanks and pumps. What’s
required is detail, detail, detail. Know the specifics of your
equipment and what it does. Are they explosion proof and meet
local code requirements? What is the volume of waste/fluid
expected to be dumped down the municipal sewer? What will
the discharge temperature be? What chemicals will be used for
cleaning and in what volume?
Every question and response has a potential implication on what
additional requirements might be imposed. In short, don’t make
assumptions that any one person will have all the answers. Most
people are not trying to mislead you; sometimes they just don’t
know.
Questions to ponder – potential concerns to anticipate:
� Location, location, location… Do you design your distillery
lay-out and find the right building, or secure the perfect
location and build your distillery around it?
� What are the limitations of the distillery space?
� When was it built, and does it meet current standards/
by-laws?
� What environmental concerns must be complied with?
� Is there a requirement for a trade waste interceptor?
� How will waste be disposed of?
� What are the Fire Safety Code requirements?
� Is the building attached to another?
� Does the building require 2-hour fire rating?
� Are sprinklers present?
� Do the fire pulls meet code?
� What are the ventilation and sensor requirements?
� Does the Fire Department require automated shut down
permitS & zoning
ConStruCtion
www.ArtisAnspiritmAg.com 35
36 www.ArtisAnspiritmAg.com
parting finaL wordS...
with direct routing to the local fire department in the
event of equipment failure or alcohol vapor leakage?
� Do pumps, overhead lights, exit signs, and other electrical
equipment have to be explosion proof?
� What is the source for generating steam – electrical or
gas?
� Does the building have sufficient electricity to
support daily operations for an electric boiler without
compromising still operation?
� Is there sufficient floor space to accommodate a gas-
fueled boiler and a service room?
On a final note, keep tabs on local and federal legislation
changes. They can have a huge impact on your new or
established operation. As an example, the Provincial
Government of British Columbia recently amended its Liquor
Legislation and definition of Craft Distilling. The revised
legislation offers significant benefit to those distilleries who
use 100% BC product, ferment, and distill on site. Being
aware of pending legislation change may directly impact the
business plan and subsequently the distillery floor plan. It now
might have to accommodate a mash tun, auger, fermenters,
and possibly a separate room to mill your grain!
So, completion of construction is rapidly approaching. The
excitement is mounting and everyone is asking “When’s the
opening? Can I be the official taster?”
For that to be a reality your spirits have to be in a bottle...
with a label you are proud of that has been approved by the
appropriate authority... with a closure of your choosing that
is complimentary to the bottle and brand. And yes, one more
thing, don’t forget to throw a memorable ‘official opening party,’
with communication between friends, family, the community,
and the media.
For many people, the budget has now been blown. That
means the distillery website, blog, media package, and set-
up a Facebook and Twitter account will have to be done by...?
Believe it or not, social media just became your new best
friend. And if by chance you were not an ‘early adopter,’ then
now is the time to learn what an important role social media
can have.
If along the way you become disheartened and feel like
throwing in the towel – DON’T! Take stock. You are part of
a community of tenacious, like-minded individuals filled with
knowledge, passion, and camaraderie.
This is a budding industry. Remember to help others on their
journey and ask for support on yours. After all, that’s what
makes us unique. It’s what makes and defines us as Craft
Distillers.
Lisa Simpson is founder of The Liberty Distillery in Vancouver, BC. For more information visit www.thelibertydistillery.com or call (604) 558-1998.
For more than 30 years Phoenix has designed and introduced new packaging concepts to the beverage industry. We work with factories around the world using a variety of materials to produce distinctive packaging.
847 McCaffrey,Montreal, Quebec, Canada H4T 1N3
Toll Free: 1-800-661-6481 Telephone: (514) 487-6660www.phoenixpackaging.com
Attila M. Joo Manager of Sales and Business DevelopmentMobile: 514-234-1503 Email: [email protected]
don’t forget...
36 www.ArtisAnspiritmAg.com
Phoenix Packaging
www.ArtisAnspiritmAg.com 37
parting finaL wordS...
no matter what, you only get one first impression. In
those first few fleeting moments of meeting someone,
you’ve got a tiny window to show them what you’re all about,
lest they formulate an opinion of their own making. The same
can be said of a bottle of spirits.
When a consumer goes to their local
liquor store or watering hole with the
hopes of trying something new and
exciting, they’re presented with an
overwhelming wall of options, each
vying for their attention. To stand
out, you’re going to need a label that
conveys your brand’s personality, the
true essence of what your distillery is
all about. Your label is your brand’s
handshake, the small smile, even the prolonged locking of eyes
across a crowded room.
With so much importance being placed on such a seemingly
simple item, we turned to LabelOne Connect, a premier label
printer from Beaverton, OR. How LabelOne came about is an
inspiring story in and of itself - it began as an offshoot of a
large label maker called Dana Labels in Hawaii. Enter Wilfredo
Rabanal, a Filipino immigrant whose first job was working for
Dana as a press operator in
1978. He quickly became one of
Dana’s top printers and when the
company decided to expand to
the mainland (specifically Gaston,
OR), Wilfredo was selected as the
man for the job. Success has its
ebbs and flows, however, and
after a year of slow growth it was
decided to close the Gaston plant.
But Wilfredo wouldn’t hear of it.
He struck a deal with Dana’s owners where he’d be given 50%
ownership of the Gaston plant in exchange for moving his family
from Hawaii to run the plant full-time. In November of 1984
Wilfredo moved with his wife, Ardina, and one-year-old daughter
firSt impreSSionSLabelOne
firSt impreSSionSw i t h L a b e l O n e
written by rockwell rutter photos provided by labelone
38 www.ArtisAnspiritmAg.com
to Oregon to save a struggling company.
His gamble would soon pay off.
Since then, Wilfredo has taken
the business through massive growth
(including a 2001 name change to the
current LabelOne), with customers across
a wide variety of industries (not the
least of which is beer, wine and spirits).
They’ve gone from a single space in an
industrial complex to an enormous
14,000 sq. ft. warehouse in order
to keep up with demand. In addition to
just printing labels, they’ve also launched
their own line of labeling systems.
According to Wilfredo, “What sets us
apart is our desire to make a high-quality
product that stands up to the rigors of packaging.
We don’t want to be a service company and it is
for this reason that we build our machines out of
high-grade materials and parts.” LabelOne even
goes so far as to provide each customer
with specialized how-to videos they can
access online.
Besides the commitment to
high quality labels and equipment,
Wilfredo credits the people on his staff
as being the secret to his success. Most of
his employees
at LabelOne have
been with the
company for over
15 years, and many
of them bringing years
of individual experience
in all facets of the printing industry. There are even a few
employees that have experience in the wine and spirits trade,
which allows Wilfredo to continue to grow that part of their
customer base. For example, LabelOne will work with its
customers with getting their labels approved by
the TTB. As many of our readers know, this is an
arduous process, beset on all sides by delays
and complications. Since this is something
that Wilfredo and his team deal with on
a daily basis, they are happy to share
their knowledge and experience to make
the approval process go as smoothly as
possible. It’s still the distillers’ responsibility
to manage their own label approval, but
LabelOne is often able to catch mistakes and
errors before they’re sent to the Feds, resulting in a
major time savings.
Helping out the craft distilling industry is
always on Wilfredo’s mind. At LabelOne,
they’re constantly looking at new
labeling materials and technology
in order to find better and more
efficient ways of doing business,
and he sees a parallel in distilling.
Wilfredo had this to say: “They [craft
distillers] are revamping the old ways of
distilling. Craft distillers are taking old
methodology and incorporating modern chemistry to
innovate.” It’s an observation like this that reminds us that if we
keep our hearts with the past and our minds on the future, we’ll
continue to build a vibrant and successful industry.
LabelOne is located in Beaverton, OR. For more information visit www.labeloneconnect.com or call (800) 255-1492.
Paulson Supply
www.ArtisAnspiritmAg.com 39
a rguably, there is no harder way to start a business than to first
be required to create the law that will govern your operation.
To launch Painted Stave Distilling in Delaware, that is exactly
what we had to do. Opening in Delaware was an easy choice for
us. The state has a rich history of brewing and distilling dating
back to the earliest settlers in our nation, and is abundant with
high quality locally grown raw materials well suited for crafting
spirits. Delaware also maintains a growing interest in locally
crafted, handmade products, including a strong craft beer
industry and a growing farm winery industry.
Moreover, since the state is geographically small gaining
access to the “movers and shakers” of Delaware (i.e., the
Governor, Alohol Beverage Commission (ABC) Commissioner,
Legislature, business leaders) is reasonable. Opportunities to
chat with elected and appointed public officials at formal and
informal events are abundant. On top of that, we believed that the
benefits of being the first stand-alone craft distillery in the state
would be huge relative to the challenges of making that happen.
be informed
Without question our ability to succeed
was greatly facilitated by two artisan
businesses that came before us. Nassau
Valley Vineyards, and Dogfish Head Craft
Brewed Ales were largely responsible for
the laws that govern farm wineries and craft
breweries, and their experience afforded us clear
examples of what was possible. After reviewing the
craft distillery laws from a number of neighboring
states and brushing up on the current state laws
with the help of a government relations person, we
began a conversation with our ABC Commissioner
to discuss our needs and assess the state’s
openness to updating our laws.
An important piece of advice we received early
on was to never ask legislators to pass a bill
that included anything the craft wine and beer
businesses did not already have. Legislators would
be more comfortable supporting a bill that gave
the same opportunities to a new business. Taking
this approach greatly simplified the drafting of our
bill, as we essentially had templates to pull from.
We put together a rough draft of the bill and had
another conversation with our ABC commissioner
so we could lay out our specific needs and get
some feedback before we started to engage
legislators. All of this was important because the last thing that
we wanted to do was surprise the state with a bill that they knew
nothing about.
buiLd Support
With a solid rough draft of our bill in hand,
we learned that another small business
was interested in similar legislation. We
were fortunate that this highly regarded
and successful business was the same
trailblazer that helped create the craft brewing laws in our state.
It was a no-brainer to merge our needs into one bill and work
together to get it passed. Subsequent meetings with our ABC
Commissioner were critical for getting the language of the bill
right, as well as its placement/fit in the code.
Once drafted, it was time to find sponsors who would champion
the legislation. We started with local legislators, those that
represent districts in which our distillery is located. Certainly,
our efforts could not move forward without them. These folks
have the greatest interest in seeing us succeed and they became
the primary sponsors of our bill. They also facilitated subsequent
meetings with other legislators.
The next step was to seek additional sponsors from leadership
in both houses. This meant setting up short (three to five minute)
meetings with as many legislators as possible. The goal was to
be the ChangeLessons learned on the road to legalization in Delaware
be t h eChange.L e S S O N S L e A R N e D O N T H e R O A D T O L e g A L i z A T i O N i N D e L A W A R e
b y R o n g o m e s & M i k e R a s m u s s e n
40 www.ArtisAnspiritmAg.com
make the case for why this bill was important for their district
and our state in the fastest and most direct way possible. That
meant creating a message, staying on it, and not being afraid to
ask if you have their support. Keep a tally! In our case, we talked
about how craft distilleries are creating jobs and supporting local
communities all over the country, and legislators were excited to
support the growth of a new business.
be there
Working a bill is a great civics lesson.
Remember the “How a Bill Becomes a
Law” song from Schoolhouse Rock? That
is pretty much how it worked in Delaware,
and it was our job to shepherd it through
the process.
We learned it was critical to be in the room/chamber and
available for questions should they arise, but to not open a can
of worms by opening our mouths if we do not have to. If you
have done your homework and built support before the bill was
introduced you will not be surprised by the outcome even if some
of the questions or comments are a bit out of left field.
We followed our bill the whole way, from attending the Senate
committee meeting when it was introduced so we could put a
face to the bill and answer questions, to sitting in the Senate
chamber when it was introduced and voted on, and over to the
House for the same treatment. In the end, our legislation was
passed by the House and Senate with overwhelming support,
and was signed by the Governor a few weeks later.
Being required to pass legislation to start a business is neither
an easy task nor a path recommended. However, if starting or
growing your business depends on it, know you are signing up
for an interesting ride and be prepared to devote a great deal of
time and resources to the effort. We knew that in advance, but
by being informed, building support, and being there to work
the bill we were able to craft and pass a very supportive piece of
legislation in a few short months. We were fortunate to have some
very good advice early in our efforts, and Lady Luck working for
us along the way. However, more than anything, we were able to
make a strong case for our business, and were able to convince
others that our needs were also in their interest. After all, public
servants are people too, and many of them enjoy a good drink
now and again!
Ron Gomes and Mike Rasmussen are owners of Painted Stave Distilling in Smyrna, DE. For more information visit www.paintedstave.com or call (302) 300-0587.
1605 Commerce Ave SPark Rapids, MN 56470
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www.ArtisAnspiritmAg.com 41
when you’re in a gold rush, don’t dig for
gold. Sell shovels. With craft distilling
on the rise around the world, a market niche was
created that demanded a new host of supporting
services. One of these is the need for high-quality
and affordable glass packaging, a need that
Loggerhead Deco has successfully filled for years.
In 2010 a few talented people with industrial
printing experience came together and founded
Loggerhead, one of the industry’s leading producers
of glass bottles. Loggerhead has two focused goals:
1) bring high-end decorating solutions to the small batch
brands (micro-distilleries, regional wineries, craft spirits, and
specialty glass market); 2) eco-friendly glass bottle decorating
solutions. With the ecological trend
overtaking the industry, this “label-
less” production has put them at
a great advantage, and rather than
competing for large international
brands, their focus is on the craft
distiller and their unique needs.
By bringing big-brand bottle and
decorating techniques to the small brands, a craft distiller is
able to confidently show their products right alongside any
bottle out there. Even with all their success,
Loggerhead remains small enough to really focus
their attention on their customers. Staying small
has its advantages, as well. Steve Gilbertson, CEO
says, “We have a decorating team that is focused
on one industry – craft spirits. They only know one
quality level. We only have people on the team
who have an attention to detail.”
The process typically starts out with several
conversations between Loggerhead and the
distiller. Rather than jumping right into the design, the
Loggerhead team strives to create a real relationship with the
customer. “This business is personal, and we need to keep it
personal,” says Gilbertson. By discovering the personal reasons
why the distiller started their company
and determining what kind of vision for
the future they have, Loggerhead can
eventually create a design that speaks to
the actual essence of the brand. Once the
design is finalized, then comes the pivotal
moment of submitting it to the TTB for
approval. As many of our readers can
attest this process is not always easy and can be fraught with
complications. As part of Loggerhead’s commitment to customer
SmaLL Company. big viSion.Loggerhead Deco
s m a l l c o m p a n y .
big viSion.l o g g e r h e a D D e C o
w r i t t e n b y r o C K w e l l r u t t e r
“We only have people on the team who have an attention to detail.”
42 www.ArtisAnspiritmAg.com
service, they have your back every step of the way. Says
Gilbertson, “There are occasionally several revisions
needed for the TTB approval. When the approval happens
(it always happens), then it is a track meet to get the
product decorated and out the door. Response time to
customers is critical and keeping the process moving is
extremely important.”
Even after the TTB signs off on a label, Loggerhead
still works towards its customers’ success. By virtue
of being a leading bottle supplier in the industry,
they’ve built up innumerable connections with
other vendors and aren’t afraid to share that
knowledge. They’re skilled at matching a distillery
with other vendors that share their same vision.
One thing that sets Loggerhead apart is their
commitment to green business practices in all
aspects of their company. Glass is a unique material
because it is theoretically infinitely recyclable; a
used bottle can be melted down and remade into
other applications with very little carbon emissions. The
problem is, once a bottle is printed on using a type of ink that
contains harmful chemicals or adhesives, it can no longer be
recycled and would be headed for a landfill. Loggerhead
uses only materials that can be safely stripped during the
recycle process. Says Gilbertson, “We all need to reduce
our carbon footprint. Why not do it with the bottle?”
By maintaining their focus on providing high-quality,
sustainable glass to the craft distilling industry, the word
about Loggerhead has gotten out. With a team of just 14,
they’re now filling orders from as far away as Japan
and Australia. Even so, their commitment to service
above all else never falters. When asked for a final
piece of advice for craft distillers about to start
bottling, Gilbertson had this to say: “Craft distillers
must think about the bottle decorating very early
in the planning process. Printing is normally the
last thing considered in most industries and so is
the budget for decorating. When you get the end
user to grab your bottle from the shelf, rarely do
they put it back. Remember the story on the bottle
is very important.”
Loggerhead Deco in located Batavia, IL. For more information visit www.loggerheaddeco.com or call (630) 206-374.
Stock InventoryCustom DesignDecoratingCapsulesClosuresCorks
eMail: [email protected]
Call Jimmy at 502-326-8451 or Chad at 502-326-8452
For more than 25 years, Saxco International has beenhelping distillers create the packaging identity that is theirbrand. A turn-key supplier of packaging needs, we offer acomprehensive range of products tailored to craft distillers,that includes bottles, corks, closures, and capsules.
Your Clear Choice forPremium PackagingSolutions
Saxco AS 2:Layout 1 5/7/13 5:26 PM Page 1
Thousand Oaks Barrel Co.
Saxco International
www.ArtisAnspiritmAg.com 43
there is a technological revolution going on in the craft
distilling industry, and the market leaders of tomorrow will
be the ones who are paying attention today. One company that is
spearheading this kind of technological change is AGRA Trading,
a large wholesaler of agricultural byproducts started in 1991 in
Chico, CA. Every day, the folks at AGRA Trading are forced to
think outside the box; in fact, their industry demands it.
Their business model is founded on taking something wasteful
and finding a profitable use for it. After 21 years of successful
operation, they joined up last year with Rich Dobbins, a
professional from a company called Tri-Seal USA with years of
experience in the agricultural coating field. It was this
partnership that led them to explore the craft distilling
game.
Tri-Seal USA had developed a new product
called, “Barrel-Seal,” a completely
non-toxic, zero-VOC, food
grade barrel coating
that is
changing the way distillers are thinking about spirit storage.
There are other competitors out there with various kinds of barrel
sealants, but Tri-Seal’s is the only one that can boast this kind
of environmental-friendliness. Perhaps the greatest difference
is that while Barrel-Seal stops the good stuff from getting out
(liquid evaporation), it uses a semi-permeable layer that still
allows the spirit to breathe normally.
The potential benefits of a barrel sealant go beyond liquid loss
and reducing topping amounts. Distillers and wine producers
often have to contend with borers, mold, and wood surface dry-out.
A barrel sealant can offer protection from many of these common
hazards while permitting normal breathing thereby
maintaining the desired flavor profile. Rich Dobbins
explains that he feels he has the opportunity to,
“really help entrepreneurs be successful
by helping to improve their
yield and revenue.”
taking baCk the angeL’S ShareAGRA Trading
a g r a t r a D i n g
taking baCkthe
angeL’S Sharewritten by rockwell rutter photo by amanda Joy Christensen
44 www.ArtisAnspiritmAg.com
It’s no secret that there is a strong relationship between spirits
and the type of container they are stored in. Rich tells us that,
“There is a desire to have traits similar to a good French or
European oak for wine is well known, as is the desire to have a
great American oak for spirits. If in coating either one, the desire
is to allow the controlled ‘breathing’ of the cask to occur, thus
tannin shock, sugar lines and char flow are improved.” The loss
of liquid still occurs, but it comes down to regulating the outflow
of moisture to concentrate the liquid for best results. As a result,
distillers have found that they can minimize variance in barrel to
barrel taste by controlling “barrel surface evaporation rate” with
a breathable Tricopolymer film, much like a thermostat controls
heating and cooling. According to the chemical “recipe” AGRA is
able increase or decrease the moisture pass-thru rate by adding
more or less polymer chain in the mixture. Rich explains it by
asking that we imagine spaghetti and sauce on a plate. “The
more noodle is added, the less ‘breathing’ ability through the
sauce, so to speak.”
Even with such a revolutionary product, AGRA Trading got
off to a rough start with craft distillers. Keep in mind, distilling
technology hasn’t changed much in the last few hundred years,
so a little pushback was expected. One of their biggest problems
was getting distillers to test Barrel-Seal on their beloved barrels,
but after seeing the results, business has been booming. In fact,
Barrel-Seal has now been applied to numerous other markets,
including bee-boxes for beekeeping, kennels, nut-boxes and
more.
That said, AGRA Trading still has a soft spot for craft distillers
and is constantly finding ways to improve its product. In fact,
they’re currently testing Barrel-Seal on flat-sawn oak and
preliminary test results are promising. Once it’s ready for market,
using this cheaper wood material in barrel construction would
drastically drive down the price of barrels, which means cost
savings for everyone.
At their core, AGRA Trading is all about providing tools for
entrepreneurial distillers to become more efficient and profitable.
In an industry where players are typically underfunded and
overworked, getting an extra 8% out of each barrel can mean the
difference between a successful company and closing the doors.
Innovations like Barrel-Seal allow distillers to continually perfect
their craft while embracing the inevitable change that evolving
technology provides.
AGRA Trading is located in Chico, CA. For more information visit www.agra-trading.com or call (855) 894-1782.
Tapi 03
Artisan Craft Distilling University
advertiSer index
The road to starting your own craft distillery isn’t all shiny copper and alcoholic beverages. find out if you are ready on page 34..
Photo by Lisa Simpson (The Liberty Distillery in Vancover, BC)
advertiSer index
barreLS
Black Swan Barrels 40
Thousand Oaks Barrel Co. 42
boiLerSRite Boiler 40
bottLe & gLaSS deCoratingLoggerhead Deco 21
bottLe manufaCturerS & SuppLierSBruni Glass Packaging 6 & 29
Owens-Illinois, Inc. 48
CorkS & CLoSureSPaulson Supply 38
Tapi USA 6, 21, & 44
deSign, branding & merChandiSingCF Napa Brand Design 2
Thoroughbred Brands 4
diStiLLerSNapa Valley Distillery 19
Rogue Spirits 6
diStiLLing equipmentArtisan Still Design 17
eduCationArtisan Craft Distilling University 45
LabeLSLabelOne Connect, Inc. 15
St. Louis Litho 6 & 9
ngS & buLk SpiritS SuppLierSPharmco-Aaper 6 & 21
paCkagingBrad-Pak Enterprises 47
Global Package/Estal Packaging 13
Imperial-Packaging Corporation 33
Phoenix Packaging 36
Saxco International 42
pubLiCationSThe Guide 5
artiSan Spirit sponsors
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“Glass is essential to ensure the unique characteristics of Jack Daniel’s. Jack’s guiding words were ‘Every day we make it, we’ll make it the best we can.’
That’s a big reason we bottle in glass.”– Jeff Arnett
Master Distiller, The Jack Daniel Distillery
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Owens-Illinois, Inc.