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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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

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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

http://www.facebook.com/ArtisanSpiritMagazine

http://www.twitter.com/_ArtisanSpirit

http://www.tbbrands.com

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

http://www.pharmcoaaper.com

www.rogue.com

http://www.stllitho.com/artisan

http://www.tapiusa.com

http://www.bruniglass.com/

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

mailto:[email protected]


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

http://www.thehardwaredistillery.com


St. Louis Litho 02

http://www.stllitho.com/artisan


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


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.

http://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


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.


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


Global Package/Estal Packaging

http://www.estal.info


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


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.

http://www.labeloneconnect.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


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

http://www.artisanstilldesign.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



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.


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

http://www.napavalleydistillery.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


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

Cooperation

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


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


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.


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.



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


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.”


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

http://www.bruniglass.com/

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


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?


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


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

http://www.imperial-packaging.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



? 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



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...


Phoenix Packaging

http://www.phoenixpackaging.com


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


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

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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


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.

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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.”


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.

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Saxco AS 2:Layout 1 5/7/13 5:26 PM Page 1

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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


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


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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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