Last week, Kinnek was lucky enough to join hundreds of makers at the Craft Beverages Unlimited Midwest conference. Catering to craft brewers, winemakers and distillers, CBU Midwest featured a variety of workshops and vendors specializing in the small business sector.
During the conference, we attended an event called, “The Nuts and Bolts of Distillery Startups,” led by Karen Binder (pictured below), the co-owner and head distiller of Grand River Spirits in Carbondale, IL. Her workshop covered all the basics of founding a spirits brand, which we’ve distilled down as follows:
The TTB is Your Friend
Craft distillers often complain about the reams of Tobacco Tax and Trade Bureau rules and regulations to follow. However the TTB is on your side! Without fully operating distilleries, the Department doesn’t make money! That means there are incentives on both sides. It’s helpful to consider that local TTB agents don’t make the rules, they just enforce them. Speaking of which…
Follow the Rules
From building regulations to labeling restrictions, formulation disclosure and environmental mindfulness, read up on all you can, consult your TTB agent and reach out to fellow distillers! Making an innocent mistake is all well and good, but not if it costs your businesses a $50,000 fine (like Tito’s). Hopefully these rules become second nature when you…
Plan, Plan, Plan
Having an underdeveloped business plan can be one of the biggest downfalls for small business owners. It’s worth doing your homework before you spend money and make sure every detail is covered. From pricing out your product (don’t forget about distributor and retail margins) to identifying your audience, omitting even a small expenditure can set you back weeks, even months. Finally a business plan is a fluid document, which means you need to…
Be Flexible!
As a growing number of distillers join the craft scene, it’s constantly changing. A solid business plan will guide you on your journey to business growth but maintaining an open mind and flexible schedule will ensure success. From trademarking issues to regulation adjustments, not everything can be planned for. A rigid business plan can potentially become an even larger roadblock to success. At the end of the day, though…
Go with the Flow
Since 2008, the craft distilling industry has been growing at a rate not seen since the pre-Prohibition era. Liquor markets continue to expand, particularly in large cities across the country fueled by deregulation and support at a federal and local level. From a community perspective, the craft distilling community is one of the most close-knit and helpful ones out there.That is to say, for discerning palates (like the taste-test craft favorite from CBU shown in the photo above) and entrepreneurs, there’s never been a better time to launch a craft distillery!
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