The Monthly Mash: August Update

The Monthly Mash

Volume 1.10

Member-Owned, Industry-Driven

ACSA Mission:

To elevate and advocate for the community of craft spirits producers.

From the Desk of Margie A.S. Lehrman, Executive Director

August brings thoughts of restful, restorative days at a mountain retreat, under an umbrella at the beach, or atop a tube on a freshwater lake. Others may enjoy kicking-back at a fellow distiller’s tasting room or simply making plans to leave the still before 8 pm.

ACSA reenergized in its own way, adding a few new initiatives to advance our industry.

Our first solo Legislative Fly-In was held at the end of July—hear what some participants thought of walking the Halls of Congress.

From the Golden Gate Bridge to Larimer Square, ACSA launched its Meet and Greet series in San Francisco and Denver. Learn what’s on the mind of your fellow distilling community.

If remaining busy is your preferred way to relax, it's not too late to do so with ACSA. Answer ACSA’s Call for Presentations to be considered to speak at ACSA’s upcoming convention and/or participate in this month’s webinar: Build a Better Brand Ambassador.

Or, start planning your trip to Pittsburgh in March 2018. We’ll give you some reasons why you should attend.

Finally, for those who prefer to simply sit with libation in hand, check out a delicious cocktail recipe below.

However you choose to relax and regroup, here’s to health, happiness, and good cheer during these waning days of August!

Cheers -

Margie A.S. Lehrman

Executive Director

We Know You Have Big Ideas:

Submit Your Presentation Topics!

We’ve extended the Call for Presentations deadline for the American Craft Spirits Association's 2018 Distillers Convention and Vendor Trade Show to August 31. ACSA seeks engaging, knowledgeable speakers to bring their marketing, financial, technical, and more insights. It will take place March 5th and 6th, 2018 at the Wyndham Grand Pittsburgh. Whether you have new safety techniques or want to share your expertise in international distribution, there is a place for you in Pittsburgh!

Click Here

Craft Spirits Classroom Webinar:

Quenching Your Thirst for Knowledge

Brand Ambassadors are more than just sales people; they represent your distillery. And ACSA Presenter, Robin Robinson will help you Build a Better Brand Ambassador. Robin Robinson is a private consultant to the American craft whiskey industry, where he helps small brands identify their unique narratives to penetrate and activate the marketplace and creates custom whiskey education for sales forces.

This webinar is focused on creating what Robin has deemed “the next generation brand ambassador:” a sales-oriented, account-driving individual. Full of brand and category knowledge, this dynamic individual delivers the brand pitch with insider confidence. But they are also sharply focused on where the brand is at all times and dedicated to driving adoption and volume.

When: Today, Wednesday, August 16th from 3:00-4:00 PM EDT

Level: All Levels

Where: Online Webinar - Your Craft Spirits Classroom

ACSA Members, email [email protected] for your discount code!

ACSA MEET AND GREET:

HELLO…WHAT SERVICES DO YOU VALUE AND HOW CAN WE DO BETTER?

Cable cars, sourdough bread, Lombardi Street – all reasons to visit San Francisco. And on August 3, Bar Agricole, a leading industry cocktail bar and restaurant, provided another reason to descend on the Golden City. ACSA hosted its first Meet and Greet to reacquaint old friends and meet potential new members, with more than a dozen turning out for the event. ACSA, represented by Pacific Region Board Member Dan Farber from Osocalis Distillery and its Executive Director, Margie A.S. Lehrman, asked all gathered what ACSA initiatives they most valued. At the top of everyone’s agenda was a reduction in the Federal Excise Tax (FET). Margie updated those present on the need to reach out to members of Congress – NOW – to educate legislators on the importance of the CBMTRA to small businesses, aka, craft distilleries (see below update on ACSA's Legislative Fly-In). [If you want to know whether your legislator is a cosponsor on the bill, please click here and here.] A big thank-you to the Northern California group, which assembled to share a cocktail and nibbles while strengthening the ACSA community.

Additional board members joined Dan and Margie on August 10 at another Meet and Greet to thank ACSA members and extend a warm welcome to Colorado Guild members in beautiful downtown Golden, at the Golden Moon Distillery. Stephen Gould, Founder and Owner of this distillery, graciously hosted the group. Pacific Board Member John Jeffery from Bently Heritage and Central/Mountain Board Members Courtney McKee from Headframe Spirits and P.T. Wood from Wood’s High Mountain Distillery, together with ACSA Education Coordinator Kirstin Webster, asked those gathered what ACSA could and should do better. A chorus echoed from this community of distillers: Reduce the FET. That night, Coors wasn’t the only thing brewing in Golden! New ideas for ACSA initiatives emerged from discussions on spirits sales to product and distillery safety.

Look for upcoming Meet and Greets in your local communities as ACSA further develops this outreach program.

Mark Your Calendars!

REGISTRATION OPENS SOON for our 2017/2018 Judging of Craft Spirits Event, which will be held November 7th & 8th. This judging event is special, not just because of the talented judges involved or the amount of effort and care that goes into the scoring and product notes you receive. This event stands out because it’s the only craft judging competition assembled, organized, and overseen by you, the distilling community. We know you demand integrity, transparency, and attention to detail, and that’s exactly what you get.

To see last year's medalists, click here.

This year brings a few changes to ACSA's Spirits Competition. For the first time, we are accepting international spirits submissions as well as moving the competition venue. Our judges will join us in Washington, D.C. at District Distilling Co., the host for this spirits evaluation. Also, we'll be introducing a handful of new judges to our panel this year.

A Q&A with Your ACSA Team

We asked three members of the ACSA family to answer a few questions about their experience at the ACSA Legislative Fly-In last month, what the FET reduction would mean to their business, and the growth of the craft spirits community. Read below to find responses from Pia Carusone & Rachel Gardner, Co-founders of Republic Restoratives (DC); Randall Buxbaum, National Sales Manager of Whiskey Resources (MD); and Carlo Luri, Director of Government Affairs at Bently Heritage (NV).

How was your experience last month in Washington, D.C. for ACSA’s Legislative Fly-In?

Pia Carusone & Rachel Gardner: “Great! We were thrilled to be able to participate.”

Randall Buxbaum: “It was enlightening. I’ve been to DC dozens of times, and follow politics closer than most, but this was my first experience on Capitol Hill. I really wasn’t sure what to expect, but in our initial meeting with the ACSA Lobbyist, Jim Hyland, he provided some useful information on the lobbying process and how to conduct our visits.

Our morning meeting with Senator Ron Wyden provided more information on the

legislative process and how close this bill is to getting the required votes in both Houses

of Congress.

I was impressed with the staff and legislative aides in each senator’s office that we

visited. Despite the steady stream of visitors, (many of them drop-ins) and phones

ringing off the hook, everyone we encountered was polite and professional. We even

caught Senator Van Hollen (D-MD) in the hallway on his way to a meeting and he stopped to

give us a few minutes to make our case.”

Carlo Luri: "It was a valuable experience — and it’s so important for Washington to hear the voices of our industry. Without direct contact with our representatives, it would be all too easy for discussions like the craft spirits excise tax to get lost in the greater topic of tax reform."

Can you describe the work you do with Whiskey Systems?

RB: “I am the national sales manager for Whiskey Systems. We create software that helps distillers manage every aspect of their distillery operations. My role is to reach out to distillers and demonstrate our system’s capabilities while explaining the benefits and value that it offers. We also offer consulting services, so I help distillers get solutions to compliance, business planning, and start-up matters.”

Can you describe your role at Bently Heritage?

CL: "As the Director of Government Affairs at Bently Heritage Estate Distillery, I help coordinate with our local community and government. This involves everything from working with the county and town regulations, to addressing legislative issues at the state and federal levels.

For example, this past spring we coordinated with our community and the Nevada state legislature to help create a new Estate Distilling category. This new category will allow Bently Heritage to produce spirits grown on our ranch right here in Minden, Nevada; it will also reduce some sales restrictions. It’s not only a healthy move for Bently Heritage as a business, but also for its larger role in the community: we’ll now be able to create more local, highly skilled jobs at home here in Nevada."

What were some of the most effective talking points from your discussions on Capitol Hill?

RB: “The distillery operators made a compelling case when pointing out the disparity in the tax treatment that they receive compared to craft breweries and wineries. [Parity] Several distillery owners cited their experiences moving into distressed areas within their cities, reclaiming idle properties and contributing to the revival of neighborhoods. Craft Distilleries add color to a community and create a draw that will attract other businesses and investment. They also mentioned that the surge in craft distilling has given consumers more variety to choose from.

The suppliers and service providers to the industry made a similar case, as many of them are small businesses as well, who could grow and add jobs if the tax relief bill becomes law.”

CL: "Small entrepreneurial businesses are creating a lot of America’s new jobs, and the craft spirits industry is a sterling example of that. While distilling creates direct jobs in manufacturing, its indirect job creation effects are felt in agriculture, tourism, construction and machinery manufacturing. Locally owned craft spirits producers are distributed widely across the U.S. Many start-ups like the Bently Heritage Estate Distillery in Minden, Nevada are based in rural America, where the high-quality jobs provided by the craft spirits industry are in demand."

In what ways do you think the reduction of the Federal Excise Tax will help Republic Restoratives specifically?

PC & RG: “It's hard to overestimate the impact that this change could have on our business. The tax burden on small distilleries is often prohibitive. Paying our taxes isn't an option but when we're having to choose between growth strategies, hiring staff, expanding production etc., or paying our taxes, the current rate seems counter productive.”

In what ways do you think the reduction of the Federal Excise Tax will help Whiskey Systems specifically?

RB: “We talk with distillers all the time who want, and need, a means of efficiently managing their operations, tracking activity, keeping good records, and generating their compliance reporting. Using a distillery management system would free them from the administrative tasks that don’t add value to their enterprise. Unfortunately, they often have limited or inconsistent operating cash flow, so they are relegated to DIY methods that are often far less effective, and take valuable time away from revenue generating activities.

If the bill passes, the tax relief would free up cash which operators could use to acquire a distillery management system. Increasing the customer base allows us to hire more developers and increase the features and functionality of our product.”

In what ways do you think the reduction of the Federal Excise Tax will help Bently Heritage specifically?

CL: "Starting a small distillery is a very capital-intensive endeavor. Not only must all the equipment be purchased upfront, but revenues are often not realized until the spirits can be properly aged. For a small business, paying excise tax during this phase — regardless of profit — can mean the difference between success and failure. For Bently Heritage, a reduced excise tax means that we will be able to hire more local employees and grow the business faster by reinvesting money that we would have otherwise paid. At the end of the day, it’s a win for Bently Heritage, for the town of Minden, and for the state of Nevada."

In what ways is the distilling scene in D.C. unique?

PC & RG: “We live in a very small ‘state’ so we all know each other well. Many of us are in a single neighborhood of the district in fact. There really isn't much competition between us - we all operate with a ‘rising tide’ sort of mentality.“

How have you witnessed the growth of craft spirits?

RB: “I talk to a lot of distillers and I continued to be impressed by the variety of professions and vocations that are coming into the industry. I suppose it’s like the spirits they produce -- many varieties from a broad assortment of ingredients. I think this diversity is a strength as it helps define multiple paths to success, and perhaps multiple definitions of success as well.

I see a growing focus on identifying and measuring key metrics within distillery operations. This can mean improvements in yield, reducing the cost of goods, or speed to market. Whether you are wildly successful, struggling to hit escape velocity, or somewhere in between, there is always room for improvement.”

What were some highlights from the Fly-In?

CL: "ACSA was able to pack a lot into a short amount of time, but hearing directly from representatives of the TTB that they want to assist our industry by reducing regulations was a significant highlight that will help craft spirits producers across the country."

How did the reception at Republic Restoratives go?

PC & RG: “Wonderful! We were honored to host so many industry leaders in our space. And it's always fun to talk shop with other distillers over cocktails.”

A Cocktail with Your ACSA Team

Sometimes the best way to beat the summer heat is with a refreshing seasonal cocktail. Over the next few months, we'll be checking in with our Board members and staff for their favorite, go-to cocktails!

As we hit the middle of August and autumn looms, Maggie Campbell, Head Distiller and Vice President of Privateer Rum, chose a fall-themed New England Daiquiri. Check out the recipe below!

Welcome Newest Voting and Affiliate Members!

ACSA extends a warm welcome to a few of our newest members:

Still Austin Whiskey Co. (TX)
Z Brown Distillery (GA)
Burnham Commercial (PA)
Larry Bell (MI)
Sinclair Distillery (TX)
George Washington's Distillery (VA)
Twin Valley Distillers (MD)
Thomas W Smith (TX)
Charleston Distilling Co. (SC)
Tate & Co Distillery (TX)

Find out more about becoming a member here.

Regional Focus: Pittsburgh, PA

Although ACSA’s 2018 Distillers Convention and Vendor Trade Show in Pittsburgh is still a few months away, it’s never too early to provide reasons why you should attend: FOOD and DRINK! The Steel City, historically industrial, is now a popular destination for those looking for a bit of historical charm with trendy, innovative delicious food and drink. Read on to find some local hotspots.

Find Asian-Mexican fusion, like wagyu short rib tacos, poke, and street corn, at täkō in the Steel City’s Cultural District, just a short walk from the Wyndham Grand Pittsburgh. Täkō also serves up carefully crafted cocktails and a series of margaritas to pair with the octopus tacos. Enjoy a modern take on the classic bars of Italian cities at Grapperia. Grapperia serves up unique grappa cocktails, like ”LaVanda” (Lavender Infused Grappa, Green Pepper Honey, and Lemon Juice) as well as tasty small bites and a selection of Italian wines. For a hearty meal of smoked lamb neck or rabbit & dumplings, swing by Butcher and Rye, another short walk from ACSA’s host hotel. Butcher & Rye also features an impressive list of cocktail options, with a heavy focus on whiskeys. In fact, the restaurant has twice been nominated for a James Beard Award in Outstanding Bar Program and was the first Pittsburgh bar to be nominated for the category. And if you’re looking for a break from the stellar food and drink of the city, stroll through one of the many museums including The Carnegie Museums and the Andy Warhol Museum, curated with permanent collections of the art of the ‘Burgh-born artist.

Along with the growing craft breweries of the Steel City, several distilleries have surged. The award-winning Maggie’s Farm Rum boasts a robust lineup of world-class rums, including several reserves like the Queen’s Share Oloroso Sherry Cask Finish. Visit the distillery to taste one of their rum cocktails and check out the space. For more award-winning spirits, check out Wigle Whiskey, the products of Pittsburgh Distilling Co. Wigle is named for one of the “pioneering Pennsylvania distillers,” Philip Wigle. Wigle offers tours and tastings at their Barrelhouse, Distillery, and in the lobby of the Omni William Hotel. Just a short drive from Pittsburgh is Red Pump Spirits in Washington, PA. Red Pump offers a line of liqueurs, whiskeys, and vodka. Just down the street from Red Pump is Liberty Pole Spirits. Learn about the Whiskey Rebellion of Western Pennsylvania and try one of Liberty’s whiskeys and bourbons.

Look for an ACSA announcement detailing the Pittsburgh distilleries on the ACSA tour taking place on Sunday, March 4, 2018!

Did You Know?

The TTB has issued nearly 2400 DSPs! Find the full list here.

In hopes of preventing scurvy, the British Navy gave rations of rum to its sailors until the 1970s (but it was actually the addition of lime — i.e. vitamin C — that kept the scurvy at bay).

In 2012, 13 years after it created the Kentucky Bourbon Trail, the Kentucky Distillers Association (KDA) launched the Kentucky Bourbon Trail Craft Tour, to highlight the growing impact of craft producers in the state. According to KDA, in 2016 the Craft Tour welcomed nearly 180,000 people, a 32 percent increase over the previous year.

The original whiskey sour recipe called for egg whites. Most whiskey sours today are made without egg whites. The recipe for the pisco sour, created just over a century ago using Peru's national spirit, was based on the whiskey sour and continues to include egg whites as a critical component.

Don't miss these spirits holidays for the rest of the month:

August 16: National Rum Day

August 20: National Lemonade Day

August 21: National Sweet Tea Day

August 22: National Spumoni Day

August 25: National Whiskey Sour Day

August 28: National Red Wine Day

August 29: Lemon Juice Day

Social Media

Do you have a new spirit release, an upcoming event, or some news to drop?

Follow our social media channels and Tweet at us (@craftspiritsus), connect with us on LinkedIn, or post to our Facebook Page and we'll be sure to share it! Make sure to use the hashtags #ACSA and #CraftSpirits!