It may have taken more than 80 years for it to happen, but craft distilling has emerged from the secrecy of hollows, backwoods and old warehouses to climb on the cover of Fortune Magazine. As Fortune reports, a 40% growth rate in the sale of bourbon is phenomenal and craft distilling is a big contributor. But, it is just the beginning of the craft-distilling story. According to the American Distilling Institute, the number of craft distillers blossomed from less than 160 in 2010 to more than 420 in 2014, and sales of craft spirits grew by 30% from 800,000 cases in 2012 to more than 1 million cases in 2013.
Generations after the repeal of prohibition, craftsmen once ridiculed as moonshiners and bootleggers now gather by the hundreds to teach and learn from each other, and to perfect their craft.
In early April of this year, more than 1,000 members of the distilling community came together in Seattle to participate in the American Distilling Institute’s Craft Spirits Conference and Vendor Expo. Local distilleries offered hands-on training sessions at their distilleries. In the conference center meeting rooms, distillers heard seminars ranging from building codes and financial planning to the role of exotic grains in distilling and strategies for gaining support in the local farm community.
A large exhibit hall housed a growing cadre of more than one hundred manufacturers who supply craft distillers, displaying wares from hand-polished copper stills and stainless-steel fermentation tanks to specialized insurance policies and inventory control programs.
Why the excitement and the rush to craft distilling?
The simple answer is that laws have changed. Many states now offer tax or fee incentives that encourage craft distillers whose production runs are small and who use locally grown products. But, taxes on luxury products such as liquor remain high so changes in the laws are not the only answer.
A more thoughtful answer is that consumers appreciate the products offered by craft producers. One result of the explosive growth in wineries and microbreweries is ever more discerning and sophisticated consumer tastes. As laws governing production have become more favorable, it’s only natural that micro distilleries would follow.
A third answer—often referred to as the Locavore or slow food movement—is that taking time to prepare and enjoy local products is changing the eating and drinking habits of the nation. Why buy a mass produced product when you can support high quality—often unique—foods and beverages from local producers whose reputations are built on serving your community?
From an economic perspective, craft distilling drives local production and supports local businesses. It offers one route to a robust local economy.
To help distillers seek new opportunities and hone skills, the Conference offered two full days of seminars covering topics ranging from distillery construction financial planning, and regulatory compliance to tourism opportunities, creation of unique spirits and working with local farmers.
In one of the many seminars, farmers and distillers addressed their need for consistent big quantities of fruits and grains. Missy Duer who, along with her husband Joe, operates Indian Creek Distillery on their family farm said, “You have to remember that small grains like rye and barley were almost extinct on the family farm after World War I, … these small grains are coming back into vogue because of distillery and brewery demand. “
In another seminar, Cynthia Sterling, of Sterling Creativeworks, discussed creating brands that inspire devotion. She said, “A brand is something more elusive and a little more abstract than a product, a package and a name…a brand is a set of expectations, memories, stories of relationships that taken by the consumer cause them to chose one product or service over another.”
In other breakouts, legal experts and experienced distillers focused on precise issues and addressed the complexities of labeling and measuring alcohol to proof to meet Tax and Trade Bureau standards. The Conference also served as the centerpiece for additional days of hands-on training at local distilleries in the craft of making malt whiskey, vodka, gin, liqueur, brandy and rum.
Throughout the conference, the serious interest and excitement of it participants carried the clear message that craft distilling offers economic opportunities for local communities, and for those who enjoy spirits, the growth of craft distilling marks the beginning of a renaissance in diversity, innovation and quality.
