Booze Business Heroes

March 23, 2020 1 Comment

Distillers are Making Hand Sanitizers and More

The current pandemic is not the first time that the nation’s distilleries have answered the call to do their patriotic duty by using their facilities to help fight a war. In World war II, most distilleries were converted to produce industrial strength alcohol to make such products as plastics, ammunition and synthetic rubber for tires.

Most important, a few distilleries and their chemists were recruited to make a crucial medicine — penicillin. Making that lifesaving product by growing spores was very similar to cultivating and growing yeast. Massive amounts were produced and who knows how lives were saved by this development.

So, it’s really no wonder that many distilleries, both large and small, have turned their attention to meeting the hand sanitizer shortage and manufacturing them.

Industry Leadership

The large companies have the most capacity and resources to enter the battle. Mark Brown, President and CEO of Sazerac (Buffalo Trace Distillery) and publisher of the leading industry newsletter, has devoted time and attention (including over the weekend) to inform distillers on a wide range of matters — FDA, TTB, and WHO guidelines and directives.

Pernod (Absolut), Bacardi, Amber Beverage Group, Brew Dog, and others have entered the fray. In addition, it should be noted that, aside from making hand sanitizers, many spirits manufacturers and wholesalers are actively supporting a wide range of resources aimed at helping bars, restaurants and service workers. The list is endless — Buffalo Trace, Michter’s, Diageo, Gallo, Jameson, Beam, Patron, Tito’s, and many more. The list of distributors supporting local hospitality establishments and staff covers the nation.

Craft Distillers

From New York to Illinois to Oregon, craft distillers have begun manufacturing sanitizers and either selling them at what it costs them to produce or just giving them away. In a March 19 NY Times article, Brad Plummer, a spokesperson for the American Distilling Institute (a craft producers association) indicated that this is not “an economic lifeline” for distillers.

Mr. Plummer said that craft producers have received calls from health care workers, police, soup kitchens, homeless shelters, and the general public. He also indicates that as many as three-fourths of craft distillers are involved.

The biggest problem? Finding plastic containers to use. Some are using glass bottles and others are asking people to bring their own containers to be filled.

Let me tell you about a few of them

Brooklyn-based New York Distilling Company is using its straight off the still, undiluted Perry’s Tot Navy Strength Gin, to create bulk hand sanitizers. According to Alan Katz, co-founder and owner, “We have access to off-the-still gin made in our Brooklyn distillery that we can turn into a homemade sanitizer that meets CDC recommendations. We can use our resources to help support friends in the hospitality and trade who are in need right now.”

Koval Distillery in the Ravenswood neighborhood of Chicago is also turning spirits into sanitizers. “This is war, this really is war,” said Koval Distillery co-founder, Sonat Birnecker Hart. “Like in any other war effort, people are asked to step up and right now hand sanitizer is needed a lot more than whiskey.”

The bottles produced will be given to Chicago hospitals, retirement homes and daycares. “Police officers, firefighters, EMTs, these are people on the front lines that are dealing with this and if they’re concerned with not having hand sanitizer and that makes me worried, so I want to help them,” Birnecker Hart said.

The Vale Fox Distillery (Tod & Vixen Gin) in La Grange, NY (Duchess County) is a brand-new startup launched late in 2019. Despite their size, they have turned their attention to this crisis and dropped everything, in order to do what they can to help. As mentioned earlier, the biggest issue has been getting plastic bottles.

According to the founder and owner, Eral Gokgol-Kline, “Making hand sanitizer allowed us to support the health of our community and raise funds to support the bars, restaurants and employees who are struggling during this difficult time. In short, it was a no brainier and we are privileged to be able to help.”

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I have always loved and respected this industry and the men and women in it. This horrific situation also makes me very proud of these heroes.

Together we will get through it.

Is there anything gaz regan wouldn’t do to get attention?

July 29, 2019 No Comments

Would getting lung cancer, and getting rid of it while Tales was going on sound like him?

Gaz and I have known each other and been friends since the 1990s. More recently, we have become business associates in matters pertaining to the role of bartenders in brand building and business development. Together we launched Worldwide Bartender Database

We speak often and a short while ago he told me that during the course of a medical exam, the doctors found a spot on his lung that needed to be removed.

I freaked out. But he was particularly and unusually calm about the matter.

Got me to thinking… was this real? Was he pulling my leg? Or was he up to his old, attention getting tricks.

Now, before you think me cold and heartless, let’s examine Mr. Regan’s shenanigans:

In 2001 he started Cocktails in the Country, a bartending course believed to be the only bartending program in NY that used real spirits, as opposed to colored water.

By 2007 Jim Meehan, Dave Kaplan, Don Lee, H. Joseph Ehrmann, Jacques Bezuidenhout, Jamie Boudreau, Jared Brown, Anistatia Miller, Joaquin Simo, Jonathan Pogash, Naren Young, Philip Ward, Robert Hess, Sammy Ross, Toby Cecchini, Toby Maloney, and Willy Shine, among many others had all taken the CitC course.

In 2008 he started wearing eye-liner. (That’s right… among other reasons, he claimed it helped him make the point with bartenders that eye-contact with customers across the bar was an important element of ‘mindful bartending.’)

In 2009 he changed his name so he, like Prince, could be known as “The Bartender Formally Known as . . .”

In 2010 he started the Finger-Stirred Negroni Craze, which captured the world’s attention. Not long after, he had his finger cast in stainless steel and made into a stirrer.

And now, in order to create a buzz, gaz didn’t go to Tales of the Cocktail this year. Choosing instead to have half of his left lung ripped out.

So, you’ll forgive me if I was a tad skeptical.

“Well, in all truth” says gaz, “I didn’t have much of a choice in this one cos, according to my doctors I had a tiny pea-size lump of very aggressive cancer in there, but I couldn’t help but make a big deal of it, cos I’m known for never missing a chance to shock the world.”

Truth of the matter is that, after his operation, tests were performed, and gaz has been declared to be totally cancer free, and he’ll be out on the road again after he spends a couple of weeks being spoiled rotten by Amy his wife.

“I have to get back out there to make the money I missed out on by pulling this particular stunt,” says gaz, “So, if you doubt, for a second, that a two-time cancer survivor with hardly a tooth in his head, only half of a tongue and half of one of his lungs is up to the task, get in touch with me at The Worldwide Bartender Database and I’ll show you how it’s done.”

In truth folks, gaz has been laid up and concerned but now that he’s in the clear, this blog post was his inspiration. It’s his way of… well… back to being gaz regan.

All I can say is: Twasn’t my fault, Mum… He put me up to it.

So, forgive us if we had a bit of fun at f**ken cancer’s expense.

The Future of the Booze Business

December 13, 2018 2 Comments

RNDC and LibDib join forces

It was announced recently that Republic National Distributing Co (RNDC), and Liberation Distribution (LibDib) have formed a strategic alliance and will be working together.

I consider this a huge development for the wine and spirits industries and I was anxious to learn what it means for the future. I very much admire Tom Cole of RNDC and Cheryl Murphy Durzy of LibDib and was thrilled to have an exclusive interview with both of them. The three of us talked about how this development came about and what it means for the distribution of both large and small brands.

RNDC is the second largest distributor in the US, operating in 22 markets with a long history dating back to before Prohibition. It is an organization built on the strong foundations of three family-owned companies. What I’ve always admired about RNDC is their values, marketplace effectiveness, and people you enjoy working with.

LibDib is the first technology company to offer a 3-tier compliant model that provides an option for the growing number of makers (suppliers/manufacturers) that are entering the market. Launched in June, 2016 and they describe themselves as: “A wholesale distributor of alcoholic beverages enabled through a web and mobile platform.” (An earlier article I wrote about LibDib is here.)

As reported by Wine and Spirits Daily, LibDib suppliers will be able to use RNDC’s logistics and expand throughout their footprint, while RNDC will have access to LibDib’s technology and data. To me, it is also a union of the traditional and new routes to market.

So, what does this mean?

According to Tom Cole:

“When I first learned about LibDib, I was fascinated by the commitment to the 3-tier system…I believe in and am a passionate protector of that system, so the LibDib approach offering effective online ordering, satisfies the need for small makers that are having difficulty getting to market…”

Cheryl added:

“We use the term evolve — How are we going to evolve the 3-tier system to meet the needs of the modern consumer and what they are looking for in spirits and wine.”

In effect, LibDib will have the opportunity to expand from its current operations in New York and California and ultimately operate in RNDC’s 22 markets. They’ll be able to tap into RNDC’s advanced logistics to deliver craft products to buyers in all available markets.

In turn, RNDC will have access to LibDib’s technology and data collection, thereby enabling them to further expand their value and services. In effect, they will be offering their large supplier organizations access to the rapidly changing market place by offering insights and actions into the new and evolving consumer.

What I think is particularly appealing, is that RNDC, which doesn’t currently operate in NY and CA, will have access to those markets in a new and unique way.

The problem being solved

Let’s start with craft spirits products and small brands.

IWSR has produced the Craft Sprits Report 2018, which looks at the current and future growth of craft spirits in the US.

They report that in 2017, the craft spirit volume share of all spirits sales was 3.3% which is 7.5 million 9-liter cases and up 25% from the previous year. They forecast that by 2022, craft spirit brands will account for close to 20% of all spirits and more than double its share at 7.9%.

In terms of value, craft brands accounted for 4.6% share of all spirits and, by 2022, they forecast it to be 10.4%.

What really caught my eye was this statement: “To put the current size of craft spirits into perspective, the 7.5m case total is roughly equal to the entire U.S. brandy category in 2017.”

So, what’s the problem?

The route to market available to large brands is not generally available to small brands, particularly start up ventures or fledgling brands from small craft or other distilleries. The result is a hodgepodge of distribution solutions. Some large distributors will take on these brands but more as an exception than a rule. Come on… you would do the same if you ran a spirits and wine distributorship. It’s a volume driven business that largely depends on mass and mainstream brands. As a distributor put it to me once, “hey, you want my sales folks to stop focusing on a proven winner to sell your maybe-it-will-make-it brand?”

As a result, small spirits companies often rely on wine and beer distributors. Both wine and spirits companies will aim for importers with a distribution network or companies like MHW LTD or Park Street Imports (both with distributor licenses in a few key markets). All in the hope for an effective route to market and in compliance with the 3-tier mandatory system.

The large company conundrum

Developing new products/brands and getting them to market is difficult for the large makers as well.

Imagine you’re a major player in a leading spirits and wine company. You look around and, while your mass brands are doing okay, the craft/small batch brands are eating away at your volume. The cocktail focus has won the attention of bartenders and consumers alike and your mainstream brand is in danger of becoming yesterday’s newspaper.

Your options are to stick your head in the sand and ignore the changing market place and consumer behavior. That won’t work because your kid needs braces so your bonus might be in jeopardy. So, you figure out that you need to enter the fray and either start acquiring some of those fledgling brands or build your own through your innovations group.

Now you have another problem. The distribution and business models are based on large volume and you don’t want your people, or your distributor’s people, focusing on your new “baby” while ignoring the brands that need the attention. You can either launch a small brand-focused business unit or find a better, more cost-effective solution.

As many of you know, at Seagram I ran new products at one point and this venture of combining the clout of RNDC and the LibDib model would be just what I needed to succeed. In short, this strategic alliance between a top distributor and a company focused on small brands would have made my mouth water by allowing me to get into the small producer game, while still keeping my eye on the (big brand) ball.

How this came about

My hats off to Tom Cole who has the vision and smarts to see where the industry is going and to move his business in an advantageous direction. And to Cheryl, whose tenacity and foresight will reap benefits to her innovation.

I’ve known Tom a long time and he’s a visionary, always attuned to the changing marketplace, and willing to explore new opportunities and directions. It’s no surprise, therefore, that when he learned about LibDib, he looked into it.

Cheryl and her family ran a small winery in northern California and learned firsthand what a nightmare it is for a small company to get to the shelves of restaurants, bars, and stores. She created LibDib as a solution. In a relatively short period of time the company has attracted large numbers of makers and retail (bar and store) accounts in New York and Los Angeles. LibDib has become a viable and growing go to market resource.

After a number of exploratory phone calls, they met at the WSWA and learned that they had a great deal in common — the yearning to find a solution for new brands, a shared vision of the future, the support for the 3-tier system, entrepreneurial focus, and approaches to business management. Back and forth conversations and due diligence followed and a year later RNDC invested in LibDib and they are now partners.

What’s next?

There is much work to be done to maximize the potential of this venture and 2019 will involve some beta testing in NY and LA. Beyond that they will be exploring efforts on a state by state basis. There’s a lot to learn and this is a work-in-progress, undoubtedly with a slow and steady pace, making sure all the kinks are worked out. As Tom put it, “We will do things thoughtfully and correctly and increase our likelihood success.”

So far as I’m concerned, this development changes everything.