Dehner Distillery

Prepair for the FALLOUT!!!

31 posts in this topic

The sad thing about the Re-bubblers is the joe public does not know and 99% of people don't care. So If people don't know or don't care then why go through all of the steps? Think how much money is saved / made.

You can't hate someone because they have a different business plan than yours. If they are doing it legal then they are not really cheating.

Who wouldn't what .22c for a bottle of vodka when all you have to do is make a phone call and it just shows up.

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Was just thinking about something that was said as I was driving home today.

something about " the end of stills in crappy buildings"

It makes sense. If there are more distilleries coming on line and more of those distilleries are super nice. Well, when someone goes to a not so fancy distillery it just could possibly make that crappy building distillery look a lot crappier. And if you had a cocktail room in a crappy building, then no one would go to your run down place and you go out of business. POOF>>> your gone......... unless your distribution is awesome.

Just thinking.

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On the off chance that "who wouldn't want the .22c vodka" is not rhetorical, I will say that the person/s that don't want it, are those who have spent the time to search out and discover non national brands, who end up paying a craft premium price for warmed up industrial ethanol.

Its hard to determine which is actually worse for our industry

a )vodka warmers who charge a craft premium for a commodity product

b ) vodka warmers who put "hand crafted by my sweet old granmother" on a tilted label, who then wholesale at $8.00 per, and it sits on a shelf beside a much more expensive actual craft distilled products that can't be brought to market for NGS  price. 

Take your pick, but neither are good for anything other than individual businesses that care little about the integrity of the industry and the price points that will allow actual independent distillers to survive. 

Private label has been practiced since industry inception, but it was very seldom sold as "hand crafted" so as to carry a premium price. We must now be careful that the excess capacity building in our industry does not flood the market with inferior or low priced "pretend craft" product.

Large established distillers generally have the financial backing and marketing machines to take their brands in multiple directions, and at varied price points. In a typical small craft distillery we however have only one main marketing strategy "hand made" . If you don't understand that, and strongly defend it, you are either not looking at it closely enough, or a practitioner of a or b.

 

 

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18 hours ago, Dehner Distillery said:

Was just thinking about something that was said as I was driving home today.

something about " the end of stills in crappy buildings"

It makes sense. If there are more distilleries coming on line and more of those distilleries are super nice. Well, when someone goes to a not so fancy distillery it just could possibly make that crappy building distillery look a lot crappier. And if you had a cocktail room in a crappy building, then no one would go to your run down place and you go out of business. POOF>>> your gone......... unless your distribution is awesome.

Just thinking.

Just personal opinion and experience speaking, but by far the most innovative and carefully made spirits I've tasted were made in old warehouses, barns, and outbuildings, but when I taste in a gleaming fancy distillery I expect the spirit to taste like marketing, rather than quality. I've been wrong, some, of course, and Woodinville Whisky makes a very nice bourbon in an upscale "distilling palace".  YMMV.

ZBob

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There have been some good points made for and against overcapacity. For and against the new buildings with the best German stills vr. econo operations in a old warehouse.

IMO a rising tide floats all boats.Mostly.

"The spirits industry can raise a glass to yet another strong year.

The volume of spirits sold at retail locations rose 2.4% in 2016. Alcohol suppliers said sales rose an even faster 4.5% last year to $25.2 billion in the United States, spirits advocate Distilled Spirits Council reported on Tuesday. Even more impressive, it was the seventh consecutive year that spirits stole more market share from brewers. The spirits industry now commands 35.9% of the total alcohol market vs. 47% for beer and 17.1% for wine. Beer made up close to 60% of the alcohol market in the 1990s....

The strong sales in the U.S. bode well for big industry players like Diageo (deo, +0.42%), Pernod Ricard (pdrdy, +0.69%), and Brown-Forman (bfb), as well as the emerging, fast-growing craft spirits industry that is mirroring the success craft brewers had in the beer world.

Volume for U.S. whiskey—which includes bourbon, Tennessee, and rye—jumped 6.8%, with revenue up 7.7% to $3.1 billion. ...

Distilled Spirits Council reports that volume for vodka, which represents about one out of every three spirits sold, was up 2.4%. Even flavored vodkas returned to growth. ...

the industry buzzword that explains how liquor brands have had success selling consumers on the idea that they should drink less, but "better." ...

Volume for "super premium" spirits jumped 10.8%, while the next-highest priced grouping "high end premium" posted a 5.5% increase. That made up for weakness on the bottom shelf, where volume actually decreased.

http://fortune.com/2017/02/07/liquor-industry-strong-sales-2016/

" In a broad study backed by the American Craft Spirits Association that is being billed as a first-of-its-kind deep dive into the craft spirits movement, the industry has reportedly achieved $2.4 billion in retail sales in 2015, growing at a compound annual growth rate of 27.4% in volume. The market share for craft spirits reached 2.2% in volume last year, up sharply from 0.8% in 2010. ...

This growth—bolstered by the 1,315 craft distillers that are active in the U.S. today—is expected to get continued support from retailers and wholesalers, likely because they've seen the success craft brewers have achieved in the beer world. Within beer, craft producers now control about 12% of volume and are posting growth that far exceeds the total category. There are also well over 4,200 craft breweries today, far more than the amount of distilling peers.

Interestingly, much of the craft spirits industry's growth is concentrated in just a handful of states. The top five states by number of craft distilleries—California, New York, Washington, Colorado and Texas—make up almost 36% of the industry's players. Those states were also popular destinations for craft brewers. That concentration implies that there is a lot of potential for the craft spirits industry to find firmer sales in regions where there isn't a lot of attention today. ...

The big challenge for the craft spirits industry: spreading the wealth. Just 2% of producers today are responsible for 60% of the cases sold. The smaller producers have tiny distribution and are almost always bleeding cash. These young businesses will need to win shelf space at local bars, restaurants and retailers in order to hunt for growth, facing a similar battle that craft brewers confronted before their market got broad support. "

http://fortune.com/2016/10/18/craft-liquor-growing-sales/

Better is where the craft distilling business enters the equation. Its the combination of taste, experience and the total marketing that puts your bottle on the liquor store shelf, or on the consumers table.

Bleeding cash for a small producer can only go on for so long. For some the pain will become the death of the enterprise.

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Fantastic well thought out and delivered reply. Seems accurate to me!

Thanks....

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