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Huffy2k

Contract Distilling

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We were approached by a local group that is interested in pursuing a DSP down the road a bit.  In the meantime they are looking to find a partner to produce a whiskey to their specs.  Not that we have much excess capacity but we would be able to carve out a week every couple of months to this project.

Has anyone done this and if so, how do you price it?  Time and materials are the obvious factors but how do you factor current cash inflow versus losing the future retail potential of those weeks we're not producing for our own products?  Any help/guidelines would be appreciated so we can make a proposal to these guys.

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Unless you're highly incentivized to do this from a personal standpoint I would recommend against this. It doesn't sound like you are the appropriate size to deliver a contract distilled product at a competitive rate.

Do you run 24/7? if not you could run it over the course of a couple weekends to try and keep you producing your own.

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Huffy,

 

I have a customer that is a contract distiller.  He started off with one of our 300 gallon Ultra Pro Vodka Stills, almost 8 years ago.  He purchased his steam boiler, mash tun and fermenters from us as well.  Within 2 years his orders were surpassing his production capacity, so he ordered an 800 gallon Ultra Pro Whiskey still and seven 800 gallon fermenters and two 800 gallon mash tuns.  Then a little over a year ago his orders surpassed his production capacity again and he ordered a 2,500 gallon Ultra Pro Whiskey Still, 2,500 gallon mash tun and seven 2,500 gallon fermenters with agitators as well as some receiving tanks.  He also ordered a 10,000,000 BTU low pressure steam boiler. 

He says that by the end of next year he will be ordering another 2,500 gallon complete system from us.  He is one of the most successful distillers that I know.  The 2,500 gallon still alone produces 75 gallons of white dog per hour.

  Contract distilling can be extremely profitable however it takes a lot of production capacity and you must find all of the advantages that you can.  The guy above grows his own corn and grows large amounts in a very economical way.  This is just one of the advantages that he has created over his competitors. 

 

Anyway,  If you decide that you can't help the people down the road, below is the gentleman that I mentioned aboves contact info.  He can give them great spirits at a great price.

 

Rusty Cox

1167 Davis Valley Road

Rural Retreat VA 24368

Cell: 757-593-1055

Email: davisvalleywinery@hotmail.com

 

Thanks.

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