NGS Vodka...

[darkchaser]

If a person was just diluting GNS down to 80 proof and filtering, would they need a still? I only ask because I see everywhere that people are saying that they can't start for less than 100K. Wouldn't this significantly reduce the equipment costs? Why not start with that and once you've made a little money - upgrade to a still? Forgive my naivety. What kind of expenses would a person have besides rent, utilities, fees and licensing, product, etc.?

[Silk City Distillers]

Why not just have someone else manufacture your product under contract and focus on building your brand? Why even bother with the real estate and manual labor involved when someone else probably has better economies of scale?

The still represents a small fraction of your startup budget, maybe slightly more once you factor in mashing equipment, fermenters, and pumps. You would likely still face all the same buildout costs as a distillery, because you will be handling bulk spirit. From an authority/jurisdiction perspective, you might still be exposed to all the same budget-busting expenses as everyone else sprinklers, building and fire code gotchas, multi-month expense payments while awaiting licensing, etc etc.

[Scrounge]

Some people believe that just proofing down NGS is lame. There is no craft in that. Starting a "distillery " for under a 100k is what they are referring to. Which is really not hard to do. Just depends on what size distillery and if you are willing to work. Did I mention proofing down NGS is lame.

[Skaalvenn]

I'm in under 100 and making vodka the hard way.

The only pre made alcohol that enters my facility is in the form of beer to go in my fridge.

[mattabv]

also the "distilled by" and "bottled by" factor

[darkchaser]

Why not just have someone else manufacture your product under contract and focus on building your brand? Why even bother with the real estate and manual labor involved when someone else probably has better economies of scale?

The still represents a small fraction of your startup budget, maybe slightly more once you factor in mashing equipment, fermenters, and pumps. You would likely still face all the same buildout costs as a distillery, because you will be handling bulk spirit. From an authority/jurisdiction perspective, you might still be exposed to all the same budget-busting expenses as everyone else sprinklers, building and fire code gotchas, multi-month expense payments while awaiting licensing, etc etc.

Well, I think that's a great idea - though I live in a town of about 500 people. Nearest distillery is in another state and is 4 hours away. Also, on the plus side - I own the building. It has sprinklers and I once rented it to a winery - which I know is different but they have all sorts of barriers and "bond" spaces and "warehouse" spaces fenced off (all of which are still in place).

Some people believe that just proofing down NGS is lame. There is no craft in that. Starting a "distillery " for under a 100k is what they are referring to. Which is really not hard to do. Just depends on what size distillery and if you are willing to work. Did I mention proofing down NGS is lame.

I'm sure it's lame. I agree with you. My question referred to saving money on "startup costs" to get open and selling product while you build your "distillery". I'm not saying that there will never be 100K into it. I'm trying to think of the cheapest way for me to start. Starting this way could also have the added benefit of figuring out the taxes and taking care of all the accounting an reporting stuff - then I wouldn't have to figure out that while spending my time distilling. Once I've got it figured out I can build the still. Did I mention that I agree it's lame?

I'm in under 100 and making vodka the hard way.

The only pre made alcohol that enters my facility is in the form of beer to go in my fridge.

Thats awesome!!

[Brothers Vilgalys Spirits]

We purchase NGS to make liqueurs. We saved a lot of money starting out this way. Not just the costs of a still, fermenters, mash tanks, etc but the space taken up costs extra square footage costs extra rent. And NGS is not very expensive, so it's not as if there's a huge amount of savings on the cost of materials given the time & energy needed to distill it yourself.

With that said, you'd want to think about the story you'll be telling to your customers. There's a gazillion vodkas out there. Why is yours going to be "special" if you're just using NGS you bought? Why should they purchase your stuff when the macro brands are still going to be cheaper, or there's another dozen "pot stilled artisan magic" brands next to it?

It does sound like the space you've got is ideal to work with (especially if you own it already). But if the story about your brand is "it's local," and it turns out not to really be local, your consumers are going to be disappointed. There's plenty of ways to market vodka, but that's also a crazy-competitive category. Maybe you could make a big deal about your water source?

[darkchaser]

We purchase NGS to make liqueurs. We saved a lot of money starting out this way. Not just the costs of a still, fermenters, mash tanks, etc but the space taken up costs extra square footage costs extra rent. And NGS is not very expensive, so it's not as if there's a huge amount of savings on the cost of materials given the time & energy needed to distill it yourself.

With that said, you'd want to think about the story you'll be telling to your customers. There's a gazillion vodkas out there. Why is yours going to be "special" if you're just using NGS you bought? Why should they purchase your stuff when the macro brands are still going to be cheaper, or there's another dozen "pot stilled artisan magic" brands next to it?

It does sound like the space you've got is ideal to work with (especially if you own it already). But if the story about your brand is "it's local," and it turns out not to really be local, your consumers are going to be disappointed. There's plenty of ways to market vodka, but that's also a crazy-competitive category. Maybe you could make a big deal about your water source?

This is very sound advice I think. So I have a question for you; what were the requirements for you to open (starting with the most costly) taking into consideration that you started without distilling equipment? I know it's in the regs and I'm reading more and more all the time - but I'm sure you know how confusing they can get. That's why I only read a bit at a time and only move on when I fully understand.

[waterpocket]

Question here is existential...who are you as a brand?

GNS Vodka is cheaper way to start. Traditionally a lot of gin an liqueur makers didn't produce their own base spirit...the artistry is in flavoring and botanicals.

But what if you base your business and brand on diluting GNS? What are you really?

Seems the question is answered by what you do next and if your market strategy works overall. Technically there's only a few variables you can control in GNS dilution.

It matters to me as a drinker. But does it matter to your target customer I think is the better question to ask...

I wouldn't actively seek out a GNS diluted vodka....but would I drive an extra hour to get another bottle of RoundBarn's Divine Vodka...yes!

[whiskeytango]

And I thought only 19 year olds would drive an hour to get a bottle of vodka.