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Dehner Distillery

Prepair for the FALLOUT!!!

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Ironton,

Good view. But you can drink a lot more beer than you can cocktails. Plus sounds like you are not serving beer.... 

I have not given in at all, as a matter of fact we just expanded again for the 4th time. I am one of the highest production distilleries in the mid-west. Not going to lie contract bottling is a great thing.

If we can just get this FET down..... O MAN..... let me spend some money......

 

Southernhigh..... seems like your guy needs a continuous still not pot stills.

 

I really like Glens rant.... I guess its how you look at it. I am super careful, but then you have people that just dive right in thinking they know everything. I have seen time and time again new distillers come into my place and see some of my used of re furb'ed equipment and think "gross or something like that" they go and buy brand new stuff.... now most are out of biz or on there way out, meanwhile I'm chugging along.

Best of luck to everyone. I never would wish anyone out of biz because that is not a road I would ever want to go down.....

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On 8/10/2017 at 9:56 PM, Dehner Distillery said:

 

Good view. But you can drink a lot more beer than you can cocktails. 

 

I would disagree with that statement. I believe you are referring to volume assuming that a cocktail has a higher ABV, but this is not normally the case. Cocktails and Beer are both measure by ABV and the average cocktail has an ABV similar to an average craft beer. If it is more then just charge more, much like a high ABV beer. With the same ABV, Glass for glass I can personally drink more cocktails than beer based on the fact that I get full after a few craft beers and I can drink cocktails till I black out before I get full. And based on the scene in Denver I would say most consumers would agree. The only problem that this poses is serving too many craft drinks and having blacked out millennial's in the tasting room.  *** I do not condone getting blacked out ****

 

To back the logic I explained before,  66oz of craft beer ~ $24 and 66oz of cocktails ~ $48. The great thing about our industry is that the market share is so large, that it allows everyone the opportunity to do things their own way and be successful... To each their own. 

I am glad to hear you are doing well and continue to grow. I am excited that the market as a whole has plenty of room for growth and I am even more excited that there is almost limitless amounts of room for innovation. 

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On 7/23/2017 at 4:18 PM, Ironton said:

One comment I found interesting was the 1000g for beer at $8 a glass. In my area its more like $7 a glass, but non the less that is about $56,000 on a 1000g batch. On the same 1000g system with a 10% yield you get $68,000 assuming you sell a 1.5 oz shot for $8. Now get your yields up to 20% and sell your drink for $10 (comps in my area) you get $170k. 

Being mostly a quant I like that way of comparing the two. 

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Y'all need to stop assuming rational behavior. Yes, some individuals will behave rationally.  But most will still buy the "cheaper gas" at Costco and never realize the significant drop in mpg (if you catch my analogy)

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I do, but I think that's a bad example. I track my mpg and haven't found a major efficiency difference between any of the major brands. (Sorry for the tangent)

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Interesting  some of the math in here..... but I think math alone is oversimplifying things...

Lets assume the beer is half the margin of the spirits. When you sell a drink you can either pull a beer from the tap ............ or you can have your drink mixer pull some fresh herbs (that you need to bring in every couple of days), muddle, add crushed ice (that someone likely smacks with a wooden hammer), flavors, juices, cap and shake then pour and pass... dont forget rinse out shaker etc. 

The costs of the addtional time, man power (you have alot of people to serve) and all the extra mixers and attention has to be added into the equation. And lets not forget you need to pay that "mixologist" too. And also the difference in the time and energy (gas/electricity) just to make the product...

I agree the profit in the end is still higher - but not quite as drastic as youd think.

Just my .02

-Scott

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