Deep Creek Distilling

He is a new one for me, being new to distribution into a 3-tiered State (Texas). I was approached by a gentleman who replied to a notice I posted on social media about distribution outside of my home state. This individual says he can get me distribution through the distributors he already works with and of course butters me up all the way. He is talking about 20- 30 pallets of product per delivery (140 locations). Here is what he wants to make this happen: 1. A $6,000 retainer fee just to start the discussion - 1st red flag for me. 2. 16% commission from what the wholesaler gets 3. $3,000 a month to start marketing and conducting tastings. 4. 1% commission in perpetuity as long as I am still selling in the state if he were to die - his pension plan I guess. 5. He will be responsible for conducting events, at my expense (expense account) and that amount may go as high as $5,000 a month. 6. Shows me distributor pricing (35% to move the product) and retailer pricing of 25% markup but those are his numbers, who knows what the real numbers will be. The greedy side of me says that this is an opportunity to grow fast. The cautious side says that he isn't really promising to do anything. The retainer fee for me is OUT. This person cannot produce a valid contract with any numbers on it, how do I know the first order will not be for 1 pallet or nothing at all. I can get out of the contract in 30 days, but he still would have my $6,000 retainer and probably another $3,000 before its all said and done. Is this normal? Seems like I am the one who has to promise financial performance and this independent consultant promises absolutely nothing. Seems like I am working for him. Can anyone shed some light on what is normal? Any I know everything IS negotiable.

We are a veteran owned distillery and we successfully got our products in the local CGX stores. BUT the AAFES is a nightmare for us. Yes, the Rangeme site is a pain and they are always seeking ways to take money from you and tell you that they can help build awareness and therefore sales (which is a stretch). Now, the buyers for the AAFES tell me that they will look at any brand but they lean on the National and larger Regional brands mostly. What ever happened to giving a Vet a break? BTW, the AAFES still has not accepted our products.

I agree with Sudzie on many topics but still at a standstill. Our small distillery sells roughly 1000 cases (12 bottles in a case) a year. We are in a control state (Virginia) where the ABC stores are the only retail supplier. The bad part is that the ABC store controls how many stores they will put your products in, everything else has to go special order, which means that the bar managers have to ask for the delivery the first time. I used to do the sales (as I think all owners should because we usually do a better job) but there is just not enough time to do sales and distillery operations. The time that I am not selling, I am delivering bottles to individual restaurants/bars- which is ridiculous and not cost/time effective. BTW, did I mention that the ABC takes roughly 69% of bottle price as a tax? The ABC does pay us for stocking fee and sales commission per bottle if I sell and self distribute. So, my profit per bottle is between $8 and $11 depending on the spirit. I don't see us getting to 2500 cases per year without a sales rep and I can't see where hiring and paying a sales rep will work either. Any ideas??

We use TransData Solutions for or EDI, inexpensive and gets the job done.

I wonder the same thing. I have spoken to a few other platforms and they all say the same thing: YOU have to drive the sales and awareness, they are merely a shipper. I asked if they had followers or people who regularly purchase so I could tap into that market (Drizzly is one), but the answer is usually "Not really". So if we as distilleries have to still do most of the marketing, why do we need the Speakeasy's of the world?

Great information! We have developed sales sheets that I think look pretty good, but when compared to some larger brands, it just doesn't look that professional. If the restaurant/bar does not place an order after my presentation, I leave behind the sales sheets to follow up in a few days. Usually by then, the sales sheets are gone so I wonder what the real effectiveness of them are? Also, how do members approach getting a bar/restaurant to carry your spirits? I have tried making an appointment with the bar manager, but that only works if you are a National brand. I have tried just dropping in and introducing myself and HOPE that the bar manager is available, sometimes needing several trips just to see them. There has to be a better way, any ideas? Sales Data Sheet CH Gin.pdf

We are also a veteran owned/operated distillery but located in Virginia. We have been trying (unsuccessfully) to get into the Norfolk Exchange for 3 years. Fortunately, we just got accepted to the US Coast Guard Exchange. HOWEVER, doing business with any Federal Government requires that the distillery be EDI (Electronic Document Interchange) compliant, which is expensive. Does anyone recommend an inexpensive EDI provider??

We are a small distillery and it would take us a year to fill up that container ( we are doing exactly that). But you have to take the barrels off the top when dumping them, you can't pick and choose this way...Older barrels will be on bottom...

I have used Rocky Mountain Barrel Co for fresh dumped barrels on a few orders. J.B. Thome and Co. is another barrel/spirits broker you can check out. The barrels I received from Rocky Mountain were just as advertised and held liquid well. Shipping is always a big expense, but the barrel prices are good.

Yes, we currently do this with our barrels. Just change your plant diagram and add the container as a bonded premises. Be sure that the security is acceptable as well.

Does anyone have a good website designer they would recommend? The ones I have contacted are either a bit shady feeling or they want $5,000 to make a WIx, Weebly or WordPress site. Any help would be appreciated!

Please send me a catalogue as well. Maybe you are all online now as some of these posts have some age on them. Please email me at r.ferguson@fergusonins.com

Hello to everyone! I am a new member to the group and just got our TTB license this week. Now the real work begins. As much as I have read and studied (practiced some too) on the subject of distilling and running a small distillery, I realize just how little I actually know...about everything! I hope to lean on the group to help with simple questions that I am stuck on or really need some expertise from the group. I also hope to contribute what I learn or have experienced with the group as well. My question is about proofing and certified instruments. Keep in mind that we are trying to be budget conscious but not cheap...which hydrometer/alcohol proofing tools are best? I kind of like the digital meters that do it all but not liking the $3,500 price tag. Are there other models that are approved for use by the TTB? Or should I just purchase the wide array of glass instruments instead? If I do purchase the glass hydrometers, what alcohol range instruments should I purchase. We will be making clear spirits, gin and whiskey. I have read some of the other comments and still not sure what direction is best, any insight would be appreciated.