RobKnode

Hi Chris, I don't know much about the distilling side specifics, but I can help you out with your Commercial Insurance and TTB bonding. With a short chat on the phone, I can give you an idea of insurance & bond costs. I currently work with several Small Craft Distilleries here in Washington and up and down the coast so I do have a bit more experience doing this in comparison to some of the other agents. Let me know if I can help out. Rob Knode, Balcos Insurance, 800-292-3456 PH, rknode@balcosinsurance.com

I am in the business planning stages of my distillery. I am using Bill's book as my starting point and moving forward. But I wanted to get some advice on cost projections for my products (vodka and bourbon). Right now, I am breaking things down to the bottle level. I am planning $2 per 750 ml bottle for raw ingredients (grain, yeast, water), $2 per bottle for bottling and labeling (glass, label) and $1 per bottle for packaging (boxes, pallets). Is this reasonable? High or low?

Also, I was wondering what to plan for a tabletop bottling machine to get us started.

Thanks for any advice. I'm sure I'll have more questions. I appreciate ADI and the willingness of this industry to encourage upstarts!

I hate to bring up the otherside but the cost consideration should be taken into account, and by that I mean the financial side. You should look at the cost of assembling your professionals and setting up an entity for the distillery, usually LLC or Corp. It probably varies by State, but a LLC will probably be less than $500 to set up and a Corp usually runs $1000. Be sure to bring in your accountant and insurance agent to discuss what entity might be best for you. If you have a lease on a space or equipment, factor that in, and then look at the cost of your Bond for the TTB ($400-$2000 for the initial DSP bond at 16K) and insurance (General & Liquor Liability at least - based on expected sales, and Property & Business Income -- based on limits, deductibles and location). BEFORE you sign any lease agreement, be sure to consult with your insurance broker and attorney to be sure you are not oblibating yourself to more than you think. Once the lease is signed, it is hard to go back and negotiate. Didn't mean to damper your enthusiasm, but you need to factor these items in too. Rob Knode, Balcos Insurance, 800-292-3456

Hi,

Does anyone have any recommendations for an insurance agent or company to use for product liability insurance? I would like to use someone who has experience and expertise in the distilled spirits field, as the normal channels I have tried seem to be confused by some of the laws and regulations that would affect insurance coverage for spirits companies.

Thanks,

Jill

Hi Jill, I would be happy to help you out if you are on the west coast. I am a commercial insurance broker at Balcos Insurance in Bellingham, Washington, and I have been working with several distilleries as this niche develops on both the bonding and insurance necessary to cover your operations and products. Depending on where you are located and the extent of your sales, we should be able to help you out. Best to reach me at 800-292-3456, or my email at rknode@balcosinsurance.com

Thanx, Rob

Rob Knode

Balcos Insurance

192 E. Bakerview Rd., #202

Bellingham, WA 98226

I have seen some permits take longer and some go very quickly. It usually comes down to having the bond and application exactly the same. If there is ever a descrepency, there is considerable time involved in getting new original documents drafted. It can be as simple as a letter being capitalized or not, an apostrophe missing, or the exact mailing or business address not matching. Once there is a problem, it has to be corrected and the app seems to go back to the bottom of the pile. Sending a preliminary app and bond to the TTB for review seems to help and the staff at the TTB is usually very helpful if you need to call them direct.

I have been involved in the hospitality industry for over 25 years, working in restaurants, selling fine wine, insuring restaurants, hotels & inns, micro breweries, wineries and most recently distilleries. I have a passion for food and wine. By working with many new and existing distilleries, we have gained expertise in placing the correct insurance and obtaining the necessary license & permit bonds for operations. We currently work up and down the Pacific Coast. I reside in Bellingham Washington but work with clients in Washington, Oregon, California, Idaho, Alaska, and Arizona. If you reside outside of these states, we are happy to assist you in finding a local insurance professional who can help you. Feel free to contact me if we can be of assistance. 800-292-3456 PH, 800-750-6667 FAX, rknode@balcosinsurance.com Thanx, Rob