Ralph at Tuthilltown

ADI is a privately owned company, it is under the control of the owner. The industry needs more than a club for interested persons. TUTHILLTOWN SPIRITS has been a member of ADI since the beginning and we intend to continue our membership. But we do so in the full knowledge that it is not representing the needs and wishes of the licensed distillers. As I said, there is a place for both the ADI and the AMERICAN CRAFT DISTILLERS ASSOCIATION, but let's not get their roles and mandates confused please. ADI has no authority to unilaterally establish standards for the producers. The process of developing the ADI proposal was not transparent to the licensed community, and appeared unannounced. Should AAA be designated the agency qualified to set technical standards for auto manufacturing?

Brian McKenzie and I are involved in the Council at DISCUS. Both us and all those involved in the effort to develop our re-emerging industry nationwide believe there needs be a independent industry association representing the so-called "craft" distillers of the US. ADI has served as the de facto association in the absence of any other, but now the AMERICAN CRAFT DISTILLERS ASSOCIATION has stepped up to the plate. It is a not for profit industry owned and operated organization and will address concerns of DSP permit holders. TUTHILLTOWN SPIRITS is a member of the ACDA, we are also members of ADI and of the DISCUS Craft Distillers Council; we have associated with both DISCUS and ACDA as dues paying members because we want to have a seat at the table when DISCUS is addressing matters which concern me and my business. From time to time Craft Distilling will not share the positions taken by the larger industrial producers which dominate DISCUS. At those times it may be necessary to divorce the Craft Distilleries opinions from DISCUS. It is counter productive to strike an antagonistic posture from either organization. Both can profit by working together and by retaining their individual identities, and speak for themselves as necessary. I suppose one could characterize DISCUS as "bullying". But the fact is, though we may all be low budget, small, family run, agricultural in nature, struggling in the high competitive environment of alcohol, though the DISCUS membership has very deep pockets indeed; we hold a very strong hand in this game. The Craft Distillers and the industrial producers need each other. Slinging mud gets everyone dirty. The members of the DISCUS Council have benefited by their membership through a variety of Legislative conference opportunities coupled with orchestrated visits to Legislators in their offices in DC. DISCUS has included the Craft members in a number of international trade missions underwritten by the US DEPT OF AGRICULTURE. Like it or not DISCUS is a strongly positioned advocate for the spirits industry.

Congratulations Chip.

A brand which starts out small and handmade, then grows to be multiple automatic stills redistilling GNS to produce 850,000 cases a year is in fact NOT a craft operation, nor the product a "crafted" product. I don't think I can name a single craft distiller I know who would deny the success or criticize the growth of any of their cousin distillers, it's what we pray for daily. The reasonable criticisms I hear are aimed at the promotion of the origin of the brand as the current situation. Truth in advertising is the issue. It is not unlike whiskey brands which claim craft origins but are not actually produced by the distillery which is bottling the brand. My basic feeling is that a distillery can not claim a "crafted" distilled spirit product is theirs if they are starting with alcohol made by someone else. It is not appropriate for the TTB or any Legislative body to define what "craft" means unless it's tied to some legislation which benefits, or doesn't, that segment of the production community. BIG SURPRISE! The big spirits producers are hopping on the "craft" bandwagon, this is nothing new. As one writer commented, the consumer who cares will know and the strategy may backfire. It is up to the actual small "craft" distillers to continue to organize and educate the consumer and the media the difference between the two segments of the industry, and the difference between industrial alcohol and "craft" alcohol products. TITOs success is well earned, congratulations. "Handmade" may be a stretch NOW, even if it was once true.

A distiller has a DSP permit from the Fed and the home state of the plant, and produces product through a still. That seems simple enough doesn't it? I've been involved with the discussion on the matter of a definition for what "we" do for three years at least, some of you may have followed the thread here on the ADI Forum during that period and know we found it not really possible to find a definition including the word "craft" which would be accepted by a solid majority of respondents. In the end, such as it was, we opted for the term "micro spirits producer" which met with no real negative response. For ADI membership purposes that served as the de facto definition for the last few years. But the proliferation of small distilleries which use the term "craft" and as Melkon points out, presents the risk for the true Craft Distillers of dilution of the meaning of the term and so perhaps it is time to bite the bullet and actually use "craft" in a definition. Unfortunately, also as Melkon notes, ADI is not a qualified agency and can not simply announce to the industry ADI (Who? by the way) has defined the terms, here they are. The definition of the industry is the right and responsibility of the industry members and that means those with DSP permits and producing spirits and paying taxes. This is precisely the reason why, regardless of ADI and its membership, there needs be a true industry association owned and operated by its membership, which members are actually licensed distillers with real professional, regulatory, taxpaying, educational concerns. A private corporation which is a club for anyone with any interest in distilling at all, licensed or not, and subject to the owner's unilateral decisions is not. The AMERICAN CRAFT DISTILLERS ASSOCIATION ("ACDA") is engaged in a variety of undertakings which will have a direct impact on American small distilleries in such matters as: Excise Tax reduction, International Export, Professional education for member DSPs. It is currently organizing its first election of officers and a Board of Directors made up of licensed DSP operators which will direct the work of the ACDA. Both ADI and ACDA are good for the craft spirits industry for different reasons, both valid. But let's not confuse their mandates. ADI has helped to successfully launch the craft distilling movement, and continues to do so. It is time now to recognize the differences between the roles of ADI and ACDA and set aside any discussion of competition between the two organizations. I must agree with Melkon that the definitions ADI puts forward are inappropriate and should not be agreed by the community. ADI can again help the craft distilling industry and in particular those who invest substantial money and time in acquiring permits and equipment and are engaged in a startup, by acknowledging ACDA as the legitimate Industry Association for Craft Distilling in America.

Here's the New York Law on the matter of owning distilling devices: Stills and distilling apparatus. Any person who shall manufacture any illicit alcoholic beverage or who, not being duly licensed as a distiller under the provisions of the alcoholic beverage control law, shall own, operate, possesses or have under his control any still or distilling apparatus is guilty of a felony. "Still" or " distilling apparatus" shall mean any apparatus designed, intended, actually used, or capable of being used for or in connection with the separating of alcoholic or spirituous vapors, or alcohol or spirituous solutions, or alcohol or spirits, from alcohol or spirituous solutions or mixtures, but shall not include stills used for laboratory purposes or stills used for distilling water or other nonalcoholic materials where the cubic capacity of such stills is one gallon or less.

The question of what is "good" and what is not is too subjective to rely on the "type" name as a guide to flavor and appeal. The test is if an experimenting consumer is inclined to buy it a second time. To the questions about age, filtering, barrel type, char level, grain source, brix, and every other question posed at tastings by aficionados in the "stump the distiller" Q&A session, I usually respond, "Do you like it?"

The meeting, indeed, is not about whiskey. It is however about the issues to be dealt with in the TRANSATLANTIC TRADE AND INVESTMENT PARTNERSHIP agreement. We have been invited to offer comments from the craft distilling industry with regards to considerations in that agreement pertaining top artificial trade barriers and such. R

The US TRADE REPRESENTATIVE ("USTR") office announced there will be public hearings on the issue of the artificial trade barrier against American whiskeys in EU law on May 29th and 30th in Washington DC. I will be going to testify on behalf of American Craft producers. You can make your comments on line for the record. The announcement of the Public Comment period and details are at the site: http://www.gpo.gov/fdsys/pkg/FR-2013-04-01/pdf/2013-07430.pdf.

NEW YORK CRAFT DISTILLERS GUILD MEETING MINUTES Harvest Spirits, Valatie, NY December 12, 2012 Attendees Guild members: Albany Distilling Company, Kings County, Harvest Spirits, Tuthilltown Sprits, Coppersea, Industry City. Also present: Dwight Grimm Minutes 1. Call to order 2. Summit on Craft Beverage [Ralph Erenzo] § Reviewed results from the summit. Governor made some recommendations for immediate action, including changing the interpretation of the SLA’s licensing: § If you have a Farm Distillers License (FDL), you can sell spirits but you cannot sell other goods. As a result of the summit, this will change 4/12/2013. § If you have a Farm Winery License (FWL), you can sell anything sold on the farm including food. § Members were encouraged to review the Farm Brewery Law (appended to minutes). The FWL will ultimately have the same privileges of the Farm Brewery Law but it will take some time to get there. § Benefits to the FDL amendments include lower fees, ability to sell other distillers’ goods, permission sell at farmers markets, and provides framework to operate a satellite shop. § It was noted that even if a distiller has an FDL, only NYS branded goods can be sold at farmers markets. Defined as 70% NYS-based components. § Ralph requested that Guild members submit recommendations directly to him (ralph@tuthilltown.com), if anyone has ideas on how to draw appropriate distinctions. It was noted that sometimes vagueness can be a benefit - you will gain and loose something by making the distinction clear. 3. OSHA safety course [Nicole Austin] § Reviewed the purpose and timing of the OSHA certification training. § Proposal: as a group, hire a safety consultant together and complete the 10 hour training. Benefits include: makes Guild members look proactive on safety; will receive an official card that is recognized by insurance; will save money if it is completed as a group; could be a potential PR opportunity § Training is 10 hours but has to be a minimum of 2 days and a max of 6 months. So, they can be split apart by month or completed in 2 days) § First proposal was to complete in back-to-back two days. Proposed dates 1/7/2013-1/8/2013 at the restaurant next to Tuthilltown. § The question was raised whether the certification last in perpetuity or if it required renewal. It was explained that once you receive it, it is good forever but you can get additional (ad-on) trainings like OSHA 30, OSHA 40, manufacturers, etc. § The first half of the training is standard but the second half is industry specific. Could get a good trainer for the second day if it is split up because he is unavailable on January 7th or 8th. Could get him if the date was moved. § It was noted that if you qualify as a farm under ag and markets, then you do not need to qualify for OSHA. But, it is still a good idea because could get press out of it—shows that the group is concerned about safety. Also looks good to builders inspectors. § It was noted that it could be a portrayed as a double edge sword in the media, e.g. raise concerns over safety. There was some disagreement to this point, noting that OSHA wants a good faith effort, taking a responsible approach § Guild decision – Split training into 2 days and tack it onto to a Guild meeting. § OSHA training: 1st day – January 7, 2nd day – March meeting 4. Proposal from NYS Wine Council [Ralph Erenzo] § The group reviewed the proposal submitted by the Governor’s office. § Everyone agreed that the position of NYS Spirits Ambassadors was an interesting concept but that the requirement that the Ambassador be a mixologist is not consistent/representative of the group. § Some of the NYS-specific events look good, but things like the gala seemed out of character for farm distillers. § Ralph posed to the group: How would you spend $1M? Remember, the proposal was crafted by an agency and this group knows what works best for farm distillers. The money has not been allocated yet. Guild task: Put together a short proposal on how you want to spend the dollars and send it to Ralph. Note that these dollars can only be used on advertising and promotions. Examples of uses: § Perhaps $150K should be used to study how the funds should be spent? § Highway signs, “Distillery this way” § The Distillery Trail § A virtual distillery trail where people could click on the links and purchase products § Distilleries’ trade website § Instead of an ambassador, hire a coordinator to take care of coordinating events and such. Let the distillers handle the pitching because they know it first hand. Could consider hiring someone within an agency at a lower cost than an independent consultant. § Ambassador could serve as the public face, such as a well known journalist in wine and spirits § It was discussed that maybe the Guild should put on its own events next year. The State will match dollar for dollar, but if people do not/can not put up funds this year, perhaps it is best to ride out the state dollars for a year. § Everyone agreed that it should be a coalition and should not come out of the wine council. 5. Hudson Mercantile Run [Ralph Erenzo] § Tuthilltown is putting on an event next fall § Albany to NYC, stopping along the way to pick up goods and then end up in NYC at a farmers market event. Will pick up wine, beer and spirits. § Tourism industry is involved § There is also another idea on the table for a flotilla (Halfmoon and other boats) to go from NYC in Albany but Ralph recommended that the kick off be in Albany and end in NYC in order to tie the two events together. § The Governor and Bloomberg will be involved. § Ralph will provide more information as it becomes available. 6. Legislative matters § Got word form Brian McCkenzie that Congressman Reed will submit tax bill, HR 777 – but unsure of new bill number § Has not been modified too much except: applied 80% discount of first 60K gallons to anyone’s production, not just craft distillers. Based on proof gallons. § Congress is going to raise taxes on excises tax (DISCUS?) but even a 3x increase would not match the significant reduction. § Once it is introduced, you should call everyone you know to get this passed. Stay tuned. § May want to draft a stock letter of support using one of those sites that submits letters on behalf of individuals. § Ralph met with NYS Assembly Ways and Means and was eager to submit bill language. Will format it in a way that is understandable. § Class A license versus Class A1 license – how do you define craft distiller? § For example – label registration fee. Trying to make it a benefit of farm distillery to only have to register once. § Sourcing: § The issue of non-NYS-based sugars (beet and cane) were raised. Sourcing is important because it has to come from NYS but don’t always know source from distributer. Bigger entities know and often grow their own product. § Benefits should be based on 1) size and 2) source § State has strong inclination to support agriculture – but we also need to let them know we are small business. § There is no infrastructure for some things – even though want to buy from NYS. § Another point was raised is that point/goal is to keep it in NYS. Example: For Valatie, if competition comes in from a product featuring apples from china priced at $10 less on the shelf, it will be difficult to compete. § One recommendation was that the law should say - if you can get in it in NYS, you must, but beyond that you have to get product where it is available. § The group was reminded that the purpose of the farm distiller license was to help grow the farms, not the distilleries. Although it is great that there are more distilleries, may need to use the small business angle to work this issue. § If NYS wants to promote the farms, then we need to support them through the steps – and support NYS coopers, distributers, distillers, etc. § There is no one to assist distillers find farms in NYS. There is a need for an “agricultural liaison” that can connect the farms to the distilleries to get the product. § The Carey Center for Global Good in Rensselaerville got a small grant to do that. They brought it in farmers and farm brewers in Rensselaerville. § Guild proposal: should the Guild have an event that connects distillers to the farmers and farmers can pitch us their products and vice versa? Nicole will reach out to the Carey Center (Rebecca). § Discussed NOFA event in Saratoga for NY sustainable farmers. Event is in January/February. 7. SME Conference, DC [Ralph Erenzo] § Ralph went to DC for a conference for small and medium enterprise groups – to discuss exporting § Raised the issue of standards in whiskey and how it is difficult to export. Able to speak directly to EU. There is a tacit agreement with Tax and Trade Bureau (TTB), which means things are not progressing quickly. § DISCUS’ opinion: wants to see standards of identities cleaned up in US. But it is not an international issue, it is only US. How do we define whiskey? “Fermented mash of grain” is the basic definition. § Other countries can sell products in the US that do not meet our standards but we cannot export to countries, which is a problem for US distillers. 8. ADI survey result [Coppersea] § NYS distilleries production increased by about 80% § Still less than .5% of US distillers are craft distillers. Lots of growth potential. But farm distillers are starting to get the attention of the big guys. § Note: the state tax is not worth fighting right now because state has no money and the Legislature is a mess. The real focus should be on the feds – the federal excise tax break is huge. Next meeting: January 7, 2013 at Tuthilltown Spirits (OSHA training to follow)

Edwin, there may be specific language attached to the definition of "brandywine" in EU code. In EU law if you want to call it "whisky" or "whiskey" it must be the distilled spirit of a fermented mash of grain and must be aged in oak for minimum three years. Pretty straightforward for Europeans. On the topic of "American Whiskey" vs another "type" name for whiskey produced under American law, I'm not sure if I agree that it is in any way a slight or proprietary to the our cousins to the South or North. The Canadians produce "Canadian Whisky" a type accepted in law in the US and EU. When anyone asks me what nationality I am, I say "American." If someone asks the same question of someone from South America, they would not respond "I'm South American," or the Spanish equivilant. They would say they are Peruvian, or Chilean, or Columbian. So if we want to be totally politically correct yes, we can get specific to "North American" "South American", but it seems silly to suddenly take up phrasing not used in practical everyday parlance. For me, the favored phrase is "American Whiskey", though any text which allows me to sell my goods in the EU under their rightful type name may be acceptable. The goal is full acceptance by the EU of American Whiskey as a legitimate "whiskey", same as we recognize Scotch Whiskey as a legitimate whisky though it is not made the same way as our own whiskeys. Imagine if we said to the Scotch whisky producers "We recognize Scotch Whisky as a specific type of whisky made in Scotland under Scotch law; it must meet US Standards of Identity for storage in new charred oak barrels." Think that would fly? This issue has been brought before DISCUS, which responds that the issue was taken up by DISCUS about a decade ago and no progress was made then, and so they believe no progress can be made now so it is not worth pursuing and may draw the ire of the SWA. My response is that ten years ago there were the big producer members of DISCUS and about a dozen craft producers in the US, now there are the small number of big producers greatly outnumbered by the 400 or so craft distillers and the world is changed. I repeat, the Scotch Whisky Association does a grand job at serving its Scotch whisky producing members and the integrity of Scotch Whisky worldwide. But the legitimate Bourbon whiskey producers of the US are not threatening that integrity in any way. And this attitude is not a reflection of any Nationalistic tendencies on my part, it is simply I'd like to call my "Whiskey" by its rightful name, just like every other hard working American craft distiller with legitimate young American goods.

Larry, and others interested in the NEW YORK CRAFT DISTILLERS GUILD, note: We are in the organizational mode just now. No formal "administration" or structure. But we're working on it. In the meanwhile anyone actively engaged in application process for Fed and NY permits is welcome to meetings. We ask only that you defer to permit holders during discussions and votes if we have any. You're welcome to the Dec. 12th meeting.

NEXT MEETING OF THE NY CRAFT DISTILLERS GUILD SET: AGENDA NY CRAFT DISTILLERS GUILD MEETING 12/12/12 Harvest Spirits, Valatie, NY OPENING REMARKS INTRODUCTIONS ITEMS: Governor’s Summit, overview and changes; Promotion of NY Distillers’ products with State assistance, Comments of promotional proposal by NY WINE AND GRAPE FOUNDATION, What we can do to promote small distillers in NY on our own; 2013 Season Plan; Formalization of NY CRAFT DISTILLERS GUILD; Greenmarkets, Fairs, other off premise tasting/sales; Central grain/fruit depot and malting facilities proposal; OSHA training program, Nicole Austin; Proposals for law changes, Discussion of proposal to revise Licenses section of ABC Law as pertains to distilleries; Next Meeting

We began our sales in 2006 and never did charge a "delivery" cost to customers. I'm unaware of distributors charging for "delivery" of an order to their accounts. When starting out we made it a practice to go out of our way, at our expense, to get the goods on a shelf, any shelf. Sometimes it meant driving an hour or more to deliver one or two bottles. But that's in the nature of starting out a new distillery business with "self distribution". I think tagging a "delivery charge" onto an invoice is a risk.

Charles makes a good point about "American Whiskey", that it may be problematic if the South American producers protest. I suggest a "type" be listed on the label in the same way as the "Type" must be on the label under US code, "Rye Whiskey" or "Bourbon Whiskey", perhaps a simple statement of origin would be acceptable: "Made in the US" seems sufficient.

The following from Nicole Austin regarding the OSHA review she has sought out for New York Farm Distillers: To update those that were not at the last NY Distillers Guild meeting, we discussed options to proactively address health and safety issues within our industry. We proposed gathering the group to participate in an industry-specific OSHA 10-hour training course, conducted by a certified instructor whom I have worked with previously. As long as we get at least 12 people to participate, the cost should be ~$100 per head, and you will receive a card acknowledging your completion of this course (which can be shared with your insurance company). I think this will be extremely valuable for all attendees, and especially for anyone who doesn't have previous construction or manufacturing industry experience. Apologies that we couldn't organize the OSHA 10-hr course in early November, as was originally discussed. The safety consultant I engaged wanted some additional time to understand our industry more completely and to put together an appropriate course. She proposed mid-December, but I know that's a busy time for all of us. Would January 7th & 8th work for everyone (the course is legally required to be conducted over at least two days)? We had tentatively proposed to conduct the course at the restaurant next to Tuthilltown. Please let me know if you can make it on Jan 7th & 8th and how many people from your distillery you expect to attend. Please contact me if you have any questions about the course or about Health & Safety in general. PLEASE LET NICOLE KNOW IF YOU PLAN TO ATTEND and if the dates are okay. Ralph

The Governor of NY met with producers last week in Albany at the GOVERNOR'S SUMMIT ON WINE, BEER & SPIRITS. He listened to comments on exactly this issue and by end of day he returned to the conference and announced a change in NY policy regarding shared facilities. The following link is the Advisory of the SLA announcing the change: Advisory 2012-10 - Issuance of Multiple Manufacturing Licenses for the Same Location

In response to Charles' question, I think we would not want to change the "title" line on our brand label. It is HUDSON MANHATTAN RYE WHISKEY for instance, not HUDSON MANHATTAN RYE AMERICAN WHISKEY. Requiring the insertion of "American" in the brand name would throw off the graphic image we designed. It would be my preference not to change the brand name, but to indicate somewhere on the label the country of origin: "American Whiskey" in some minimum type size that is reasonable. It is, however, likely that we would have to modify our labels to meet foreign "warning" standards. In the EU for instance it's the circle with a slash through it over the silhouette of a pregnant woman rather than our GOVERNMENT WARNING text. But the cost of that slight modification is small and the main thing is the identification of the brand "look", the logo, and the type of product. We do that for all our exports and no big deal, but changing the name of our brand from HUDSON NEW YORK CORN WHISKEY to HUDSON NEW YORK CORN and eliminating the word "whiskey" from our labels is what I would describe as forced misrepresentation, enforced by competing EU producers. If the SLA or the EU want to "protect the integrity" of Scotch or Irish Whisky that's their business. But we're not making Scotch or Irish Whisky, we're making American Whiskey. R

I think Charles is on the right path. Changing the EU definition of EU whisky appears to be a losing proposition. Better if we simply have American Whiskey identified and qualified as "whiskey" and a "product of the United States", made under American law. The quid pro quo we offer the EU is the possibility of a broader exemption from the Standards of Identity so that the exemption includes all EU whiskey. This brings the Swiss, Swedes, Welsh, Spanish and French into the fray since the EU craft distillery movement is taking hold and those countries will want equal access to the American marketplace for new whiskies made by their distillers. This will be a lengthy struggle, but the payoff is access for our legal "whiskey" in the EU which is very eager for new whiskey choices and willing to pay for them to be imported to EU. R

Just off conference call with representatives of the Federal and New York state international Trade offices on the topic of petitioning the EU to amend its alcohol law to recognize "AMERICAN WHISKEY" as a class of spirits unique to the US made under US law. This change is only asking for quid pro quo with Scotch and Irish whiskies and other recognized national products such as tequila and cognac. The general conclusion of the discussion was that this is worth pursuing in the interests of opening a wider market for new small US spirits producers in the EU which is very thirsty for NEW American spirits. The opinion of the US Trade Representative office was that this would take substantial lobbying among the American micro distillers with their State Federal elected officials, the TTB and the USTR; supported by pressure in the EU exerted by non-Scotch and non-Irish whiskey makers in the EU who are not exempt from the US Standards. The lever in the EU will be the pressure of EU distilleries for EU action and the prospect of expansion of the specific exemptions for Scotland and Ireland so that all EU micro distillers making legal spirits in their countries should be recognized as legitimate and outside our Standards of Identity as foreign products. Of course this will mean participation among US micro distillers in the effort. Your products are eagerly awaited in the EU. We have been very successful bringing our whiskeys to the EU, the response to which is unanimously "Finally, something new." So it's up to you. Contact your State's international trade office, the TTB and the US International Trade Representative offices and express your interest in export of your products to the EU as AMERICAN WHISKEY. This will take time. But that market if lucrative, and extremely limited in its selection of American spirits. Please express your opinion, preferably in support of this effort. I will forward the posts to the appropriate office as demonstration of the support by the growing number of American craft distillers for a more open EU market for their goods.

May I suggest you contact PEERLESS INSURANCE. Our agent in New York is Steve Stork, STORK INSURANCE, Penn Yan NY. Tom's observations are spot on. It is time for the small distillers to seriously consider operational procedures. It will not be long before either government agencies or insurance companies will step in with their own set of requirements, drawn up by underwriters and bankers and elected officials with no distilling operational experience. Unfortunately there are too many "seat of the pants" operations coming on line and not fully cognizant of the inherent risk of dealing with alcohol.

NY FARM DISTILLERS, here is text included in the bill just signed into law which pertains to your ability to sample and sell NY Branded Spirits at Farmers' Markets, State and County Fairs, the following are the pertinent sections, NOTE THE EFFECTIVE DATE IS APRIL 1, 2013 on all these changes: * 6. Any person having applied for and received a license as a farm distillery under this section may conduct consumer tastings of liquor pursuant to rules or regulations promulgated by the liquor authority, and subject to the limitations set forth in paragraph c of subdivision two-c of this section at the state fair, at recognized county fairs and at farmers' markets operated on a not-for-profit basis. * NB Effective April 1, 2013 The other pertinent amendments' text: * A licensed farm distillery may conduct upon the licensed premises, or at approved locations as permitted in subdivision six of this section, consumer tastings of liquor manufactured by the licensee and from no more than three other class A, A-1, B, B-1, C or D distilleries, subject to the following limitations: * NB Effective April 1, 2013 (iv) A licensed farm distillery may apply to the liquor authority for a permit to sell liquor in a sealed container for off-premises consumption at the state fair, at recognized county fairs and at farmers' markets operated on a not-for-profit basis. As a condition of the permit a representative from the distillery must be present at the time of sale. * NB Effective April 1, 2013

In NY State, in order to dispose of waste on the land, it must be proven to be relatively benign and there must be a demonstrated "agronomic need" the waste will address in the soil. If you are near protected areas, sanctuaries, waterways, lake; any of it under DEC control and regulation, there will be regulations must be met. I can't speak for Alabama but in NY a "farm operation" is exempt from many of the various codes restricting uses in controlled areas, also a Farm in NY is often outside of typical local zoning requirements as well. But I agree with Double G, find an attorney with land use experience to look at the law in your State BEFORE you invest any large amounts in your undertaking. Perhaps the local chapter of THE FARM BUREAU may have some perspective on this or an attorney with qualified experience in such matters. And READ THE LAW that covers both distillery operations and agriculture in Alabama to familiarize yourself with the texts. Be careful, waste disposal is one of the most critical issues with rural distilleries and breweries and wineries not on municipal waste and water systems.

We're fortunate, our insurance coverage is substantial. Others take note: check your policies and speak with a Certified Public Adjuster (a good adjuster working for your interests is worth every penny). Our cupolas were mechanically opened and closed. But all further mechanical or power units will be "explosion proof" devices. This is a lot to ask of a startup Farm or Craft distillery, it is a big expense to install fire and explosion proof devices and lighting. But there are other ways to design systems to exchange air and ventilate a space which would keep the vapor isolated from the devices, some creative design required, but it's possible. A warning, our still manufacturer sent us lights to mount on the inspection portholes on our column which were quartz iodine, very hot. Brian put them aside, replacing them with very low temperature light sources; but we are confused why the hottest bulbs possible were sent by the manufacturer in the first place. Please everyone take these into consideration when you plan your still configuration. Most importantly, we are confirmed in the value of our efforts to maintain a good relationship with local officials, fire department and the State Liquor Authority, all of whom have been supportive. At a meeting last Friday of the NEW YORK CRAFT DISTILLERS GUILD at CATSKILL DISTILLING COMPANY, just a stone's throw from the site of the 1969 WOODSTOCK FESTIVAL by the way, everyone was agreed that each should do a complete safety survey and begin work on a "Best Practices" document for craft distilleries in general and each site in particular. It was agreed that this would be a final work which would be adopted individually by independent operators but not as a formal document presented as a qualified "guidelines", which would unfortunately drag members of the informally organized Guild into a liability loop we are unprepared for at this time. Safety was a large part of the discussions. And all were agreed that it is probable that most craft distilleries are operating at about 3 or 4 on a scale of 10 (10 being the safest possible operation), and some were convinced that number was probably more accurately around 2 on a scale of 10. Not as a result of carelessness, but more because of a "we do the best we can with what we have at our disposal" mentality that is part of the entrepreneurial gestalt. And it ain't cheap as we all know. Equipment, electrical, gas, building; all these are covered already in regulations already governing building code and electrical installations and inspections. It's the day to day operation that is the low or no cost part of your distillery which you can effect right away. We strongly suggest writing down your safety protocols, logging anything out of the ordinary and constant vigilance. Upon the suggestion I received from one Town Official who faced a storm of protests during the last Town Board meeting from nearby residents, we are taking on the task of educating our local elected officials, fire department and building inspector on the laws which permit and regulate our operation, the inspections we undergo and the renovation plans. This effort is more in ensuring that any official who must field questions as part of their responsibilities are directed to the correct statutes and law which govern our operation and demonstrate our compliance, not only with NYS Alcohol Beverage Control Law but with fire and building codes as well. Nicole Austin from KINGS COUNTY DISTILLING, who has substantial experience in the installation of co-generation plants, therefore the most experienced in safety systems and overview, will be exploring some of the training opportunities available to distillers from qualified organizations.

It still surprises me, I don't know why it should by now, at my partner's ability to "get 'er done". When I arrived yesterday at the distillery a crane was sitting in our parking lot. Couple hours later I saw it leave through my office window. I went to see what had been accomplished and found all three stills, columns and condensers and all associated stainless parts laid out in the parking lot. This morning I arrive and it's all moved into our newly built extension, the crews upstairs are ripping up floor. The crew downstairs up on scaffolds installing insulation in the roof. Brian's plan is a "three hour rated wall creating a 'Vapor Zone' where the stills will go and all vapor will be contained and exhausted through roof cupolas equipped with air exchange fireproof system. He discovered some damage to a column and continues to examine the rest of the equipment. Our entire staff working to keep us on an even keel while we fully assess damage and undertake the reconstruction. One thing I wanted to mention. Someone had written to me that it was unlikely the alcohol rose into the cupolas since alcohol vapor is heavier than air and would sink. The comment did not take into account the heat of the ethanol laden vapor that rushes out of a still through a breach very hot and immediately rises to the roof. We agree with the Fire Marshall, the cupolas saved the building. R