The Price of Craft Spirits in Context

[jharner1]

There seems to be a good amount of griping among 'connoisseurs' about the prices of craft spirits relative to more traditional brands (in the bourbon and whiskey market, in particular). I don't see this same type of argument with craft beer, wine and cider, though. Partly that's because, in those industries, the available product wasn't of great quality to begin with, so people were more likely to pay for a more flavorful, higher quality product. With spirits, that may not hold to the same degree. But, in many cases, craft breweries, wineries and cideries are taxed differently than large producers, which leads to less of a price bump. And in some states, the cost of a license are less for breweries, wineries and cideries is less than a license for distilling.

Ignoring the markups on products by non-distiller producers and some of the bigger distilling companies trying to capture the momentum of "craft" and "small batch" products, should that be part of the message about selling craft spirits? That, the prices are higher for you, the consumer, because our government treats us differently than our other craft cohorts?

[Natrat]

Works both ways, sometimes. We get the same markup as everyone else in this control state. Recently, they were selling PVW 23 year for just over $212 a bottle, as opposed to the $2000+ it sells for on the web and in other markets.

Personally, I try not to bring attention to the idea that I might go through more pain, taxes, regulation, and municipal grief than other, more recognized businesses. I feel that I might be perceived as "whining." I knew what the landscape looked like when I joined this.

My message to the public remains "Look at this! Isn't this cool? Check out my steampunk machine where I make LOCAL AWESOME BOOZE that YOU CAN BUY RIGHT NOW!!!"

Now, if someone who has a bit of knowledge asks an intelligent question, sure, they will get an intelligent answer that may or may not point out some of the hoops I had to jump through to do this kind of thing. And somewhere, I'm sure there is another craft industry that has it tougher than me. Haven't seen any artisanal meth yet, though.

Just be happy you don't grow medicinal marijuana.

[schnit]

I see it a number of ways. The biggest being "small" distilleries who spent a lot of money without the intent of moving a lot of cases. The distillery then prices their bottles based upon the cost of doing business more so than the actual quality of their product.

[mendodistilling]

Well, the main problem is you are almost 90 years late starting your distillery and now you have to build to suit the economy and knowledge base without your grandfathers (x) generation farm to support your new idea and endeavor. The bottom line is, like Natrat said, you know what you got into, adjust your business plan accordingly. You can't out make makers mark as Dave Pickerall said in my siebel class.

[mendodistilling]

The good news, now that you have whiskey, you have buyers, in the 80s, they had whiskey, but no buyers. So most ages are not intentional, no one wants to age for a generation when they can sell in 3-7 years. They do it bc they make so damned much that is the new business model when the market saturates. Bet long. Seems like it worked until recently.

[mendodistilling]

I was talking to Hubert Germain-Robin and he said something as a joke but it had merit. He said, I started the distillery but my grandchildren will be wealthy, my eaux de vies will long out live me.