The Microdistillers Handbook 09.2020
The Microdistillers Handbook 09.2020
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THE
MICRODISTILLERS'
avin.smith HANDBOOK
First published in 2018 by
Paragraph Publishing, 6 Woolgate Court,
St Benedicts Street, Norwich, Norfolk, NR2 4AP
www.paragraph.co.uk
ISBN 978-1-9998408-3-9
Acatalogue record for this book is available on request from the British Library.
All rights reserved. No part of this publication may be reproduced, stored in
a retrieval system or transmitted in any form, or by any means, electronic or
mechanical, including photocopying and recording, or by any information storage
and retrieval system except as may be expressly permitted by the UK 1988
Copyright, Designs and Patents Act and the USA 1976 Copyright Act or in writing
from the publisher. Requests for permission should be addressed to Paragraph
Publishing, 6 Woolgate Court, St Benedicts Street, Norwich, Norfolk, NR2 4AP.
The publishers have made every effort to ensure the accuracy of information in
the book at the time of going to press. However, they cannot accept responsibility
for any loss, injury or inconvenience resulting from the use of information
contained in this guide.
Acknowledgements
The publishers would like to thank all those microdistilleries who provided
information for their case studies and to thank Gavin D. Smith for bringing this
book together. They would also like to thank Anthony Cullen and Adnams for
supplying the front cover images. (Anthony Cullen )
Contents
Foreword iv
Introduction vi
Chapter One: What is distilling?
Chapter Two: The equipment needed and setting up 26
Chapter Three: Spirits production 60
Chapter Four: Finance 82
Chapter Five: Routes to market 105
Appendices 125
Directory of Services and Supplies 147
Index 165
CASE STUDIES
Spirit of Yorkshire
Cotswolds Distillery 15
GlenWyvis 35
DYFI Distillery 40
Winchester Distillery 44
Organic Distilleries LTD 52
Pickering’s Gin Distillery 66
Adnams 76
Fulton 96
Allen Associates 102
East London Liquor Company 412
Ballindalloch Distillery 118
The Microdistillers’ Handbook
Foreword
hen Adnams began distilling 10 years ago, the
industry was different. There were far fewer
distilleries and distillers, but those I met were
passionate, friendly and knowledgeable and
I can now count them amongst my friends. Much like the
brewing industry, people were happy to discuss issues and
share ideas — very refreshing for someone from an unrelated
industry. Everything was very new and we learnt quickly,
producing within a short time a varied portfolio of interesting
Spirits from absinthes to several liqueurs which made the
bottling machine very sticky! Our USP was ‘grain to glass’ and
our unique vodkas were the base for our gins. Grain to glass,
doing the whole process from start to finish, which although
common for every whisky distillery, was then and is still to
this day, very rare in the gin world and something we are really
proud of. It’s also more sustainable which is really important
to us.
Over the past decade, we've seen the gin boom take hold,
and the number of distilleries has expanded exponentially.
The number of great gins from the UK and from countries
where gin was not even on the radar 10 years ago, has been eye
opening. I am still amazed when attending gin festivals, of all
the brands that I’ve never come across. The gin-buying public
has also changed, gin is now cool (at the time of writing!) with
clubs, tours, magazines and an event almost every weekend.
Gin has benefitted from the social media explosion and many
bloggers have turned their passions into careers. Gin tourism
is now a thing. We had more than 22,000 people visit our
headquarters in Southwold in 2019 and we introduced a ‘make
your own gin’ which has been phenomenally successful. As
always, there has been a downside. Some dubious things being
called gin and bandwagon jumping from other industries. Gin
Yogurt anyone?
No other spirit can be made with such variety, with relatively
little setup cost. Unless your operation is grain to glass
of course.
Whisky production has been an extremely fulfilling part of
IV
Foreword
Introduction
ad you walked into even the most well-heeled of
British bars a decade ago the range of spirits on offer
would have been very different to those in the same
bar today.
Certainly, there would have been a reasonable selection of
single malt whiskies available, especially north of the border,
as the malt revolution had been gathering pace for some
time, but you would not have found any English whiskies on
the bar shelves, and as for gin and vodka, a few well-known
names would have dominated, including Gordon's, Beefeater,
Smirnoff and Absolut.
During the last ten years, however, things have changed
significantly, with a gin revolution fuelled by the apparently
insatiable appetite among consumers for cocktails. This had
led to the emergence of new large-scale brands, but also many
more that have developed almost under the radar, and even
now may have only a comparatively local following.
For this is the era of the microdistiller, and while gin may
often be his or her principal spirit of choice, vodkas, whiskies,
rums and even sambucas have also been making their
appearance. At the heart of the microdistilling revolution is a
passion for provenance, which began with food and went on
to embrace beer and then spirits. Buying local has become
the antidote to soulless supermarket shopping for brands that
could have come from almost anywhere in the world.
As is so often the case, Britain followed the USA in a pursuit
of products with a story behind them, products made by
identifiable individuals, and if those individuals happened
to be working in your neighbourhood or town then the sense
of identification was so much more palpable.
The revival of local brewing enterprises on both sides of the
Atlantic were in some ways a response to the monopolies of
companies such as AB InBev, which accounts for almost 30
per cent of all beer volumes sold globally, and in the UK, such
enterprises tapped into the desire for beers of character and
accountability that had been nurtured by the Campaign for
Real Ale (CAMRA) over more than four decades.
Vi
Introduction
Vil
The Microdistillers’ Handbook
Gavin Smith
September 2020
Vill
Chapter One
What is distilling?
The Gin craze 5
The structure of the spirit industry inthe UK 10
The history of modern microdistilling 12
Existing businesses - agriculture 18
Brewing 19
Useful organisations 21
CASE STUDIES
Spirit of Yorkshire 7
Cotswolds Distillery 15
The Microdistillers’ Handbook
Biends supreme
The story of Scotch continued to be dominated by blends through
good times and bad during the 20th century, with significant
expansion of distilling capacity taking place in the decades
following World War IL.
Single malts were something of a curiosity outside parts of the
Scottish Highlands, with one notable exception being William
Grant & Sons’ Glenfiddich, which had first been exported in 1963
and established footholds in many overseas markets where it would
dominate for decades to come.
Glenfiddich was not alone, however, in flying the flag for single
malts, with fellow Speyside brands like Glenlivet, Glen Grant
and Macallan, along with Glenmorangie, all establishing loyal
followings. Many of these distilleries were independently owned,
and investment was made in high quality marketing campaigns
and an emphasis on traditional craftsmanship and the importance
of individual single malt characteristics.
Provenance was emphasised, and for Scotch consumers,
particularly younger ones, this all provided a welcome and enticing
proposition by comparison to the constant price-cutting and
clichéd Scottish imagery associated with many blends. As a result,
What is distilling?
Respectability
Ultimately, The Gin Act was repealed in 1742, and distillers
participated in drafting new legislation enacted as The Gin Act of
1751, which imposed fair levels of excise duty, relatively high retail
prices and made licensed retailers answerable to local magistrates.
As a result, gin began to lose its reputation as ‘mother’s ruin,’
and its new-found respectability led to the emergence of highly
professional, responsible gin manufacturers, who ensured their
spirits were of good quality. Alexander Gordon established his
company to produce London Dry Gin in 1769, and Plymouth Gin
was first distilled in 1793.
During the mid-19th century, gin was given a boost by the
British in India, who adopted a local custom of using bark of the
chinchona tree as a medicine against malaria, which contained
quinine. To combat its extreme bitterness, gin, sugar and lime were
added, along with ice, creating that enduring British staple the ‘gin
and tonic.’
The development of cocktails also gave gin even greater
popularity, and the gin-based Martini is said to have been invented
around 1888. A century later, cocktails returned to fashion after a
lengthy lull, and a new generation of small-scale gin distilleries
subsequently emerged, with many also producing craft vodkas,
mirroring the increase in whisky microdistilling. Indeed, many of
the new generation of gin and vodka distilleries also have longer
term strategies to produce and market whisky.
CASE STUDY | Spirit of Yorkshire
Case study
Spirit of Yorkshire
www.spiritofyorkshire.com
The county of Yorkshire has long been renowned for its fine
ales, and in common with the rest of Britain, Yorkshire has seen
an extraordinary level of growth in beer-making enterprises during
the past few years. One of these is central of the creation of the
county’s first single malt whisky distillery.
Wold Top Brewery was established in 2003 by arable farmers
Tom and Gill Mellor high on the Yorkshire Wolds, close to the
North Sea, but not content with this degree of diversification, Tom
dreamed of making Yorkshire whisky.
Mellor declares that, “We started from the position that we
had 15 years’ experience of making alcohol from barley,
creating an initial eight percent wash, and we were good at it. |
Whisky
Inevitably, a high percentage of the above values were generated
by a relatively small number of large-scale producers, with the
Diageo-owned Johnnie Walker portfolio of blended Scotch whiskies
accounting for volume sales of 17.4 m nine-litre cases worldwide in
2016, giving it a global Scotch whisky market share of 21.5 per cent.
Diageo boasteda total malt whisky distillation capacity of 121.3m
litres of spirit in 2016, accounting for 31.7 per cent of the market,
followed by Pernod Ricard with 17.1 per cent.
Diageo's J&B featured at number five in the best-selling Scotch
blends list, while places two and three were occupied respectively
by Pernod Ricard’s Ballantine's and Chivas Regal respectively. The
Scotch whisky industry's third largest distiller in terms of capacity,
William Grant & Sons Ltd, took fourth place with its portfolio of
blends, headed by Family Reserve.
Anotable feature of the Scotch whisky scene in recent years has
been the growth in popularity of single malts, and the share of
revenue earned by malts as a total of Scotch whisky exports has
grown to 26 per cent, hitting the 1bn mark for the first time in
2016. Grant’s Glenfiddich and Pernod Ricard’s The Glenlivet fight
it out for supremacy among the single malts, each with a market
share around the 12 per cent mark in recent years.
Gin
In terms of gin, in 2016 the UK exported a record 474m worth of
gin, up 12 per cent on the previous year, and worth 53m more than
10
What is distilling?
the previous year. In 2015 a total of 139 countries bought British gin.
Since 2012, the value of British gin exports has grown by 32 per
cent, adding the equivalent value of 227m in just five years, while
volume sales have also risen by 36 per cent. A remarkable 44 new
gin distilleries opened in 2016, with 100 new licences issued during
the past two years.
Five British-distilled gins feature in the global ‘top ten’ of brands,
headed by perennial favourite Gordon's, which sold 4.62m nine
litre cases in 2016 for owner Diageo. Second place fell to Bacardi’s
Bombay Sapphire (3.05m cases in 2016), distilled in Hampshire,
while Diageo’s dominance of the world gin markets is emphasised
by its Tanqueray brand occupying third place, selling 2.9m
cases. Both Gordon's and Tanqueray are distilled in Diageo’s vast
Cameronbridge complex in Fife, Scotland.
Diageo'’s most potent rival Pernod Ricard is not left out of the
gin equation, taking fourth place with Beefeater (2.7m cases),
distilled in London. William Grant & Sons Ltd also thrive in the
gin market, courtesy of its idiosyncratic Hendrick’s expression: a
relative newcomer being launched in 1999. It accounted for 953,361
cases in 2016, recording significant growth on its 2015 performance
of 788,823 cases.
Vodka
Only one of the world’s top ten vodkas is produced in the UK, and
the brand is also distilled in several other countries. The vodka in
question is Smirnoff, owned by Diageo, and in 2016 it sold a total
of 25.5m nine litre cases. In the UK, Smirnoff is made at Diageo’s
Cameronbridge distilling complex in Fife. The second biggest
global vodka seller is Absolut, distilled in Sweden, but owned by
Diageo's arch competitor Pernod Ricard.
It should be borne in mind that while companies such as
Diageo, Pernod Ricard, Bacardi and William Grant are key players in
the UK spirits’ industry, they also operate on a global basis, and
their British plants and brands only account for part of
their activities.
Taking an overall view of the UK spirits market, the WSTA
noted the number of distilleries in operation during 2015. Of the
233 registered UK distilleries, 119 were in Scotland, 11 in Northern
Ireland, 12 in Wales and 91 in England. That year saw the
creation of 12 new distilleries in Scotland, ten in Northern
Ireland, six in Wales and 28 in England, illustrating the dynamism
11
The Microdistillers’ Handbook
Licensing
It is often stated that London distiller Sipsmith was responsible for
12
What is distilling?
Geographical diversity
One significant effect of the growth of microdistilling in the UK is
the remarkable geographical diversity that has ensued. Distilling
now takes place from Shetland in the north to the Isle of Wight in
the south, and whisky has broken away from its traditional home of
Scotland to be produced in a range of locations south of the border,
including Devon, Norfolk, Suffolk, Gloucestershire, Yorkshire,
Cumbria and West Wales. Indeed, whisky distilling returned to
London in 2013 courtesy of The London Distillery Company for
the first time since the closure of Lea Valley distillery in 1908.
Not only is there geographical diversity, there is also a great
deal of product diversity, with the very nature of microdistilling
being ideally suited to limited editions, short runs and a
degree of experimentation not easily undertaken by larger, volume-
led operators.
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The Microdistillers’ Handbook
Gin
In terms of gins, producers tend to focus on non-core sourcing
botanicals on a local basis to create a‘USP’ So it is, for example, that
Dunnet Bay Distillers use rose root and sea buckthorn berries,
native to the Caithness coast in their Rock Rose Gin, and Tarquin
Ledbetter of Cornwall employs home-grown Devon violets in his
Tarquin’s Gin.
Apart from botanicals, some of the new wave of gin makers
have also created ‘Navy Strength’ gins, more recently the preserve
only of the Plymouth Gin brand. Navy strength gin harks back
to the days when the Royal Navy feared it was being supplied
with watered-down gin, and used to test its strength by pouring
a small quantity onto gunpowder usually stowed below decks
close to the stores. If the gunpowder failed to ignite, the gin was
less than 114 proof, or 57% ABV, the strength now attributed to
‘navy strength’ gin.
However flavoured gins have also become popular, with Sacred of
London producing Grapefruit Gin and Liquorice Gin, for example,
while J J Whitley offers a Nettle Gin. Rhubarb gin has also become
14
CASE STUDY | Cotswolds Distillery
Case study
Cotswolds Distillery
www.cotswoldsdistillery.com
figured they would provide a customer base for us, and also took
|
15
CASE STUDY | Cotswolds Distillery
16
CASE STUDY | Cotswolds Distillery
17
The Microdistillers’ Handbook
Vodka
When it comes to vodka, potatoes are employed by a number of
distillers, including Chase of Herefordshire and Arbikie in Angus,
with Chase also selling Marmalade Vodka, Lemon Marmalade Vodka,
Rhubarb Vodka and English Smoked Oak Vodka.
Meanwhile, Dunnet Bay Distillers add Holy Grass, found by the
River Thurso, to their vodka, along with an infusion of apples and
apple juice. Flavoured vodkas, like flavoured gins, are growing
in availability, with The English Spirit Distillery at Dullingham in
Cambridgeshire marketing Toffee Vodka, and Arbikie in Angus
producing a seasonal fresh strawberry vodka. More left-field is
Arbikie’s Chilli Vodka, and Pure Milk Vodka made by Black Cow
distillery in Dorset from fermented whey, which is triple distilled.
Greater diversity
Whisky, gin and vodka may be the most common produce of
British microdistillers, but some firms have cast their nets wider
in search of the more exotic. The Sacred Spirits Company makes
a variety of English vermouths, while north of the border Great
British Vermouth produces Dry Vermod Vermouth near Edinburgh.
The English Spirit Distillery also distils English Sambuca, using
anise and elderflower eau-de-vie. Additionally, the company offers
Old Salt Rum, produced at its distillery from molasses and raw sugar
cane. Another rare distiller of British rum is Dark Matter distillery
at Banchory in Aberdeenshire - the first rum distillery in Scotland.
That most French of spirits, pastis, has also been claimed by British
microdistillers, with Tarquin’s Cornish Pastis being an aniseed and
fennel aperitif with the addition of Cornish gorse flowers.
18
What is distilling?
Brewing
Given that the initial processes of brewing beer and distilling spirits
are almost identical, it is not surprising that several UK beer-makers
have also diversified into distillation. First to do so was Adnams,
based at Southwold in Suffolk and operating on a site where beer
has been made since 1345. In 2010 the Copper House Distillery
was created within Adnams’ Sole Bay Brewery, and ‘wash’ made
from the same locally-grown barley, wheat, rye or oats is used in
the production of gin, vodka and whisky as is used to make beers
such as Ghost Ship pale ale and Broadside premium bitter.
Another long-established brewer, St Austell of Cornwall, founded
19
The Microdistillers’ Handbook
20
What is distilling?
Distillers
Inevitably, the world of distilling has mirrored that of brewing, with
Britain's largest independent, family-owneddistiller William Grant
-
& Sons Ltd being first to invest in microdistilling when it acquired
the Hudson whiskey brands of New York State’s Tuthilltown Spirits
in 2010. Such was the success of its foray into craft distillation that
2017 saw Grant's buy up the distillery itself.
Fellow independent Scotch whisky-maker Ian Macleod Distillers
purchased Spencerfield Spirits during 2016, principally in order to
own the increasingly successful and award-winning small-batch
Edinburgh Gin brand, established by former whisky industry executive
Alex Nicol and his wife Jane in 2010.
Altogether more international was the 2016 acquisition of London's
Sipsmith by the world’s third largest distiller, Beam Suntory Inc of the
USA for a price in the region of 50m. Beam Suntory is responsible for
such leading brands as Jim Beam, Laphroaig and Bowmore whiskies,
Courvoisier cognac and Gilbey’s Ggn, and Sipsmith had demonstrated
significant global growth in terms of sales since its establishment in
2009. The firm was exporting 30 per cent ofits output at the time ofits
sale to Beam Suntory, with the US being a particularly strong market.
It is not only British small-scale distilling ventures that are being
bought up by major companies, as Pernod Ricard — second only to
Diageo in the international drinks business — acquired German dry
gin brand Monkey 47 early in 2016.
Useful organisations
As microdistilling enterprises have proliferated, so a number of
organisations have been created to help distillers make the best
decisions possible, offering advice and keeping them up to date with
legislative changes. Principal among these is:
21
The Microdistillers’ Handbook
22
What is distilling?
23
The Microdistillers’ Handbook
24
What is distilling?
25
The Microdistillers’ Handbook
Chapter Two
The equipment needed
and setting up
Definitions 27
Consultants 38
Training 39
Equipping your distillery 43
Manufacturers 49
Raw materials 56
CASE STUDIES
GlenWyvis 35
DYFI Distillery 40
Winchester Distillery 44
Organic Distilleries LTD 52
26
The equipment needed and setting up
Definitions
The Scotch Whisky Regulations 2009 (SWR) set out precise
definitions of the different types of Scotch whisky, and the wording
that is legally acceptable in association with them.
e 2.1
Regulation 3 (2) contains the definitions of the different
categories of Scotch Whisky: Single Malt, Single Grain, Blended
Scotch Whisky, Blended Malt Scotch Whisky, Blended Grain
Scotch Whisky.
2.2 The two basic types of Scotch Whisky, from which all blends
are made, are Single Malt Scotch Whisky and Single Grain
Scotch Whisky. In practice there is no change in the way that
Single Malt Scotch Whisky and Single Grain Scotch Whisky
must be produced.
2.3 Single Malt Scotch Whisky means a Scotch whisky produced
from only water and malted barley at a single distillery by batch
distillation in pot stills.
e 2.4 Single Grain Scotch Whisky means a Scotch whisky distilled
at a single distillery but which, in addition to water and
unmalted barley, may also be produced from whole grains or
other malted or unmalted cereal. Excluded from the definition
of “Single Grain Scotch Whisky” is any spirit which qualifies
as a Single Malt Scotch Whisky or as a Blended Scotch whisky.
The latter exclusion is to ensure that a Blended Scotch Whisky
produced from single malt(s) and single grain(s) distilled
at the same distillery does not also qualify as Single Grain
ScotchL\Whisky.
2.5 The definition of Blended Scotch Whisky does change the
existing law, but reflects traditional and current practice. Before
the SWR, any combination of Scotch whiskies qualified as a
Blended Scotchi\Whisky, including for example a blend of Single
Malt Scotch Whiskies. However, Blended Malt Scotch Whisky is
defined under the SWR as a combination ofone or more Single
Malt Scotch Whiskies with one or more Single Grain Scotch
Whiskies, which accords with traditional practice.
2.6 Blended Malt Scotch Whisky means a blend of two or more
single malt Scotch whiskies from different distilleries.
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The Microdistillers’ Handbook
Whisky or whiskey
(a) Whisky or whiskey is a spirit drink produced exclusively by:
(i) distillation of mash made from malted cereals with or
a
Grain spirit
(a) Grain spirit is a spirit drink produced exclusively by the
distillation of a fermented mash of whole grain cereals and
having organoleptic characteristics derived from the raw
materials used.
(b) With the exception of ‘Korn, the minimum alcoholic strength
28
The equipment needed and setting up
Brandy
(a) Brandy is a spirit drink:
(i) produced from wine spirit, whether or not wine distillate
has been added, distilled at less than 94.8 % vol., provided
that that distillate does not exceed a maximum of 50% of
the alcoholic content of the finished product,
(ii) matured for at least one year in oak receptacles or for at
least six months in oak casks with a capacity of less than
1,000 litres,
(iii) containing a quantity of volatile substances equal to
or exceeding 125 grams per hectolitre of 100% vol.
alcohol, and derived exclusively from the distillation or
redistillation of the raw materials used,
(iv) having a maximum methanol content of 200 grams per
hectolitre of 100% vol. alcohol.
(b) The minimum alcoholic strength by volume of brandy shall
be 36%.
(c) No addition of alcohol, diluted or not, shall take place.
(d) Brandy shall not be flavoured. This shall not exclude
traditional production methods.
(e) Brandy may only contain added caramel as a means to
adapt colour.
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The Microdistillers’ Handbook
Vodka
(a) Vodka is a spirit drink produced from ethyl alcohol of
agricultural origin obtained following fermentation with
yeast from either:
(i) potatoes and/or cereals, or
(ii) other agricultural raw materials,
distilled and/or rectified so that the organoleptic characteristics
of the raw materials used and by-products formed in fermentation
are selectively reduced.
This process may be followed by redistillation and/or treatment
with appropriate processing aids, including treatment with
activated charcoal to give it special organoleptic characteristics.
Maximum levels of residue for ethyl alcohol of agricultural origin
shall meet those laid down in Annex I, except that the methanol
content shall not exceed 10 grams per hectolitre of 100% vol. alcohol.
(b) The minimum alcoholic strength by volume of vodka shall
be 37.5 %.
(c) The only flavourings that may be added are natural flavouring
compounds present in distillate obtained from the fermented
raw materials. In addition, the product may be given special
organoleptic characteristics other than a predominant
flavour.
d) The description, presentation or labelling of vodka not
produced exclusively from the raw material(s) listed in
paragraph (a) (i) shall bear the indication ‘produced from ...’,
supplemented by the name of the raw material(s) used to
produce the ethyl alcohol of agricultural origin.
Flavoured vodka
(a) Flavoured vodka is vodka which has been given a predominant
flavour other than that of the raw materials.
(b) The minimum alcoholic strength by volume of flavoured
vodka shall be 37.5 %.
30
The equipment needed and setting up
Gin
(a) Gin is ajuniper-flavoured spirit drink produced by flavouring
organoleptically suitable ethyl alcohol of agricultural origin
with juniper berries.
(b) The minimum alcoholic strength by volume of gin shall
be 37.5 %.
(c) Only natural and/or nature-identical flavouring substances
as defined in Article 1 (2) (b) (i) and (ii) of Directive 88/388/EEC
and/or flavouring preparations as definedin Article 1(2)(c) of
that Directive shall be used for the production of gin so that
the taste is predominantly that of juniper.
Distilled gin
(a) Distilled gin is:
(i) a juniper-flavoured spirit drink produced exclusively
by redistilling organoleptically suitable ethyl alcohol of
agricultural origin of an appropriate quality with an initial
alcoholic strength of at least 96% vol. in stills traditionally
used for gin, in the presence of juniper berries and of
other natural botanicals provided that the juniper taste
is predominant, or
(ii) the mixture of the product of such distillation and ethyl
alcohol of agricultural origin with the same composition,
purity and alcoholic strength; natural and/or nature-
identical flavouring substances and/or flavouring
preparations as specified in category (c), above, may also
be used to flavour distilled gin.
(b) The minimum alcoholic strength by volume of distilled gin
shall be 37.5%.
(c) Gin obtained simply by adding essences or flavourings to
ethyl alcohol of agricultural origin is not distilled gin.
London gin
(a) London gin is a type of distilled gin:
(i) obtained exclusively from ethyl alcohol of agricultural
origin, with a maximum methanol content of 5 grams
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The Microdistillers’ Handbook
Pastis
(a) Pastis is an aniseed-flavoured spirit drink that also contains
natural extracts of liquorice root, which implies the presence
of the colorants known as ‘chalcones’ as well as glycyrrhizic
acid, the minimum and maximum levels of which must be
0.05 and 0.5 grams per litre respectively.
(b) The minimum alcoholic strength by volume of pastis shall
be 40%.
(c) Only natural flavouring substances and preparations as
defined in Article 1(2)(b)(i) and Article 1(2)(c) of Directive
88/388/EEC may be used in the preparation of pastis.
(d) Pastis contains less than 100 grams of sugars per litre,
expressed as invert sugar, and has aminimum and maximum
anethole level of 1.5 and 2 grams per litre respectively.
Liqueur
(a) Liqueur is a spirit drink:
(i) having a minimum sugar content, expressed as invert
sugar, of:
— 70
grams per litre for cherry liqueurs, the ethyl alcohol
of which consists exclusively of cherry spirit,
32
The equipment needed and setting up
Sloe gin
(a) Sloe gin is a liqueur produced by maceration of sloes in gin
with the possible addition of sloe juice.
(b) The minimum alcoholic strength by volume of sloe gin shall
be 25%.
(c) Only natural flavouring substances and preparations as
defined in Article 1(2)(b)(i) and Article 1(2)(c) of Directive
88/388/EEC may be used in the preparation of sloe gin.
(d) The sales denomination may be supplemented by the
term ‘liqueur’.
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The Microdistillers’ Handbook
Botanicals
Botanicals are the herbs, spices, fruits and other ingredients that
give gin its flavour. Many microdistillers have searched beyond the
traditional botanicals to find new signature aromas and flavours,
sourcing such ingredients as lemongrass, cucumber, bog myrtle,
clover and peppermint, often making a virtue of including those
that grow close to the place of distillation.
The list of ‘new age’ botanicals is very long indeed, but most of
the leading botanicals have featured in gin recipes for well over a
century. Here are the ‘top ten’ botanicals used in the production of
gin, in descending order of popularity:
Juniper: there are more than 50 species of juniper in the world,
and juniper berries give gin its defining aromas and flavours of
spruce and pine. According to EU law, gin must be predominantly
flavoured by Juniprus communis. Without juniper, there is no gin.
Coriander: coriander seeds give spicy, aromatic qualities to gin,
and coriander is present in at least 80 per cent of all gins.
e
Angelica: the third principal botanical used in gin, along with
juniper and coriander, angelica is not dissimilar to juniper, but
muskier and woodier.
Orange: bitter, Seville-style oranges are those most favoured by
gin makers, and the essential oil is contained in the peel, or rind.
e Lemon: as with
oranges, the essential oils required by
distillers are found in the lemon peel, and several leading gin
brands, including Gordon's and Beefeater, use lemon as one of
their botanicals.
Orris root: dried orris root delivers strong aromas of violets.
Liquorice: the distinctive aroma and flavour of liquorice root
was frequently used in Old Tom-style gins in the past, often to
disguise the roughness of the spirit itself.
Cardamom: cardamom seeds add a pungent, slightly peppery
character to gins, and have become increasingly popular as a gin
botanical in recent years.
Cassia: sourced from the bark ofa tree native to Southern China,
cassia is sometimes confused with cinnamon, to which it is
related. The cinnamon-like aromas and flavours of cassia are
powerful, and it must be used sparingly in order not to overpower
the gin.
e Cinnamon: derived from the Cinnamomum verum tree native
34
CASE STUDY | GlenWyvis
Case study
GlenWyvis
www.glenwyvis.com
It is often claimed that Caol lla has the finest view of any coastal
distillery in Scotland, but when it comes to inland distilleries,
GlenWyvis must surely be among the favourites for that accolade.
It is situated 550 feet above sea level on a hillside two miles north-
west of the Highland town of Dingwall, in the shadow of Ben Wyvis,
with views over Dingwall to the Cromarty Firth and the Cairngorm
Mountains in one direction and the spa town of Strathpeffer in
another. Red kites soar and sweep above the distillery while rare
breeds of sheep graze the adjoining fields. So far so traditional
and picturesque.
But GlenWyvis is innovative to say the least, being Scotland’s first
community-owned distillery, 100 per cent powered by renewable
energy. The distillery buildings themselves combine modern
architecture with traditional distillery design cues.
GlenWyvis is situated in an area rich in distilling heritage, and
in 1879 Ben Wyvis distillery was established on the outskirts of
Dingwall, being followed by the creation of Glenskiach distillery at
nearby Evanton in 1896.
Sadly, both Ben Wyvis and Glenskiach failed to survive the inter-
war years of economic and social depression, closing in 1926.
Glenskiach was subsequently demolished, but some of the Ben
Wyvis warehousing Survives, operating as a business centre.
The GlenWyvis name commemorates and celebrates the area’s
two lost distilleries, and the venture is the brainchild of founder and
managing director John McKenzie, an ex-Army Air Corps helicopter
pilot, farmer and green energy advocate.
As third-generation distillery worker and business development
manager Mike Fraser, explains, “John was not a great whisky
drinker, but as a helicopter pilot, latterly he flew private clients
to visit distilleries all over Scotland, and the idea of adding a new
distillery into an area with so much whisky history appealed to him.
He was looking to create an environmentally-friendly venture that
would benefit the local community.”
A crowd-funding campaign was inaugurated in April 2016, and
Fraser says that, “We were given 77 days to raise 1.5m and
actually raised 2.6m in that time. So, we decided to build the
35
CASE STUDY | GlenWyvis
distillery a bit bigger than we’d originally planned! Sixty per cent
of the 2,200 members came from the local IV postcode area, and
the rest from a total of 31 different countries.”
What had been established as GlenWyvis Distillery Ltd now
became an ‘Industrial and Provident Society (IPS),’ essentially a
co-operative. John McKenzie leased the four plots of land at Upper
Dochcarty required for construction of the distillery for nominal
a
the third year of production, and in theory, by year eight all investors
will have got their money back and received an annual dividend,
with some future profits destined to be ploughed back into the
local area.
In line with Jonn McKenzie’s ambition to create a notably ‘green’
distillery, all electricity is provided by three sources, namely a 12kw
turbine - owed by McKenzie, who takes draff as payment for its use
-a 12kw hydro dam and 46kw of solar panels. A 550kw Binder bio-
mass steam boiler runs on woodchips sourced from local farms.
The distillery owns a Vauxhall electric car and plans to use an
electric bus to transport visitors from Dingwall to the distillery when
a visitor centre opens in future.
‘Buying local’ is an important part of the overall ethos, and Mike
explains that, “We use Laureate barley from the Highland Grain
Co-operative, and many of the farmers who are involved in that are
investors here. Bairds Malt in Inverness takes 40 tonnes from them
at a time and malts it. We get 28 tonnes back, and it’s guaranteed
100 per cent Highland Grain. The barley is mainly grown on the
Black Isle.”
GlenWyvis boasts a staff of four, with just one production
operative, who also happens to be the distillery manager. Duncan
Tait previously worked for Diageo for 27 and a half years, and he
36
CASE STUDY | GlenWyvis
that are ready then will probably release them quite young as
|
37
The Microdistillers’ Handbook
Consultants
Whatever your level of distilling knowledge, the involvement of an
experienced consultant can ensure the creation of a cost-effective,
efficient and reliable distilling business. The financial outlay
involved in securing their services is usually money well spent.
Organic Distilleries
www.organicdistilleries.co.uk
Organic Distilleries is headed up by architect Gareth Roberts, and
is based at Helensburgh, in the Argyll & Bute area of Scotland.
The company describes itself as “...an affiliation of experienced
consultants,” and services provided include business planning,
distillery build design and marketing expertise, see page 7.
38
The equipment needed and setting up
Techni-K Consulting
www.techni-k.co.uk
All start-up distillers who plan to sell their spirit commercially
must by law have aHACCP (Hazard Analysis and Critical
Control Points) plan that meets UK legislation standard. Techni-K
Consulting (based in Derbyshire) has produced a specific
Distillery HACCP and as the company explains, “Our Distillery
HACCP has been designed to provide all the necessary
documentation you need, so all you need to do is amend
it to the specific processing of your product following our
detailed guidelines using our step-by-step workbook. What you
will be relieved to know is that it’s 95 per cent completed for
you already!”
Langley Distillery
www.langleydistillery.co.uk
Langley distillery in Hertfordshire was established in 1920 to
produce gin, and now specialises in creating London Dry Gin for
arange of customers. Additionally, Langley supplies neutral grain
spirit (NGS) and bespoke botanicals for clients wishing to make
their own gins, along with grain, molasses, rye and barley spirit,
plus vodka, whisky, brandy and rum - all available in quantities
from five litres to 1,000 litres, and full/ part tankers.
Training
The use of consulting professionals is one way of ensuring
you start out with the optimum distilling potential, but
expanded personal knowledge and ongoing education can also
be invaluable.
39
CASE STUDY | DYFI Distillery
Case study
DYFI Distillery
www.dyfidistillery.com
still judge at the Decanter World Wine Awards, and in 2015 was very
honoured to be made a Commander of the Order of Prince Henry by
the Portuguese President for services to that countries’ wine industry.
“My brother Pete moved to Dyfi after leaving school to study
Environmental Biology and forgot to leave. He has foraged, kept bees
and hill farmed in this valley ever since. When we were discussing
ideas to produce something in this special place with genuine
provenance, a foraged-led gin seemed the natural thing to do.
40
CASE STUDY [| DYFI Distillery
the producer brings their own ideas to the table. I’m sure Simon and
Debbie at Dare! used a lot of very naughty words whenever came |
off the phone to them but were always patient and meticulous. |
still have my original drawing of our snail and bee logo (to represent
Hibernation and Pollination).”
Additionally, the distillery makes seasonal Pollination and
Hibernation expressions. As Danny explains, “On a canvas of carefully
selected classic gin botanicals, we ‘paint’ the flavours only Dyfi can
combine, including wild flowers, aromatic leaves, fruits and conifer
tips. The botanicals we forage for Hibernation Gin are influenced by
the later season and include wild crab apples, blackberries, bilberries
and lingonberries.”
Hibernation has the distinction of being the only gin to be aged
in a fully-seasoned white port barrel, and Danny says that, “We feel
that barrel ageing should always be done to improve something,
rather than just change it for its own sake, and this should mean
creating a unique formulation. For example, our botanical bill for
this gin includes wild crab apples, which in the new make distillate
gives a bit of harshness, but after the ageing actually adds to the
freshness of the finished gin, as well as marrying with the barrel
character wonderfully.
“We released a fourth gin in October 2019 after two years
of development, called Navigation Gin. Bottled at 57% ABY, it
incorporates a distilled umami-rich forged seaweed blend, and is
then aged in a very old vintage Madeira barrel to create another layer.
41
The Microdistillers’ Handbook
42
The equipment needed and setting up
BrewLab
www.brewlab.co.uk
BrewLab Ltd is based in Sunderland, Tyne & Wear, and as its
name suggests, the principal focus is on brewing. However, the
organisation has now developed a three-day Start Up Distilling
Course which is proving popular with would-be microdistillers.
According to BrewLab, “We find it best to learn from professionals
within the industry, which is why we bring in working distillers and
specialists to take you through the different stages of the distillery
process and give practical advice on start-up issues.
“Not only do we offer specially developed facilities but the course
also gives you access to staff with extensive experience in brewing
and distilling who are accredited in quality teaching schemes with
a range of support facilities including online support.”
Gin schools
A growing number of gin distilleries run training courses in gin
production. For example, Jamie Baxter operates a Gin School at his
45 West distillery www.45westdistillers.com in Leicestershire, as do
Salcombe Distillery Co in Devon www.salcombegin.com, Nelson's
Gin Distillery at Uttoxeter, Staffordshire www.nelsonsgin.co.uk,
and Manchester's Three Rivers www.manchesterthreerivers.com.
43
CASE STUDY | Winchester Distillery
Case study
Winchester Distillery
www.winchesterdistillery.co.uk
the right size at the right price to Support a growing start-up, but
fortunately discovered our current location at Manor Factory in Old
Alresford through a chance conversation.”
At this point, the relevance of watercress should be explained, and
Paul says that, “The distillery is based in the heart of Hampshire’s
watercress beds, and it has been cultivated at the site since the
1850s. We use this fresh from the field to create our ‘Twisted
Nose’ watercress gin. believe we are the only commercial gin
|
individually and then blend them together using ideas from classic
food recipes or flavour dictionaries (or simply intuition),” he explains.
“We currently have over 200 botanical distillates in the distillery
laboratory to work with. Once a blend has been decided we can then
work back to a recipe which we can tune and distil in larger batches.”
When it comes to NGS, Winchester Distillery both purchases spirit
and distils some of its own. Paul says that, “We buy in spirit that, after
44
CASE STUDY | Winchester Distillery
45
The Microdistillers’ Handbook
Making infusions
When making gin, there are two ways to extract aroma and flavour
from botanicals. The first is to steep them in the base spirit for a
period of up to 48 hours (maceration), though usually significantly
less. This method is followed by major brands such as Beefeater.
The second is the infusion method — favoured by Bombay Sapphire,
among other best-selling gins — for which a botanical basket will be
required. The word ‘basket’ is something of a misnomer, since the
equipment in question is really a metal cylinder, with a screw-on
lid and a fine mesh in the base to allow the botanicals to infuse into
the base spirit as it boils. The basket is suspended in the still above
the level of liquid, with which it never comes into direct contact.
Some distillers combine steeping and infusion, subsequently
blending the two distillates. A classic example is Hendrick’s Gin,
where one still is used to steep botanicals for 24 hours before boiling,
while the second still uses vapour infusion with different botanicals.
Making liqueurs
If making liqueurs, the only additional piece of kit you are likely to
require is a vessel in which to steep the flavouring — fruit, spices
and even beans or roots. Ideally, opt for an IBC (Intermediate Bulk
Container), usually made from blow-moulded HDPE high-density
polyethylene or ideally polythene. Common sizes are 600 litres
and 1,000 litres.
Mash tun
The mash tun is the vessel in which ground malted barley or grist is
mixed with hot water to convert its starch content into fermentable
sugars. Early mash tuns were made of wood, but these had limited
lifespans and cast iron became the norm, now usually replaced by
stainless steel. Some mash tuns are open-topped, but most modern
ones are covered in order to limit loss of heat. Older distillery mash
tuns tended to be equipped with a system of rakes to stir the grist/
hot water mix and maximise extraction, but modern ‘lauter’ mash
46
The equipment needed and setting up
tuns are fitted with large, circling arms with blades attached, and
floors that sieve the solids from the liquid. Lauter tuns are efficient
in terms of yield and also speed of operation. The liquid produced
during mashing is known as worts.
Fermenting vessels
Often known as ‘washbacks’, these vessels are where alcohol is
produced for the first time during the distilling process. The wort
created in the mash tun is pumped into the washbacks, where
yeast is added in order to facilitate fermentation. Washbacks were
traditionally made from wood - usually Oregon pine or larch — but
many distilleries now feature stainless steel washbacks, which are
easier to clean than their wooden counterparts. Most washbacks
are fitted with ‘switchers,’ or mechanical blades that spin around
and prevent an overflow of liquid as the yeast acts on the wort
during fermentation. After fermentation has ceased, the alcoholic
liquid produced is termed wash.
Boiler
If you plan to make rum, then a boiler will be required in addition
to fermentation vessels and stills. Prior to fermentation, molasses
must be reduced with water, and due to its viscous consistency, the
reduction necessitates boiling. A boiler — also known as a copper —
intended for use in brewing is ideal for this purpose.
Stills
Whatever style and make of still or stills you choose, the purpose
is the same - to separate alcohol from water in the wash by means
of heating. This is achievable because alcohol boils at a lower
temperature than water.
Pot stills
Pot stills are traditionally associated with the production of Scotch
single malt and Irish pure (or single) pot still whiskey. They operate on
a batch distillation basis as opposed to continual distillation, which
is practiced in column stills. They are made from copper, which
is malleable and easy to shape as well as an excellent conductor
of heat. Copper also facilitates important flavour changes during
distillation. In Scotland, pot stills are usually used in pairs to distil
malt whisky, while the Irish practice is to triple distil pot still whiskey
in three individual stills. Some microdistillers, however, operate just
47
The Microdistillers’ Handbook
Column stills
The continuous still, comprising two interconnected ‘columns’
was developed by Scottish distiller Robert Stein, who patented his
invention in 1827. It allowed unmalted grain to be distilled into
alcohol on a far larger scale than was possible in traditional copper
pot stills, and that alcohol was also considerably cheaper to make,
thanks to the requirement for only a small amount of relatively
malted barley to be included in the mash bill. The character of the
sprit produced was also notably consistent.
Stein's still design was improved upon in terms ofsimplicity and
efficiency by Irishman Aeneas Coffey, who patented the Coffey Still
in 1830. Coffey’s apparatus comprised two large parallel columns,
the analyser and the rectifier, parallel to the wash still and spirit still
ina pot still distillery, with internal plates of perforated copper. The
Hybrid stills
Hybrid stills are a combination of pot and column still, interlinked
with piping, instrumentation and ‘diverter’ valves, designed to prevent
cross-contamination if distilling different products. They are popular
48
The equipment needed and setting up
with gin distillers who re-distil neutral spirit in the pot element along
with the botanicals, which are steeped before boiling, or in the case of
vapour infusion, placed in a ‘basket’ above the spirit and the vapour
created during boiling is infused with the botanicals. Whichever
method is used, the resultant spirit is then distilled again through
the column still to remove remaining undesirable compounds.
Vacuum distillation
Whiskydistiller William Grant & Sons Ltd uses vacuum distillation
at its large scale Girvan grain distillery in Ayrshire, but number
a
Manufacturers
Today’s start-up distiller is fortunate in that as microdistilling has
grown in popularity, so the range of companies providing equipment
has also increased. Many of the following firms offer ‘turnkey’
distilling services, where they act as a single point of contact for
the customer and create entire distilleries from scratch ready to
be fired up, but will also produce bespoke items of kit to personal
specifications. They also usually offer a great degree of flexibility in
terms of scale.
49
The Microdistillers’ Handbook
Briggs plc
www.briggsplc.co.uk
With a pedigree dating back some 270 years in the brewing and
distilling industry, Briggs is one of the most respected names in
process engineering and also offers consultancy and design services.
Additionally, the firm has interests in food, pharmaceuticals,
health and beauty products and biofuels, with bases in the former
brewing ‘capital’ of Burton-on-Trent in the UK and Rochester, New
York State, in the USA. Briggs produces equipment for mashing,
fermenting and distilling, and has taken a leading role in energy
and water reduction techniques.
Forsyths
www.forsyths.com
Forsyths is based in the Moray village of Rothes in Scotland’s
Speyside whisky-making region, and when it comes to distillery
fabrication the firm is practically royalty. Established in 1890,
Forsyths is now in the hands of the third and fourth generations
of the Forsyth family, and has grown to become a global player in
the world of distilling while also having significant interests in the
oil and gas industries. Forsyths has been responsible for creating
large-scale facilities such as the new Macallan distillery, just a few
miles from its headquarters, and equipped with no fewer than 36
pot stills, giving a potential annual capacity of some 15mla. Ona
much smaller scale, Forsyths provided a turnkey service for the
0.5-tonne batch size Cotswolds distillery in Warwickshire and for
the one tonne batch size Ballindalloch distillery on Speyside.
McMillan
www.memillanltd.co.uk
Another classic Scottish company with coppersmithing at its
50
The equipment needed and setting up
LH Stainless
www.1-h-s.co.uk
Speyside Copper Works
www-.speysidecopper.com
LH Stainless is based in the premises of the former Towiemore
distillery near Dufftown on Speyside, and offers a wide range of
design, fabrication and installation services for distilleries of all
scales. The firm will build gin stills from 200 litres capacity upwards,
constructing them either from stainless steel, copper or a mixture
of the two. All copperwork is undertaken by associate company
Speyside Copper Works, located a few miles away in the Moray
capital of Elgin.
Carl
www.brewing-distilling.com
Carl is Germany’s oldest distillery fabricator, established in 1869
and based near Stuttgart. The company is an attractive option for
small-scale distillers, producing kit from a 50 litre pilot pot still up
to a12,000-litre copper still, along with column stills and everything
from single pieces of equipment to full turnkey operations. During
recent years there has been a tendency for start-up microdistillers
to look to Europe to source their kit, as waiting lists in the UK have
sometimes been lengthy, and Arbikie and Sipsmith distilleries are
just two in the UK to be equipped with Carl stills.
Frilli
www. frillisrl.com
Like Carl, Frilliis an old-established European distillery fabricator,
with the family firm having been formed in Italy backin 1912. Frilli
is based in the heart of the Chianti region, 20km from Siena, and
offers a wide range of services from feasibility studies to design,
51
CASE STUDY | Organic Distilleries LTD
Case Study
Organic Distilleries LTD
www.organicdistilleries.com
52
CASE STUDY | Organic Distilleries LTD
at night. The big copper pot stills are always the stars of the distillery.”
On the subject of distillery design, Gareth points out that, “You have
challenges to deal with such as the fact that a stillhouse is dry and hot,
while mashing is a moist process, and both areas of the distillery need
to be highly ventilated. You’re constrained by building regulations and
planning, health & safety and best practice legislation. We bring all of
these factors together and what we create has to fit into the landscape,
it’s got to be attractive and look as though it suits the place.
“The distillery is your ‘brand home,’ so you want it to look and feel right.
Authenticity is now one of the key purchasing decisions. People will soon
migrate away from the brand if you’re not authentic. The visitor aspect
is very important. When you consider visitors and their experience you
can give the distillery a great flow for visitors.”
Since designing Ardnamurchan, Organic Distilleries has fully designed
two other now-completed Scottish distillery projects, namely Drimnin and
Lindores Abbey Distillery. The former is even more remote in location
than Ardnamurchan, and is best reached via the Isle of Mull rather
than the mainland itself! Like Lindores, it was based on a former farm
steading, and Gareth notes that, “Drimnin works with a biomass boiler,
the same as Ardnamurchan. Again, it’s a very remote location with
access issues and related high costs to get kerosene in, and again there
are lots of local trees.
“My real interest is in terroir. As far as I’m concerned, the atmosphere
in which whisky is matured is key. think micro-distillers, the guys we work
|
of getting the character of the place into the whisky through dunnage.”
When it comes to working with a historic site like Lindores in Fife,
where the distillery is built within the medieval abbey complex, an
architect’s sensitivity to the issues of merging old and new is essential.
Gareth says that, “We kept as much of the old material as we could.
We’ve used pantile roofs which are typical of the east coast of Scotland
- the tiles were brought back as ballast from the low countries.
“Two-thirds of the buildings at Lindores are devoted to history and
interpretation — there’s lots of story to tell. You had historical precedent
as well as just an old steading. We incorporated some pieces of columns
and stones that were uncovered during construction and examined by
archaeologists, to give them a new lease of life. The distillery buildings
face the abbey, look straight into it, so you have a real link between the
53
CASE STUDY | Organic Distilleries LTD
old and the new. There was a strong brief at Lindores for us because
of the heritage angle.
“Most of the people we work with want us build space for future
expansion, so we leave room for future washbacks and stills. These
spaces make excellent entertainment space in the meantime.”
While declaring that, “Whisky-making in England is set to get much
bigger, think,” Gareth points out that “We are also now designing some
|
whisky distillery up and running, but it’s amazing with gin distilling just
how cost effective it can be. You could even build a distillery in a shipping
container: I'd love to do that!”
Noting that, “You can start with a 50-litre still, almost experimental
size,” Gareth observes. Micro-distilling is a lifestyle choice for many, and
the rise of the internet and social media have helped tremendously.
“Micro-distilling is the experimental end of distilling - you can have
some fun with it.
There is now a move from established and successful gin distillers
to start move into brown spirits. The legacy value of maturing spirit
is a natural evolution for businesses which have already mastered
branding, they have sales and distribution networks in place, and they
are companies which are generating cash flow. Gareth adds, “For me
though distilling at all scales is about localism, it’s part of the great food
and drink character of a place. Whether it’s matured whisky, rum or
local botanicals for gin, production is all about terroir, and that makes
each product unique.”
54
The equipment needed and setting up
Hoistein
www.a-holstein.de
The firm of Arnold Holstein is based at Markdorf in Germany’s
Lake Constance region, famous for the cultivation of fruit crops,
and Holstein started out producing kit for fruit distillation. Today,
the company supplies distilling equipment from a capacity of five
litres up to 150 litres for microdistillers, and for larger operations
plant with filling capacities from 150 to 6,000 litres. Holstein
specialises in distillation systems that combine a copper pot and
arectifying column. Holstein stills are in use at Cotswolds distillery
in Warwickshire and Warner Edwards in Northamptonshire,
while the firm's first Scotch whisky venture was Lone Wolf.
Hoga
www.hogastills.com
Hoga is based in Galicia, Spain, and has developed a general
still fabrication business in recent years while retaining its close
connections to the world of wineries. The company produces
somewhat exotic-looking ‘alembic’ style copper stills, which have
been installed at many UK microdistilleries, including Bimber in
London, Strathearn and Eden Mill in Scotland.
iStill
www.istill.eu
One of the most recent innovations in distillation technology is the
iStill, manufactured in the Netherlands. The company makes bold
claims for its stainless steel-based stills, declaring that iStill is “...
the only automated and robotised distillery line-up in the world. It
helps the craft distiller harvest the right tastes, with automated cuts
management. Our innovations help create better product more
consistently and at lower costs, and with the smallest heads and
tails losses in the industry.”
iStill capacities vary from 100 litres to 5,000 litres, and according
to the manufacturers, “The iStill can mash, ferment and distil
55
The Microdistillers’ Handbook
Raw materials
Alcohol can be made from any substance that contains sugar, but
the following are the principal ingredients for UK distilled spirits.
Barley
The sole cereal permitted in the production of single malt whisky is
malted barley. A small number of British distilleries make their own
malt on site, but most choose to buy in malt from a commercial
maltster, specifying any peating levels required and perhaps also
specifying barley varieties. Malting barley on a domestic scale is
labour intensive and consistency may be hard to achieve, but some
distillers, such as Kilchoman on the isle of Islay, consider it worth
the effort in order to be able to claim that theirs is a true ‘grain to
bottle’ process.
Anumber of microdistillers, and particularly those with a related
brewing enterprise, choose to use quantities of malt styles usually
associated with beermaking, for example pale ale malt, lager malt,
crystal malt, brown malt and chocolate malt. Unmalted barley is
used in the production of Irish single pot still whiskey and may also
be used to make neutral grain spirit (NGS).
Maize
Once the principal grain used to distil grain whisky and neutral
grain spirit in the UK, maize has become more expensive than
wheat in recent years, and accordingly is used by fewer distillers.
-
The cereal — also known as corn has its origins in what is now
Mexico. Some distillers consider that maize produces a cleaner,
sweeter flavours than wheat and is more easily fermentable, also
leaving less residue.
56
Low stress on pressure vessel for longer life
www.fulton.co.uk
—_ ®
, @) +44 (0)117 972 3322
— Fulton
-— PWRE
TECHNOLOGY
Environmentally friendly
key points of the VSRT [email protected]
Brewman
Control your distillery from anywhere with BrewMan V7
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Stevenson
Reeves Ltd
Supplying the Scotch Whisky Industry since 1805
Saccharometers, Alcohol Hydrometers, Thermometers,
Gauging Rods, Coopers’ Tools, Sampling Equipment,
Analysis Equipment
40 Oxgangs Bank, Edinburgh, Scotland, EH13 9BT
Tel: +44 131 445 7151 Fax: +44 131 445 7323
www.stevenson-reeves.co.uk
PROVIDERS
MICRO &
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and turnkey solutions for a
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thecrattdistillingbusiness.com
The equipment needed and setting up
Wheat
Now the most commonly used grain to distil grain whisky and
NGS, wheat accounts for almost 50 per cent of all cereal grown in
the EU. World trade in wheat is greater than all other cultivated
crops combined. It was probably first grown in the ‘Fertile Crescent’
around the Nile, Tigris and Euphrates rivers from c.9,600 BC.
Potatoes
Potatoes were first introduced to Europe in the mid 16th century
from their native Peru, and have long been associated with the
production of vodka and of illicitly-distilled poitin in Ireland. Many
large-scale commercial vodka brands are now made using cereals
rather than potatoes, but a number of UK microdistillers such as
Chase and Arbikie distil vodka from potatoes, and also use this as
the basis for their portfolios of gins.
Molasses
The production of rum begins with sugar cane, usually in the form of
molasses, which is a by-product of the sugar-making process. It may
also be made from sugar cane juice, but in the UK imported molasses
forms the base of rum distillation. The traditional home of rum is
the Caribbean and Latin America, where sugar cane is cultivated.
Yeast
A sugar-yielding substance may be key to all distillation, but two
other ingredients are also essential. One is yeast, without which
fermentation cannot take place. Yeast is a single-celled fungus, and
for many years most Scotch whisky distillers have used the M or
Mx strain of Saccharomyces cerevisiae, though traditionally they
favoured a mix of ‘distiller’s yeast’ — to give a high alcohol yield —
and ‘brewer's yeast’ to add mouthfeel and flavour. Distillers such
as Adnams and Lone Wolf which take wash from their associated
brewing operations to make whisky, use brewer's yeast. Formats of
modern distilling yeast include cream, pressed and dried variants.
Anumber of microdistillers are experimenting with different yeast
strains, and this element of distilling may well be explored further
as operators seek to discover new ways of altering spirit character,
however subtly.
Water
Along with yeast, water is the second essential ingredient for any
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The Microdistillers’ Handbook
Disposal/water treatment
The waste left over after the brewing and distilling stages of spirit
production must be dealt with in a responsible manner, and there
is no shortage of legislation intended to ensure that distillers do
so. If making gin or vodka, the Wine and Spirits Association (WSA)
estimates that it takes 2.5 litres of water to produce one litre of
product, though other sources suggest the figure for water usage
is higher. Distilleries of all sizes have been concentrating on the
issue of reducing waste water, and some of the largest whisky
distilleries in Scotland - owned by companies such as Diageo and
Pernod Ricard—have made major advances in this area, sometimes
by using hot water produced during the distillation stage to heat
stills later.
Where neutral alcohol is sourced externally for the production of
white spirits, there is less water usage than where full distillation is
taking place, but the resultant waste water will have an undesirably
low Ph level and contain traces of botanicals. The Environment
Agency in England www.gov.uk/government/organiations/
environment-agency, Natural Resources Wales www.gov.wales/
topics/environmentcountrsyside or the Scottish Environmental
Protection Agency (SEPA) in Scotland www.sepa.org.uk issue
permits for the discharge of waste water into watercourses, and
Trade Effluent Consent is required by water supply companies if
the intention is to discharge waste water into the sewerage system.
Given sufficient space, a system of reed beds may be established
to filter out pollutants from waste water, and such a scheme will
enhance your ‘green’ distilling credentials, as the reed beds will also
be highly attractive to wildlife.
When conducting full mash distillations using grains, the
58
The equipment needed and setting up
59
The Microdistillers’ Handbook
Chapter Three
Spirits production
Developing recipes 60
Casks 64
Making spirits 68
Quality control 80
CASE STUDIES
Pickering’s Gin Distillery 66
Adnams 76
60
Spirits production
Developing recipes
Single malt whisky
It can be argued that the most straightforward spirit to make in
terms ofits ‘recipe’ is single malt whisky. 100 per cent malted barley
is the only cereal permitted and the other ingredients are yeast
and water.
However, many distillers consider it the most difficult to make
and it is often neglected by start-up ventures. While most large-
scale distillers are busy making malt whisky from the same
-
mainstream, recently developed barley varieties, and the most
efficient distillers’ yeast, microdistillers have the luxury of being
able to experiment with barley, malting styles and yeast strains.
Many of what are termed ‘heritage’ varieties of barley have been
abandoned by most distillers because newer types have been
developed that are higher yielding and more disease resistant.
For the microdistiller, however, yield is not the ultimate objective
and the use of virtually redundant barley varieties can give quite
significant variations of spirit character.
When it was developed during the 1960s, Golden Promise
became a game-changer for the Scotch whisky industry, as it
could withstand Scottish winds due to its shorter, stiffer straw, and
Scotland was subsequently able to grow most of the barley required
for whisky making. Now long abandoned by the mainstream,
Golden Promise continued to be used by The Macallan distillery
on Speyside for many years due to its ability to create the
rich, oily spirit style required, and more recently the Minstrel
variety has replaced Golden Promise — as it is able to provide the
same characteristics.
A number of microdistillers work with heritage barley varieties,
-
including Toad in Oxford which has taken grain sourcing to a
whole new level and the London Distillery Company.
When it comes to malting the barley, regardless of variety some
brewing enterprises with accompanying distilling operations have
chosen to experiment with types of malt most usually associated
with beer making, including pale malt, chocolate malt, crystal malt
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The Microdistillers’ Handbook
and lager malt. Each of these gives a slightly different flavour profile
to the spirit being distilled.
It terms of yeast, some microdistillers have eschewed the use
of modern distillers’ yeast and have reverted to the old practice
of mixing brewers’ and distillers’ yeast. The London Distillery
Company, for one, has undertaken research into varying strains
of traditional distillers’ yeast, and this seems likely to be an area
for much greater exploration in future, even though the nuances
in character imparted to the spirit itself may be small.
Not all whisky is single malt, of course, and Adnams of Suffolk
have produced a “Triple Malt’ whisky made from malted barley,
plus wheat and oats, and rye is becoming an increasingly popular
grain for microdistillers exploring the whisky genre.
Blended whisky
At present, most UK whisky microdistillers are focusing on single
malts or variants such as the Triple Malt noted above. However,
as the increasing amount of maturing microdistilled whisky hits
the market, and new entrants to the arena opt for whisky making
as at least part of their product range, it seems highly likely that
limited editions of premium blended whiskies will be developed
to expand the sector.
When deciding on the recipe for your blended whisky there are
several factors to bear in mind. As a rule of thumb, the higher the
percentage of malt whisky compared to grain whisky in the recipe,
the better quality the product, and higher prices can therefore be
commanded. However, grain whisky is significantly cheaper to
buy than malt whisky.
Age of component whiskies is also crucial. Most grain whisky is
used for blending when it is four to five years of age, though it can
be deployed when significantly aged. Similarly, older malt whiskies
give an impression of luxury, but a key factor to bear in mind is
that the older the whisky the more expensive it is in the first place.
Stylistically, there are also decisions to make. Are you aiming for
a full-bodied, peaty blend, in which case Islay malts will doubtless
come into consideration, or is your intention to produce something
rich, sherried and postprandial in character? If the latter is your
aim, then sherry cask-matured Speyside and Highland malts will
play a significant art in your recipe.
Strength is yet another factor to take into account. The ‘standard’
40% ABV has now come to feel less than special for upscale
62
Spirits production
Gin
With regard to gin production, the ingredients become more varied
although the recipes are simpler. If you choose to buy in neutral
grain spirit (NGS) rather than distil your own, the first variable has
already been decided for you, as the NGS in question will have been
distilled from either wheat or maize. If, however, you distil from
scratch, the choice of raw material is yours to make.
Wheat and barley are the most common grains used, but Adnams’
Rising Sun Gin is made from locally grown rye, and the same
company’s First Rate Triple Malt Gin comprises wheat, barley and
oats. Rather than cereal, some producers such as Arbikie and Chase
use potatoes as the base for their gin, with the former favouring
home-grown King Edward, Cultra and Maris Piper varieties, while
the latter cultivates King Edward and Lady Claire.
Whether bought in or distilled on the premises, the NGS is
turned into gin by the addition of botanicals, and while juniper is
compulsory, and others such as coriander and angelica are almost
ubiquitous, many gin distillers source ‘signature’ botanicals
that are ideally unique to them. For example, Isle of Harris Gin
www.harrisdistillery.com has as its signature botanical sugar
kelp, hand-harvested by a local diver, and intended to embody
the maritime environment in which the Outer Hebridean
distillery operates. Creating the optimum gin recipe can be
a lengthy process involving lots of trial and error, combining
various permutations and quantities of botanicals until the
desired effect is achieved.
Vodka
As with gin, if buying in NGS the choice of grain has already been
made, but distilling from scratch gives the opportunity to opt for
barley, wheat, rye (Toad’s Oxford Rye Vodka) a mixture of wheat,
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The Microdistillers’ Handbook
Liqueurs
A liqueur comprises a distilled spirit that has been flavoured
with fruit, cream, herbs, spices, flowers or nuts, and is typically
bottled with added sugars. The spirits used are gin, vodka, brandy
and whisky.
Nut-based liqueurs are very popular — think coffee, chocolate
and big brands like the hazelnut based Frangelico. Herbal liqueurs
are also in demand, with Chartreuse (made using no fewer than
130 herbs, plants and flowers) being one of the most recognisable
names on the market. Usually, herbal liqueurs are produced from
a relatively wide range of botanicals. This category also includes
aniseed-based liqueurs such as absinthe and sambuca, and bitter
liqueurs like Campari.
Cream liqueurs usually comprise a spirit base, an emulsion of
cream and various flavourings. The original cream liqueur was
Bailey's, made using Irish whiskey and launched in 1974. Despite
widespread emulation and fierce competition, Baileys retains some
25 per cent of the global liqueur market.
A final category of liqueurs comprises those made without
neutral alcohol as a base but rather with a flavourful spirit such
as Cognac (Grand Marnier) or whisk(e)y (Southern Comfort,
Drambuie and the aforementioned Bailey’s).
Some liqueurs — such as those based on cream based — are more
difficult to perfect and produce than others, therefore it probably
makes sense to start with staples already being produced on a craft
scale before branching out into more adventurous and innovative
directions. For example, Friary Liqueurs of Frome in Somerset
www.friaryliqueurs.co.uk produces gin-based raspberry,
ginger and sloe liqueurs, plus vodka-based chocolate, raspberry,
strawberry, toffee and ‘Cloudy Lemon liqueurs.
Casks
It may seem surprising to see ‘casks’ as an element of spirit recipes,
but if you plan to barrel-age gin, vodka or rum, and if whisky
is part of your product range, then that is exactly how casks
should be viewed. It is estimated that up to 85 per cent of
the character of whisky develops during maturation, and
the botanicals within gin can be transformed in terms of the
64
Spirits production
65
CASE STUDY | Pickering’s Gin Distillery
Case Study
Pickering’s Gin Distillery
www. pickeringsgin.com
messing around at home with a small pot still using Tesco vodka to
make blackcurrant gin purely as a hobby. My father died in December
2012, and after that man named Gopal, who had studied with
a
my father many years ago, got in touch and gave me the recipe -
handwritten on a scrap of paper - which they had come up with in
Bombay.” The recipe laid the foundations for the three core gins
currently made by Pickering’s, with the botanical recipe comprising
juniper, coriander, cardamom, angelica, fennel, anise, lemon, lime
and cloves.
Long-term friends Pickering and Gammell had been business
partners for a dozen years, with Pickering latterly working as
managing director of Summerhall arts hub - housed in the former
‘Dick Vet,’ as the animal hospital was known locally. As Marcus says,
“Matt and took over a derelict area to the rear of the main building
|
—
previously kennels - and we rebuilt it over the Christmas holidays
in 2013. We started it purely as a hobby, but it grew and grew, and
after three months we doubled in size.”
Pickering and Gammell financed the project personally, so sticking
to a relatively modest budget was crucial. As Marcus says, “We
started with one alembic still made in Portugal, and subsequently
added a second. They were only around 6,000 each, but we did
just buy the pots, and built everything around them ourselves. We
couldn’t afford expensive Carl stills or hybrids - we started it as a
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CASE STUDY [| Pickering’s Gin Distillery
declares Marcus. “It’s much more embedded into the way people
consume alcohol now. Drink less, drink better. There are more gin
cocktails than any other kind because it’s so versatile. really don’t
|
see rum or tequila or whatever coming along and taking over. The
possibilities with gin are infinite, there is so much that can still be
explored with botanicals and flavour profiles and with full-strength
flavoured gins now having a boom in the market, it is a really exciting
time for gin as a whole.”
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The Microdistillers’ Handbook
Making spirits
The business of creating spirits begins with raw fermentable
material, whether it be cereal, potatoes, molasses or apples.
Malt whisky
Malt whisky requires malted barley as its cereal component, and
the first stage of production involves malting the barley to create
enzymes that will convert the starch contained in the barley into
soluble sugars.
This begins with what is termed ‘steeping,’ during which
the barley is immersed in water several times, with ‘air breaks’
between immersions. This fools the barley into germinating much
more quickly than it would in a field. In modern, commercial
maltings, the barley is transferred into large metal drums, where
air circulates in order to control the temperature of the grain. The
next five days will see the barley sprout, and the skill of the maltster
is to judge the precise point at which the cell walls have broken
down and started to produce enzymes that will later convert starch
to soluble sugars without using up all the starch, which would
render it useless.
Germination is halted by a period of kilning, which involves
heating and drying the barley— now known as‘green malt’ - usually
using gas, sometimes with the introduction of peat smoke if a
peated style of malt is required.
Traditionally, the barley was laid out on malting floors at
individual distilleries and turned manually, using wooden shovels,
known as shiels, and coal and peat were employed for kilning.
Ultimately, the sheer volume of malt required by expanding
distilleries rendered most malting floors obsolete, and consistency
was also an issue. However, this method is most likely to appeal
to microdistillers wishing to make their own malt, particularly as
consistency is not necessarily the overriding factor that it is for
large-scale whisky makers.
Today, very few distillers make their own malt, though a handful
of relatively large-scale commercial distillers in Scotland — including
Balvenie, Highland Park, Laphroaig and Bowmore - produce a small
proportion of their malt in-house, mixing it with malt bought in
from commercial maltsters. The Islay ‘farn’ distillery of Kilchoman
produces around 30 per cent of its own malt requirements and
distils a 100 per cent Islay single malt using just barley grown on
the distillery’s own land and malted at the distillery.
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Spirits production
Milling
Milling is usually the first stage of whisky making now undertaken
at individual distilleries, and it serves to prepare the malt for
mashing. A modern Buhler four row mill can process one tonne of
malt per hour, grinding it into a coarse flour termed grist. This grist
comprises three parts, namely husk, grits and flour. Proportions
vary slightly from distillery to distillery, but a typical split would be
in the region of 70 per cent grit, 20 per cent husk and 10 per cent
flour. It is important to get this just right, as too fine a milling would
be likely to clog up the mash tun, and too coarse a milling would
allow the water — or liquor- to drain from the mash tun too quickly,
without extracting the optimum amount of sugar.
Mashing
Mashing takes place in a mash tun, usually constructed from
stainless steel and fully enclosed, though some older examples still
found in distilleries are made from cast iron and are open-topped.
Asystem of rakes or blades stir the mash for optimum extraction.
Most commercial whisky making distilleries are equipped with
a circular mash tun with a conical top, and minimum capacity of
0.5 tonne or one tonne. However, for mashing on a relatively small
scale, tuns with a less conventional appearance can be sourced.
Jacketed, electric-heated mash tuns with a capacity of just 400
litres are available, though this style of tun also comes with larger
dimensions, right up to 5,000 litres.
In a conventional mashtun, the grist is pumped into the vessel
and hot water is added. The water acts with the enzymes developed
during malting to convert starch into sugar. Strict temperature
control is essential, as the enzymes will be killed if the water is too
hot. The water is usually introduced at three or sometimes four
stages, getting hotter each time, starting around 67°C and rising to
near boiling point. Stirring the contents of the mash tun helps the
drainage, sugar extraction and worts cloudyness — an important
quality parameter. Once mashing is complete and no more sugar
remains to be extracted, the wort — as it is called - is drained off
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The Microdistillers’ Handbook
Fermentation
One cooled, wort is pumped into washbacks — or fermenters —
for the fermentation stage of whisky-making. Traditionalists
favour either larch or pine wood for washback construction,
and a company like Joseph Brown Vats of Dufftown on Speyside
(www.woodenvats.com) is highly skilled at fabricating wooden
vessels such as these.
Those who advocate the continuing use of wooden washbacks
rather than those made of stainless steel argue that the quality of
spirit may be influenced by the activity of bacteria that the wood
harbours, and which can never be totally eradicated, however
vigorous the cleaning regime. One of the arguments for stainless
steel is that backs made from the material are much easier to clean,
and sterilisation is more complete.
Microdistillers tend to opt for stainless steel vessels — usually
referred to as fermenters rather than washbacks — that essentially
are cylindrical or conical tanks, with capacities varying from 200
to 5,000 litres. In the washback or fermenter, yeast is added to the
cooled wort, the yeast cells multiply, feeding on the sugars, creating
alcohol and carbon dioxide. The COz causes the wash — as it is now
officially known - to froth quite violently, and a rotating blade or
‘switcher’ is fitted in most washbacks to cut down the froth as it
rises in the vessel.
The temperature of the wash increases — to a high of around
35°C, as does the level of alcohol present - to between six and nine
per cent. The increasing alcohol level and lack of fermentable sugars
causes yeast multiplication to be suppressed, and fermentation is
effectively at an end after 48 hours.
Many distillers use this as their standard fermentation time, but
others leave the wash in situ for more than twice that period, as
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Spirits production
Distillation
Distillation is the ‘showbiz’ end of whisky making, with its eye-
catching still shapes and designs, and it is the stage where many
permutations of equipment and operation come together to
determine the character and quality of the whisky being made.
Conventional malt whisky distilling employs two - or occasionally
three - connected copper pot stills, the first termed the wash still,
and the second the spirit still.
The wash is pumped into the wash still and heated to around 78°
C, at which point the alcohol boils and passes in vapour form from
the still to a shell and tube condenser, or traditional worm tub - a
long coil of copper immersed in a wooden or metal vessel containing
cold water. In both cases, cold water turns the vapour into liquid,
known as low wines, which has an alcohol strength of 20-23% ABV
The strength needs to be significantly increased, and this takes
place in a spirit still, sometimes referred to as a low-wines still.
Again, heat is applied to the still, and the early run of volatile
- -
compounds known as foreshots and the final run with its oily
compounds — called feints — are kept separate from the heart of the
run-the centre cut — that has a strength of around 68-70% ABV. This
is collected in the spirit receiver, while the feints and foreshots are
saved for re-distillation with the next fill of low wines.
Traditionally, the business of ‘cutting’ the spirit was done
manually by a skilled stillman, using a hydrometer to measure
specific gravity and a thermometer to gauge temperature in order
to determine just when to cut. These calculations took place within
alocked glass and brass-bound spirit safe to which the stillman had
no access in order to maintain the level of security required by the
excise service. The stillman cut the spirit by using external handles
on the spirit safe to direct the liquid into either a receiver for feints
and foreshots or a receiver for the heart of the run.
Today, many large-scale distilleries operate systems with
programmable computerised cut points, and the stillman plays
no creative part in the whisky-making process. Resident excisemen
have long gone from individual distilleries too, and a regime of
‘self-policing’ means that the keys for the spirit safe locks are held
by distillery management.
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The Microdistillers’ Handbook
Other whiskies
The production process for pot still whiskies made from rye,
or a combination of cereals such as wheat, barley and oats, are
essentially the same as for malt whisky, though there may be some
process differences due to the varying characteristics of the grains.
Vodka
If distilling from scratch using grain, the initial processes of vodka
and gin production are very similar to those for making malt
whisky. The grain is milled, mashed and fermented, and then
sometimes run through a beer stripping still, as described above.
The low wines may then be transferred to a copper pot still with
an associated rectifying column for two consecutive distillations,
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Spirits production
further refining the spirit each time and diluting it with water
between runs. When distillation is complete, the distiller draws
off from the top of the column the foreshots or ‘heads,’ followed
by the heart of the run and finally the feints or ‘tails’ fraction. To
produce the purest vodka - which is actually ethanol plus water —
distillers take a relatively narrow cut as the heart of the run. A final
run to create the purest spirit possible may then be undertaken in
a vodka ‘polishing’ column.
Other distillers will distil their vodka up to four times in a copper
pot still and then run it twice thougha rectifying column. The end
result can be up to 96% ABV, though 80-85% ABV is more usual.
This spirit is then reduced with pure water to bottling strength.
Some distillation systems specifically designed to create vodka
will comprise integrated copper pot, twin rectifying columns and
a ‘polishing’ column. Another option is for vodka distillers to filter
their product through carbon for ultimate purification, usually in
a stainless steel vertical vessel known as a carbon column.
If distilling with potatoes or apples — in the manner of Chase
Distillery — the potatoes or apples are initially mashed, and in the
case of potatoes, brewer's yeast is added to encourage fermentation,
while the apples will naturally ferment. The fermented liquid is
then distilled in the same manner as cereals.
Gin
The method of gin distillation to the point where a pure spirit is
created is identical to that of vodka. Indeed, many distillers use their
vodka as the base for their gin. It is widely recognised that the size
and shape of the still and the direction of lyne arm affect
the character of gin just as much as they affect whisky. A short
pot still with a downward-sloping lyne arm will produce a
relatively oily, sweet gin, while a tall pot or a column still will lead
to a ‘cleaner’ spirit.
The legal difference between vodka and gin is the use of botanicals
to flavour the latter, with juniper being a compulsory ingredient.
The botanicals are either fed into the still along with the spirit and
redistilled (known as steeping or maceration) or placed in a basket
at the head of the still (known as infusion). If using such a basket, the
botanicals are assembled in a particular ratio by weight and layered
according to particle size. The purpose of this distillation is to extract
the essential oils from the botanicals, and these oils amount to less
than five per cent of the total of botanicals used.
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The Microdistillers’ Handbook
Where NGS has been bought in rather than distilled on site, the
process of ‘rectification’ as it is known involves diluting the spirit to
around 45% ABV before placing it and the botanicals in the still, or
in a basket if infusion is preferred.
One notable still type once commonly used for infusion is the
Carter Head still, developed during the 19th century by the Carter
brothers, who worked for Aeneas Coffey before starting up their own
still design and manufacturing enterprise. Their eponymous still was
originally intended to rectify the crude spirit produced in Coffey stills
into a spirit suitable for gin and vodka distillation. An average-sized
Carter Head still usually has a capacity of around 3,000 litres and is
fitted with a botanical basket.
Production of Carter Head stills ceased during the 1960s, but a
number have been made since for gin distillation in the UK and
abroad. A Carter Head still dating from 1948 is used in the production
of Hendricks Gin, and Bombay Sapphire also employs one. Adnams
Copper House distillery in Suffolk has an 850 litres copper pot still
with a three-plate Carter Head for gin distillation, and when William
Grant & Sons established their Reyka vodka distillery in Iceland
in 2005, they had a bespoke Carter Head still with a high copper
content constructed in order to produce a smooth vodka from just
one distillation.
Whether steeping or infusion is practiced, once distillation is
complete the gin is reduced to bottling strength (a minimum of 37.5%
ABV, but usually stronger) using demineralised water.
If making ‘London Dry’ gin, no flavourings or colourings may
be added after the distillation process, except for a tiny amount of
sugar. This is the ‘purest’ form of gin and is intended to showcase the
botanicals. ‘Distilled gir’ differs from London Dry in that flavourings
may be added prior to bottling.
Making gin using the method known as ‘compounding is sometimes
seen as a ‘short-cut,’ and lacking the integrity of rectification.
Essentially, compounding involves extracting essential oils from
botanicals by a process of pressing and then adding the oils to the
neutral spirit.
Rum
Taking imported molasses as the starting point, the first stage of
production is to ferment the molasses, in the same way that you would
ferment grain. Distillation can take place in pot still, column still or
a
74
Spirits production
will vary in strength from 70% ABV to 90% ABV, depending on the
number of times it is distilled, and it is subsequently reduced with
water to bottling strength.
Most rum is aged prior to bottling, using either ex-Bourbon
casks or virgin oak casks. The effects are the same as when ageing
any other spirit, with harsh elements being eliminated and new
aromas and flavours created by the interaction between oak, spirit
and air. As with whisky matured in a hot climate such as India or
Australia, the effects are accelerated, and three years ageing in
Goa or Tasmania may have much the same effect as 12 years in
Speyside or County Cork.
Some rums will be infused with herbs, fruits or spices, and this
process usually takes place after ageing. ‘White rum is filtered
through charcoal to lighten the colour and flavour, producing a
spirit more amenable to creating mixed drinks.
While most rum is made from molasses, a version known as
‘rhum agricole’ - originating in the French Caribbean - is produced
by fermenting and distilling the juice pressed from sugar cane. It
has quite intense flavours and is available in both unaged and
aged versions.
There are four main production methods for rum made with
molasses, namely distillation, maceration, infusion and percolation.
Distillation usually takes place in a copper pot still, and the alcohol
is mixed with the raw material in question and heated to extract
flavour. Usually three runs are required to concentrate the flavours
and remove impurities.
Maceration involves soaking the raw materials in spirit until
their flavours are fully absorbed. The final product is known as
‘tincture.’ This may take up to a year, so patience is required! One
way of speeding up the process is to undertake infusion, which
involves heating the raw materials and spirit for several days.
The final method of percolation involves placing the materials
in a container and bubbling heated spirit through it - much like
the operation of a traditional coffee percolator. The end result is
called ‘extract.’
Whichever method is used, the resultant liquid is compounded
to recipe specifications and then may be filled into oak casks to
allow greater flavour development before being refined to remove
impurities, filtered and mixed with sugar syrup to achieve the
desired degree of sweetness. Vegetable dyes are used to add colour
prior to a final filtering and bottling.
75
CASE STUDY | Adnams
Case Study
Adnams
www.adnams.co.uk
76
CASE STUDY | Adnams
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The Microdistillers’ Handbook
Cider brandy
The production of cider brandy parallels that of other spirits at the
distillation stage. It takes approximately litres of cider to make
11
one litre of spirit and seven tonnes of apples to fill a small barrel
for maturation. Ageing the spirit is key to creating something really
fine, and the interaction between oak casks and the atmosphere
has just as significant an effect on cider brandy as it does on whisky.
Bottles
It is possible to have your own bottle designed from scratch, a
process that involves initially creating a 3D design image, allowing
the manufacturer to calculate thickness and the overall amount
78
Spirits production
Labelling
However you wish your label or labels to look, there is a certain
amount of information that they are legally required to carry. This
information includes a ‘duty-paid’ stamp, ideally included on a
back label, expression of volume in cubic litres, strength expressed
as % vol. alcohol, country of origin, and any required product
description, such as ‘Scotch Malt Whisky.’ It is also advisable to
include a health warning about drinking sensibly.
Decide how much information you want to impart via the
packaging. Too much looks cluttered — clean lines are good -
but then again, your product may not be known to the potential
consumer compared to the likes of Gordon’ Gin, Johnnie Walker
Whisky or Smirnoff Vodka, all of which are familiar and trusted
brands. You should try to get your USP or USPs across on the
packaging if at all possible.
Using a carton or tube to hold your bottle allows space for
additional information that will not fit onto the bottle labels, and has
connotations of a quality product, but it will, of course, add to your
costs, and with environmental issues such as recycling likely to be
ofimportance to your target market, many microdistillers prefer to
allow their bottles to do the talking without further embellishment.
Details of designers, and bottle and label manufacturers are listed
on page 149.
Contract bottling
Initially, it may well be worthwhile investing in some small-scale
bottling machinery to handle relatively low volumes, but as your
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The Microdistillers’ Handbook
On-site bottling
One option for the start-up distiller is hand-bottling and
labelling, but this is a time-consuming - and arguably soul-
destroying — task. company such as Chromex Technology Ltd
A
Quality control
Although the hands-on distiller should recognise any deviations
in quality and consistency from one batch of spirit to another,
assembling a small ‘tasting panel’ of trusted individuals who are
very familiar with the product or products in question is a good way
of backing up the individual’s judgement. Involving staff members
and/or supporters in a tasting panel is also a good way of making
them feel valued and their abilities respected.
‘Control’ samples of the optimum character required
should also be retained and compared to future production to
ensure there is no gradual ‘drift’ in quality or style. As well
as organoleptic assessments, gas chromatography analysis
can be invaluable to ensure that all batches of spirit meet
80
Spirits production
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The Microdistillers’ Handbook
Chapter Four
Financing a distillery
The business and products 83
Sales and marketing 84
Obtaining a licence to rectify or distil 87
Alcohol Wholesaler Registration Scheme (AWRS) 95
Accounts, records and duty payments 100
CASE STUDIES
Fulton 96
Allen Associates 102
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Financing a distillery
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The Microdistillers’ Handbook
84
Financing a distillery
Staffng
Clarify staffing requirements in production, sales, marketing,
finance and administration, and outline recruitment and training
plans with costings and timescales. Compare the efficiency of
your staff with those of competitors, in terms of sales, salaries
and retention rates. Staff members should be motivated and
incentivised. Stress your own commitment to the business by
revealing your financial investment.
Operational activities
Detail your operational equipment, noting its value, its life
expectancy and the need to upgrade or expand. Similarly,
consider the property in which your business is based. Is it an
extension of an existing agricultural or brewing enterprise? Is there
scope for expansion on the present site, or would expansion
necessitate a move? Are there specific advantages or disadvantages
to the premises in question? How do you select and monitor
suppliers of key ingredients such as cereal, NGS, bottles
and closures?
Reassure readers of your business plan that reliable and
flexible management information systems are in place, regarding
sales, accounts and stock control. A reliable IT system is essential.
Include details of regulatory and quality standards to which the
business conforms.
Financial forecasts
For an existing business, the plan should include information
relating to trading during the past three to five years, but for start-
up businesses without such data it is a case of providing forecasts
for the same period going forwards.
Provide profit and loss, cash flow and sales projections, and
in some cases balance sheet forecasts may also be required.
Back up the projections with your reasoning behind these
figures to reassure readers that this is not just wishful thinking
or numbers plucked out of the air. For example, if the business
arena in which you operate is becoming increasingly competitive,
then it may be necessary to predict narrower profit margins than
might otherwise be the case. Always be realistic about the figures
you provide.
Detailed financial forecasts are best included in an appendix to
avoid cluttering the main pages of the plan. Include anticipated
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The Microdistillers’ Handbook
86
Financing a distillery
Responsibilities
The Notice explains that “You must exercise control over all aspects
of your spirits production including:
The physical security of your premises, plant or vessels
The security of spirits produced
Accurately accounting for the spirits produced
e
Rendering returns on time
Examining losses and identifying their cause
Investigating any irregularity at your premises
Implementing and monitoring reasonable and effective
measures to prevent any loss of dutiable spirits
You should make sure your procedures and records for
production and stock control take these aspects into account.”
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The Microdistillers’ Handbook
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Financing a distillery
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The Microdistillers’ Handbook
Security
As the licence-holder, you are responsible for the security of the
spirit until duty is paid. HMRC will check to make sure your security
systems protect the revenue. You must pay duty on any losses you
can't explain.
“The list gives some ideas of what we would normally expect.
Regularly
Area Security must include
demonstrated by
Perimeter and building security that
Distillery site deters casual entry and identifies Security reviews
signs of forced entry
90
Financing a distillery
In production
Excise Notice 39 states that “Distillation periods are accounting
periods for the manufacture of spirits. You must carry out
all manufacturing in these periods. A period is usually between
a week and a month. You must specify the start and finish
dates of each period in your records. If you manufacture
more than one class of spirits, you must specify separate
periods for each class of spirit. These periods may
run simultaneously.
Every distillation period should be clearly identifiable in your
business records.
Until you've taken separate accounts, you mustn't mix spirits
produced in different periods.”
Eight ‘classes of spirits’ are identified by HMRC, namely:
1) Malt spirits
2) Grain spirits
3) Neutral spirits of agricultural origin
4) Neutral spirits of non-agricultural origin
5) Spirits produced from beer
6) Spirits produced from wine or made-wine
7) Spirits produced from cider or perry
8) Other
Notice 39 states that “You may take duty-unpaid samples of wort,
wash, feints and spirits for the purposes of:
Quality control
Strength testing
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The Microdistillers’ Handbook
Scientific research
Reference
Other production-related analysis
However, you must:
Note the samples taken in your business records
Keep the quantity to the minimum necessary for the purpose
Label the samples as ‘sample’
Label samples of spirits, ‘duty-unpaid sample — not for sale’
Destroy samples no longer required
Keep records of their use and disposal
You may receive and store in duty suspense, wash and feedback
from the premises of a:
Registered cider maker
Licensed wine producer
Registered brewer
providing your premises are covered by an excise
warehouse approval.”
Warehousing
Regulations state that “You must immediately warehouse all
spirits once you've established the quantity produced (known as
‘taking account’). Distillers may store spirits produced in their own
distillery, known as a ‘distillers warehouse.’
Excise duty
“Excise Duty becomes chargeable following distillation
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Financing a distillery
Gl
Certain UK spirit drinks, for example, Scotch whisky, are
protected under EU legislation as a product of ‘GI,’ or
‘Geographical Indication,’
HMRC is the designated verifying authority for UK spirit drinks
with a protected GI. If you produce a UK GI spirit drink, you must
apply to HMRC for verification of your processes.
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The Microdistillers’ Handbook
Rectifer Compounder
Ineeda
. compounder and keep solely for consumption on . the premises and
licence? : :
a still to carry out either
: :
coolers’ ; that are made-wines as defined
process by the Alcoholic Liquor Duties Act 1979,
ingredients (for example, essences, bitters)
for incorporation in alcoholic liquors (either
in their manufacture or as a mixer)
perfumes
need?
94
Financing a distillery
95
CASE STUDY | Fulton
CASE STUDY
Fulton
www. fulton.co.uk
96
CASE STUDY [| Fulton
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Duty stamps
The UK Duty Stamps Scheme applies to bottles and other retail
containers of spirits, and wine or made-wine with an alcohol by
volume of30 percent or more, in bottle sizes of 35 centilitres or more.
By law, if you import or make these types of products that are
intended for consumption in the UK, you'll need to affix a duty
stamp or include one on your label. It’s free to register and get
duty stamps.
The duty stamp is available in two formats:
A product specific stamp (referred to in the law as a type A stamp)
to be attached directly to the bottle, known as free-standing stamps
A stamp (referred to in the law as a type B stamp) incorporated
into bottle labels and printed by the industry’s own label printers,
known as label stamps.
Each free-standing stamp has a unique number printed on the
face. This number contains a letter identifier, which denotes the
product type. For example, W50000012345 is a free-standing stamp
for whisky/whiskey. Free-standing stamps are available showing
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Financing a distillery
Brandy (B)
Other product (P)
The product type on the free-standing stamp must refer to the
description of the contents of the bottle to which it’s attached.
Each separate label design features a unique reference number to
identify the person to whom it was issued.
Applications
Firstly, you need to register with HMRC for the scheme, and you
can do this online. Alternatively you can download from www.gov.
uk/guidance/duty-stamps-scheme-how-to-register.
You'll need to provide:
Your name and address
Your legal status
Your UK VAT registration number (if you have one)
Your Excise ID number (if you have one)
How many free-standing stamps you expect to order in the
next 12 months (if any)
How many free-standing stamps you would have needed in
the previous year
The name and address of the label printer(s) that you'll use
for label stamps.
HMRC will acknowledge receipt of your application and issue a
registration letter to you, containing your registration number. When
you've received your registration number you can request the stamps.
With your registration number, you'll receive details of HMRC’s
label stamps design contractor. You'll need to order the design
specification for the label stamp from them, including:
Your duty stamps registration number
The number of copies of the design specification that you need
Details of where the design specification should be delivered.
The contractor will confirm receipt of your order and arrange for
the design to be sent to you.
Shortly after your registration number arrives, you'll receive
another letter from HMRC with website details of the contractor
that supplies freestanding stamps. You can order your stamps
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The Microdistillers’ Handbook
Other information
Labels that incorporate duty stamps must also show one of
the following:
In an easily legible form, a brand under which it’s intended that
the alcoholic liquor will be sold by retail
The trademark of the product contained in the bottle
Details of the producer
Details of the business marketing the product
It is also a legal requirement to provide a batch core number that
allows traceability back to the spirit batch that was bottled. While
not a legal requirement the distiller should retrain a production
sample labelled so that it can be traced to the bottling batch. These
are invaluable should any dispute arise with a customer over the
bottled contents.
100
Financing a distillery
101
CASE STUDY | Allen Associates
CASE STUDY
Allen Associates
www.allenhpe.co.uk
102
CASE STUDY | Allen Associates
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104
Chapter Five
Routes to market
Distance selling 106
Marketing and social media 109
Distribution 115
Rules on labelling and packaging 116
Exporting 121
CASE STUDIES
East London Liquor Company 112
Ballindalloch Distillery 118
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The Microdistillers’ Handbook
Distance selling
‘Distance selling’ — whether by email/website, phone or mail order
can be an invaluable source of income for the microdistiller,
establishing a direct connection with individual consumers
that may lead to brand loyalty if transactions are fast and friendly.
There is also, of course, the added advantage of no ‘middleman’
to take a percentage, and you know exactly what experience
customers have enjoyed because you have been responsible
for it.
Inevitably, there is legislation surrounding distance selling,
principally intended to protect the public from unscrupulous or
inefficient traders, and it pays to know the law before making sales
in this way.
It is important to comply with the Consumer Contracts
Regulations and the Consumer Rights Act, in addition to which, if
you are selling electronically — by email or website — you must also
comply with the ecommerce regulations, regardless of whether
your customers are individuals or businesses.
According to www.which.com:
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Routes to market
Before the sale is made you must supply the following prior or
pre-contract information:
Your business name and, if you require payment in advance,
your postal address
A description of the goods or services and, if you are supplying
them on a continuing basis, the minimum term
The price (including taxes) and how long the price and any
special offer will remain valid
Details of any delivery costs
How payment can be made
The arrangements for delivery (or performance of the service);
Information about cancellation rights
Whether you will supply a substitute if the goods or services
are not available (and, if so, confirmation that you will meet
the cost of returning unwanted substitutes)
e If the sale is of
digital content, additional information about,
for example, its functionality and compatibility.
Durable confrmation
The following information also needs to be provided in writing
(‘durable’ confirmation):
The prior information (see above)
How the customer can exercise their cancellation rights,
including whether the contract requires them to return
unwanted goods if they cancel, and who will pay the costs of
returning those goods
e
Any guarantees or after-sales service you provide
Your geographical address for the customer to contact you
with any complaints
For contracts lasting more than one year (or indefinitely), under
what conditions the contract can be cancelled.
The confirmation information must be provided in good time -
at the latest, when the goods are delivered or the service performed.
Information can be provided by letter, fax or email, or in the original
mail order advertisement or catalogue.
Cancellation rights
Customers have the right to cancel a purchase within 14
calendar days of receiving goods or the durable confirmation
(see above), whichever is later. This ‘cooling off’ period extends to
a maximum of three months and seven working days after delivery
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108
Routes to market
What's allowed
Information included in website adverts and mail shots must
adhere to the UK Code of Non-Broadcast Advertising, Sales
Promotion and Direct Marketing (CAP code), which essentially
requires adverts to be legal, decent, honest and truthful. The CAP
code also applies to Facebook, Twitter and any other non-paid-for
online space you control (including blogs or other social media
sites such as LinkedIn).
Websites and mailshots are also covered by the Consumer
Protection from Unfair Trading Regulations. These make it an
offence to give false or misleading information about the goods
on offer, or to engage in aggressive or misleading selling practices.
If you do not have an existing relationship relating to a similar
product, you should not send unsolicited emails, SMS messages
or ‘spam’ to consumers. You must only send messages if the
consumer has previously agreed to it, for example by opting in on
your website.
Unsolicited marketing calls must not be made to individuals or
businesses who have indicated that they do not wish to receive
them, either by contract with you or by registering with the
Telephone Preference Service. If you are making a marketing call,
you must clearly state the name of your business and explain the
nature of your call at the start. Similarly, consumers may register
with the Mailing Preference Service to state that they do not want
to receive direct mail from companies with which they do not have
an existing relationship.
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The Microdistillers’ Handbook
Social media
When it comes to social media, it is important to feel confident that
you are using the medium to its maximum effect and interacting in
acredible way with your target demographic. To be effective, social
media takes a great deal of nurturing, and you should be aware
that it is likely to take up a significant amount of your time. As with
website designers, it may pay in the long run to use the services of
someone who is really clued in to the likes of Facebook, Instagram
and Twitter, though a well written, regularly updated blog on your
own website is likely to attract repeat traffic. Make it personal and
revelatory where possible — allow readers to feel that they are being
taken into the heart of the company and given privileged access
to information not otherwise readily available. Bear in mind that
this is not a press release.
110
Routes to market
111
CASE STUDY | East London Liquor Company
Case Study
East London Liquor Company
www.eastlondonliquorcompany.com
112
CASE STUDY | East London Liquor Company
Coffey still - the world’s only surviving wooden still - then aged
for three years in Bourbon casks.”
Wolpert and his team are also enthusiastic about English
whisky and are looking forward to the first release of their London
Rye later in 2018.
According to the distillers, “Each batch we’re creating is unique
in production, finish and mash bill. Primarily distillinga London
Rye, we will be launching various iterations of whisky featuring
combinations of pot and column runs and barrel finishes,
including new American oak, French oak, chestnut, ex-wine, ex-
rye and ex-Bourbon barrels.”
Wolpert’s has set out the ambition to ultimately release
100,000 bottles of whisky annually, and in relation to the 2018
crowdfunding programme he explains that the company is to
expand internationally, focusing on New York, Toronto and China,
with the ambitious aim of generating total sales worth 9.6m.
“Our production is at approximately 20 per cent capacity, so
we have plenty of room to grow,” he says. “Our whisky tastes
113
CASE STUDY | East London Liquor Company
114
Routes to market
Distribution
No matter how good your product is, all the creative work that
has been put into it will come to nothing unless you can get it in
front of as many target consumers as possible. Good distribution
is arguably more important than any other aspect of running a
microdistilling business.
Just who you decide to target depends, to a significant degree,
on the scale of production. It may be that local sales through
word of mouth and personal contact will create enough sales
opportunities to account for everything you can distil. In this case,
you can probably carry out your own distribution. All you need is
a van.
Usually, however, itis worth looking at specialist outlets beyond
your immediate locality. The off-trade may present attractive
opportunities by way of specialist wine merchants, farm shops
and gift shops, and even country houses and other properties open
to the public.
The on-trade, both locally and beyond, also offers great
opportunities to get your products in front of consumers. If they
buy a measure of your gin, vodka, whisky or sambuca in a pub, hotel
bar or restaurant there is a good chance that if they are impressed
they will, at some point, buy a bottle.
Both the on-trade and off-trade may give you the chance to host
tasting sessions, perhaps in association with other small-scale
producers from your locality.
A persuasive way of getting outlets to stock your products is to
offer them on consignment; that is leaving a certain number of
bottles with the operators without charging them and returning
after an agreed period of time to invoice them for the bottles sold.
This reduces the financial exposure of the outlet, making them
likely to be more amenable to try something new.
If your operation is of sufficient scale, you may wish to sell to
national companies that either have multiple outlets or distribute
to individual retailers. Such companies would include the likes of
Majestic Wines, Adnams plc in East Anglia and Gordon & MacPhail
in Elgin, Scotland.
Sales via the internet obviously require hands-on distribution
direct from your premises, and a key factor here is to find a
reliable, efficient firm of couriers that specialises in handling
fragile consignments.
For details of recommended distribution companies see p158.
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The Microdistillers’ Handbook
116
Routes to market
117
CASE STUDY | Ballindalloch Distillery
Case Study
Ballindalloch Distillery
www.ballindallochdistillery.com
118
CASE STUDY | Ballindalloch Distillery
quite robust, which will make an ideal after-dinner malt, and should
suit ex-sherry wood well.”
Robinson insists that there is nothing opportunistic about the
Ballindalloch distillery venture, noting that “This is not being done
on the back of the whisky boom, and no spirit will be released as
new-make, or at three years and one day old. We’re in no hurry to
release it, and we may wait for 8 or 10 years or even longer until
it comes onto the market. It will only be sampled while it is young
at the distillery ‘for discussion,’ as it were.”
When it comes to welcoming visitors, Ballindalloch takes a very
selective approach, with Brian Robinson pointing out that there
are adozen or more distilleries offering excellent ‘entry level’ tours
within a few miles of Ballindalloch, giving them the opportunity to
do something different.
“The principal public tour costs 35 per person and lasts for two
and a half hours,” explains Robinson, “so we are getting people
who are serious about their whisky, and the experience we offer
them reflects the overall Estate and its values. We also offer an
‘Art of Whisky-Making’ one-day course, for one or two people only
at a time. They turn up at 8.00am and work a full day.”
Given the specialist nature of the Ballindalloch visitor experience
it comes as no surprise that the visitor centre is the very antithesis
of ‘corporate,’ with the Long Gallery boasting a wood-burning stove,
comfortable settees and an array of portraits copied from originals
in Ballindalloch Castle, along with furniture and artefacts borrowed
from the castle.
Recalling the establishment of the distillery, Robinson notes
that “Getting a licence was time consuming. As you might imagine,
something like this is complex and you have to ensure that all the
i’s are dotted and t’s are crossed. We had regular contact with an
officer in Aberdeen, but the paperwork needed to go to numerous
offices to get the necessary sign off.
“From a practical point of view, clearly you need to demonstrate
that the buildings are suitable, security is of the requisite high
standard and that you can show that you have all the necessary
logs and equipment to be able to keep track of what you are
making. You don’t necessarily need custom software or expensive
systems in place, but whatever you use must be able to stand
up to any audit. There are also significant financial implications
with HMRC requiring, in addition to the licence cost, an up-front
payment as a guarantee against future duty liabilities.”
119
CASE STUDY | Ballindalloch Distillery
He adds that “We received our licence with days to spare before
our scheduled start date. If were to offer any advice to a new
|
120
Routes to market
Exporting
There is no doubt that exporting spirits from the UK is big business.
According to The Wine & Spirit Trade Association figures, 1.25
billion litres of spirits were exported during 2015, including 1.2
billion bottles of whisky, 204 million bottles of gin and 54 million
bottles of vodka. Since 2000, gin exports have risen by 166 per cent
in value and 73 per cent in volume.
If planning to export your spirits, take as much advice as
you can from other businesses that have already gone down
the export route. Another very useful resource is Open To Export
www.opentoexport.com, a free online information service from
The Institute of Export & International Trade, dedicated to helping
small UK businesses get ready to export and expand internationally.
One factor working in exporters’ favour is that British goods are
cheaper to import than they were a year and more ago due to the
relatively weak state of the pound at the time of writing. Having
established a thriving domestic trade, it is logical to try to replicate
that trade in other markets and thereby increase the profitability
of your business up to the point where production capacity
is reached.
When it comes to exporting, one of the key elements in
determining success is the establishment of a viable pricing
model. Production costs are at the heart of any pricing model if an
acceptable profit margin is to be achieved, and transport costs and
any applicable tariffs should also be borne in mind. For example,
while India represents a vast market for British spirits ofall kinds, a
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The Microdistillers’ Handbook
150 per cent tariff on imported spirits serves to curb the enthusiasm
of microdistillers keen to export there.
Additionally, if you are selling to an overseas distributor or
major retailer, a significant discount will be expected. As with any
pricing policy, be aware of the competition to your own product
in the export market in question. Consider not only the obvious
opposition, but relatively local or national variants that may
not immediately be apparent, but which could well affect the
attractiveness of your product.
If you are fortunate, having established a strong reputation for
your products in the domestic arena you may be approached by
overseas companies keen to import them. It is important for the
success of such a venture that the potential importer is a good ‘fit’
with your business, and nothing beats a one-to-one meeting with
key individuals to determine whether the relationship is likely to
be mutually beneficial.
The same applies if you are seeking out importers on your own
initiative. The ideal importer is one who takes delivery of stock, sells
it, deals with direct sales and ecommerce and handles social media.
Having established a route to market via an importer or major
retailer, it is important to maintain regular contact with them and
ensure that social media relating to your product in the country in
question is continually nurtured.
It stands to reason that a microdistiller cannot export to every
country in the world, due to availability of liquid, apart from the
sheer amount of time such an enterprise would take. The word
‘micro’ implies a clear limit to the amount of spirits being made. It
is therefore important to select markets that promise the optimum
return, and by ‘optimum’ we do not necessarily mean the largest
profit in the shortest time. Exporting should be seen as along-haul
venture, a marathon rather thana sprint.
France and the USA are the leading markets for Scotch whisky,
both in terms of volume and value, and Asia, Taiwan, Japan and
South Korea boast many appreciative consumers. Meanwhile,
Hong Kong has emerged as a key market for microdistilled gin,
due in part to the large British ‘ex-pat’ community there, and the
increasing trend for Chinese drinkers to switch to gin.
Relatively straightforward internet research should give you a
good sense of optimum countries to target, and optimum regions or
cities within those countries. A city with a dozen dedicated gin bars
is probably worth visiting. Similarly, monitoring social media can
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Routes to market
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The Microdistillers’ Handbook
124
Appendices
Appendix | 126
Appendix II 132
Appendix III 140
Appendix IV 144
Directory of Services and suppliers 147
Index 165
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126
Appendix |
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The Microdistillers’ Handbook
Manufacturing operations
Distillation periods are accounting periods during which you
must carry out all your manufacturing of spirits. A period is
usually between a week and a month. If you need a longer period
you should contact the Excise Helpline, by calling 0300 200 3700.
You must specify the start and finish dates of each period in your
records. If you manufacture more than one class of spirits (see
below) you must specify separate periods for each class of spirit.
These periods may run simultaneously. Every distillation period
should be clearly identifiable in your business records.
You must complete form W21 Quarterly Distillery Return —
Declaration of Materials Used and Spirits Produced, at the end
128
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+44 (0)1763 212 020 0000
to discuss your requirements.
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ROYSTON
THE LABEL EXPERTS
ooperage LTD
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hisky country and Broxburn Cooperage in the central
belt of Scotland, we are ideally situated to service the
Scotch whisky industry.
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Speyside Cooperage Ltd, Dufftown Road, Craigellachie,
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The Microdistillers’ Handbook
130
Appendix |
Notice 197 Excise Goods: Receipt into and Removal from an Excise
Warehouse of Excise Goods.
Duty
Excise duty is not normally payable until the spirits are taken
out of warehouse (for examples of the excise duty calculation for
spirits, see Notice 197), but you may be asked to pay duty on any
losses that occur at your distillery or while transferring spirits to a
warehouse, which are not due to natural wastage or for which you
do not have a valid reason. Duty is normally based on the litres of
alcohol contained in the spirits and feints less the litres of alcohol
in feints brought forward from the previous period. This is known
as the actual charge. The rate of duty on spirits is shown in Part 12,
Volume 1, of the integrated Tariff of the United Kingdom which
can be found either on www.hmre.gov.uk or by phoning the Excise
Helpline, 0300 200 3700.
If the amount of spirits produced is not what you expected
you should investigate the reasons why this has happened. Your
business records should show the steps you have taken to look
into the matter and your findings. If, having completed your
investigations, you have found no satisfactory explanation for the
loss, then you should provide a written explanation of what has
happened. HMRC may assess for duty on the loss.
131
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132
Appendix II
Record keeping
Record-keeping requirements are laid down in Notice 206 Revenue
traders records. All records must be permanent and legible and
must show details of all excise goods received, stored in and
removed from the warehouse. Your stock accounts must show:
e
A full description of the goods (including age and date of
first warehousing for spirits).
e The current location of goods in the warehouse.
133
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134
Appendix II
135
The Microdistillers’ Handbook
Financial guarantees
An approved guarantor (for example, a financial institution) must
undertake to pay HMRC in the event of a chargeable loss where
the person liable fails to pay. Authorised warehousekeepers should
contact the Financial Securities Centre (FSC) for further details about
applying for a premises guarantee. Guarantees are the only form of
security acceptable to HMRC. Only companies approved by HMRC
may act as guarantors. Most banks and insurance companies have
this approval. The cost of maintaining the guarantee is commercial
a
<100,000 Nil
25 per cent of
>400,000 but <41m
potential duty
1 per cent of
>25m but <100m
potential dury
>100m 1m
136
Appendix II
The level of
If the principal has And HMRC has security is
reduced
137
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138
Appendix II
139
The Microdistillers’ Handbook
General information
You may remove goods from an excise warehouse for:
home use on payment of duty (sometimes referred to as
‘released for consumption’).
dispatch under duty suspension to other approved UK
warehouses, including those on the Isle of Man.
dispatch under duty suspension to approved persons or
premises in other EU Member States.
export to non-EU countries in duty suspension.
entitled miscellaneous removals.
This list is not exhaustive. You should contact HMRC
before removing goods from the warehouse for any
other purpose unless we make a specific reference
to that purpose in this notice or in your approval.
You must observe certain rules before removal:
unless HMRC has agreed otherwise, take account
of the goods to be removed and carry out any
necessary examination.
write the goods out of your stock account.
ensure that duty is paid or accounted for on removals for
home use.
make sure that you supervise and check the removal is
accurate before the goods leave the warehouse.
In your own interests you should carry out sufficient checks
to confirm that all your customers are genuine traders who
are aware of their responsibilities in respect of excise goods.
You must individually record all removals for stock return purposes
and keep a schedule of different types of removals. If HMRC has
restricted your approval to specific types of removals (for example,
repacking operations and returning the goods to the original
supplying warehouse), you may ask to remove goods for a different
purpose, such as exports, by asking for a variation to your approval.
The procedure for obtaining a variation is detailed in Notice 196. If
you remove goods for purposes other than those in your approval,
HMRC may revoke your approval.
All warehouses approved to store UK-produced whisky
140
Appendix Ill
141
The Microdistillers’ Handbook
Deferment of duty
To apply to defer daily payment of excise duty and make monthly
direct debit payments, follow the guidance set out in Notice 101
Deferring Duty, VAT and Other Charges. Before your application is
approved, you must take out a guarantee to cover your total monthly
liabilities for the particular category of duty or VAT concerned. If
you repeatedly exceed your guarantee level or deferment limit, your
duty deferment facility will be suspended and may be withdrawn.
If this happens you will be asked to make immediate cash payment
and you will not be able to remove any goods until your payment
has been received by the NWPU. You can provide supplementary
guarantees to cover liabilities in periods of greater trade.
For all removals from your warehouse under deferred duty
arrangements, you must make sure that the NWPU receives
completed
W5D and W6D forms for all that day’s removals no later
than the end of the following working day, unless HMRC has agreed
scheduling arrangements. HMRC will confirm receipt by returning
astamped copy of the form, but the return of the copy only means
that HMRC has received the form. In your own interests you may
wish to delay removing the goods from your warehouse until you
are sure that your deferment account has been debited.
142
Appendix Ill
143
The Microdistillers’ Handbook
The Law
You will find the main primary, secondary, and European
legal provisions governing the contents of HMRC
Notices in:
e The Alcoholic Liquor Duties Act 1979 (ALDA)
e The Customs and Excise Management Act 1979 (CEMA)
144
Appendix IV
Contacting HMRC
In most cases you should be able to find the information you need
on the HMRC website, www. hmrc.gov.uk. If you cannot find the
answer there, your first point of contact should be the Excise
Helpline on 0300 200 3700.
If you have a problem with the EMCS registration and enrolment
process, contact the EMCS Online Services Helpdesk on 0300 200 3701.
Contact details for other teams or offices mentioned in this
Notice are:
145
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146
Directory f services & suppliers
Please note: The following list is as complete as we could make it
but not exhaustive, and we apologise to any providers of supplies
and services that have been missed out. Many of the firms listed
offer services and supplies in more than one category, but space
prevents us from listing each company more than once. It is
therefore always worth a thorough check of their websites to see
just how wide and varied their activities are. If you would like to
be listed in the next edition please email [email protected]
147
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148
Directory of services and suppliers
149
The Microdistillers’ Handbook
150
Directory of services and suppliers
151
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152
Directory of services and suppliers
153
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154
Directory of services and suppliers
155
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156
Directory of services and suppliers
157
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158
Directory of services and suppliers
159
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160
Directory of services and suppliers
161
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162
Directory of services and suppliers
163
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164
Index
index
A Golden Promise 61
Absolut 11 ‘heritage’ varieties 61
Adephi Distillery Ltd 7 kilning 68
Adnams 19, 57, 62, 63, 64, 65, malting 56, 61-62, 68-69
Minstrel 61
74, 96-97
advertising 111 steeping 68
advice see trade associations unmalted barley 56
Alcohol Wholesaler yield 61
barrel ageing see casks
Registration Scheme (AWRS)
Beam Suntory Inc 21
95, 98-100
alcoholic strength, measuring Beefeater 11, 46
and recording 92, 129-130, Bimber 55
138-139 biomass plant 7, 8
alembic 2, 55 Black Cow 18
Allen Associates 40-41 Blackford 56
boilers 44-45, 47
Anderson, Chris 41
Anheuser-Busch InBev vi, 20 Bombay gin 53
Anjou, Miguel d’ 119 Bombay Sapphire 11, 46, 74
‘bonded warehouses’ 135,
apples 73
137
Arbikie 14, 18, 19, 51, 57, 63,
64
Born in the Borders 20
Ardnamurchan 7-8 botanicals 14, 31, 35-36, 53,
Aristotle 2 63, 64-65, 74
Asahi Breweries 20 blending 36
botanical ‘basket’ 46, 49, 73,
authenticity 8, 9, 84
74
consistency 15
Bacardi 11 definition 34
Bailey's 64 foraged 15, 17
Bain, Mike 76-77 popular botanicals 34
Ballantine’s 10 steeping 36, 46, 49, 73
Ballindalloch 50, 112-114 vapour infusion 36, 46, 49,
Balvenie 68 73
barley 56 bottling
disease resistance 61 bottle design 78-79
closures 79, 123
165
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166
Index
167
The Microdistillers’ Handbook
168
Index
Glasgow Distillery 65
Glen Grant 4
Gammell, Matthew 52-54
Glenfarclas 48
gas chromatography analysis
Glenfiddich 4, 10
40, 80-81
Glenlivet 4, 10
Geographical Indication (GI)
status 90, 93 Glenmorangie 4
Gordon, Alexander 6
gin
alcoholic strength 31, 32, Gordon's 11
74, 77 grain brandy 29
botanicals see botanicals grain spirit 28-29
cask finishing 17, 64-65, ‘grain to glass’ products 56,
103
69
definitions 31-32, 33 grain whisky 3, 4, 56, 57, 62
distilled gin 31 Great British Vermouth 18
exports 10-11 grist 69
flavoured gins 14, 18
history of 5-6
London gin 31-32 health warnings 116-117, 123
Hendrick’s 11, 46, 74
Navy Strength gins 14
Heriot Watt University,
rye gin 63
sales volume 11 Edinburgh 42
sloe gin 33 Hicks & Healey 20
Gin Act (1736) 3, 6 Highland Park 68
Gin Act (1751) 6 Hills, Tom 102
historic buildings 8-9
gin distilleries
case studies 15-17, 35-37, history of microdistilling
52-54, 102-103 12-14, 18
equipment see equipment geographical diversity 13
setting-up costs 9 licensing 12-13
The Gin Guild 23 microbrewing, influence of
12
‘Gin Lane’ (Hogarth) 6
gin making 43, 46, 73-74 product diversity 13-14, 18
botanicals see botanicals HM Revenue & Customs
(HMRC)
compounding 43, 74
distillation 73-74 Alcohol Wholesaler
recipe development 63 Registration Scheme (AWRS)
rectification 74 95, 98-100
business plan requirement
gin revolution vi, 54
83
gin schools 43
contacting 145-146
169
The Microdistillers’ Handbook
170
Index
171
The Microdistillers’ Handbook
172
Index
warehousing 133-134 Ss
rectification 4, 74, 94 SABMiller 20
rectifier’s licence 94 Sacred Spirits Company 14,
rectifying columns 55, 72, 73 18, 49
reed bed systems 58 St Austell Brewery 19-20
remittance warrants 141 Salcombe Distillery 43
Rhodes, Ryan 77 sales
thubarb gin 14, 18, 77 on consignment 115
Roberts, Gareth 7-9, 38 direct product sales 84
Robertson, Jain 41 internet sales 110, 115
Robinson, Brian 112-114 off-trade 115
routes to market 84, 106-115 on-trade 115
distance selling 106-109
wholesaling 95
distribution 115 sambuca 18
exports 121-124 samples, duty-unpaid 129
labelling and packaging Scotch whisky
rules 116-117, 121 casks 65
marketing and social definitions 27-28
media 109-111
history of 3-5
rum 3, 18
Lowland and Highland
alcoholic strength 75
whisky making 3
ingredients see raw qualifying as 13
materials Scotch Whisky Association
rhum agricole 75
(SWA) 24, 147
rum making 57, 74-75, 103
Scottish Distillers
cask ageing 75 Association (SCDA) 22
compounding 75 Scottish Enterprise 86
distillation 74, 75 screw caps 123
infusion 75
security of premises and
maceration 75
plant 90-91, 128
percolation 75 services and suppliers
white rum 75
(directory) 147-164
rye gin 63 Sipsmith 12-13, 21, 44-45, 51
rye vodka 63, 96 sloe gin 33
rye whisky 14, 62, 72, 77, 96, Smirnoff 11
97
Smith, Martin 40
social media, engagement
with 84, 97, 110, 122-123
spent lees 59
173
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174
rye vodka 63, 96 Warner Edwards 18, 55
vodka making 57, 72-73, 103 wash 47, 48, 70-71, 92
distillation 72-73 duty-unpaid samples
fermentation 72 91-92, 129
mashing 72 measuring 92, 129-130
milling 72 washbacks 47, 70
recipe development 63-64 stainless steel 47, 70
wooden 47, 70
W waste disposal 58-59
warehousing 92, 127, 130, draff 59, 70
132-139 pot ale 59
allowable operations reed bed systems 58
137-138 spent lees 59
authorisation applications water 57-58
132-133 process water 58
determining alcoholic waste water 58-59
strength and volume Water Abstraction Licence
138-139 58
excise warehouse returns websites 84, 109, 110
139 wheat 57
financial guarantees whey, fermented 18
136-137 whisky
general storage and alcoholic strength 13, 28,
distribution warehouses 62-63, 71
(‘bonded warehouses’) blended 4, 5, 27-28, 62-63
135, 137 definitions 27-28
HMEC visits 132 exports 10
Notice 196 (HMRC) 132-139 grain whisky 3, 4, 56, 57, 62
Notice 197 (HMRC) 140-143 history of 3
notifiable losses 135 ingredients see raw
premises guarantee 136, materials
137 minimum maturation
record-keeping 133-134 period vii, 13, 14
removal of goods from provenance 4
140-142 rye whisky 14, 62, 72, 77,
stock marking and control 96, 97
134-135 Scotch see Scotch whisky
third-party warehousing 89 single malts 4-5, 10, 61-62
trade facility warehouses ‘Spirit Drink’ 13-14
136, 137 triple malts 62, 97
175
The Microdistillers’ Handbook
UK sales volume 10
whisky/ whiskey 3, 28
whisky distilleries
case studies 66-67, 96-97,
102-103, 112-114,118-120
equipment see equipment
setting-up costs vii, 9
whisky making 68-72
case studies 76-77
cutting the spirit 71-72
distillation 71-72
fermentation 70-71
malting barley 56, 61-62,
68-69
mashing 69-70
milling 69
recipe development 61-63
wholesaling 95
William Grant & Son Ltd 4,
10, 11, 21, 49, 74
Winchester Distillery 35-37
Wine and Spirit Trade
Association (WSTA) 10, 25,
86
Wold Top Brewery 20, 66
Wolpert, Alex 102-103
worm tubs 71
Worshipful Company of
Distillers 23
wort 47, 69-70, 92
duty-unpaid samples
91-92, 129
measuring 92, 129
Wrecking Coast 56
Y
yeast 47, 57, 62, 70
176
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