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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

Copyright Paragraph Publishing 2020


Cover images Anthony Cullen

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 )

Editor: Gavin D. Smith


Production Editor: Phoebe Calver
Production Manager: Anita Johnson
Design: Tim A’Court, Mandy Farnell & Paul Beevis
Commercial Manager: Joanne Robertson
Publisher: Damian Riley-Smith

Printed in Great Britain by Page Bros Ltd.


THE
MICRODISTILLERS'
HANDBOOK

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

our business. Making something, putting it in an expensive


barrel for several years and seeing what you get, has been
very exciting, if a little daunting. My ability to be patient has
developed immensely. I can see English whisky becoming a
style all of its own, even having its own category in stores and
within competitions. This from a start of not much more than
a decade ago, when the first new whisky distillery in England
opened in Norfolk.
Our focus on the finest local ingredients, an obsessive team
and the desire to innovate and create has ultimately led to
some award-winning drinks, but most importantly ones that
our customers enjoy and choose to drink.
As we face unchartered times the importance of doing the
right thing for the right reasons is ever more appropriate.
Business should be a force for good and when you can be paid
to do what you love to do, it shows.

John McCarthy, Head Distiller, Adnams


September 2020
The Microdistillers’ Handbook

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

Not that some of the new wave of UK brewers were interested


in complying with the criteria for ‘real ale.’ Rather, they were
keen to innovate in any way they could discover, using many
varieties of hops and creating entirely new beer styles as well
as reviving old ones.
Setting up a microbrewery is not particularly expensive,
and licensing relatively easy to achieve, whereas the idea of
creating a distillery appeared to be altogether more financially
unviable, and HM Customs & Excise - now HM Revenue &
Customs — was not in the business of licensing what might be
seen almost as ‘hobby’ stills.
Today, the legislative culture has changed, and though
there may still be many hoops to jump through to obtain a
distilling licence and adhere to HMRC protocols, there is an
acceptance among legislators and their representatives that
microdistilling is essentially a force for good.
Similarly, there has been a realisation that creating a
small-scale gin distillery, using bought-in neutral spirit,
may not actually break the bank. Much depends on the
property in which you plan to house the operation, and this
is where farmers and brewers bent on diversification tend to
score highly, as they usually have space available within
existing buildings.
Needless to say, starting from scratch can be an expensive
undertaking, particularly if you decide to take on an
aesthetically pleasing but potentially wallet-emptying
old building and convert it for use as a distillery. An
anonymous industrial estate unit will be much cheaper,
but hardly conducive to conducting guided tours or
hosting masterclasses.
If you plan to make whisky, then not only do you have to
factor in the compulsory three years minimum maturation
period before you can sell it as ‘whisky,’ but also the additional
costs associated with kitting out a distillery with a mash tun
and fermentation vessels, as well as stills. Buying decent
casks in which to age your spirit is also a significant expense.
A conservative estimate for setting up a small-scale whisky
distillery would probably be in the region of 150,000, and
many entrants to the business have spent well into seven
figures. Investment in whisky stocks is likely to be ten times
the cost of the distillery.

Vil
The Microdistillers’ Handbook

Despite financial implications, there is no sign that the


recent growth in microdistilling start-up ventures in the UKis
beginning to slow down. Optimism remains strong, and most
encouraging of all, while many new breweries have opened
up only to close soon after, to date the microdistilling sector
has seen very few casualties.
No matter how much you intend to invest in your
microdistilling venture, it is important to take good advice
at every stage of your journey, and in the pages ahead we
try to steer would-be distillers in the right direction in terms
of rules, regulations, requirements, ingredients, business
administration, selling and the myriad other aspects of
running a successful microdistillery.
If you do decide to take the plunge, then enjoy yourselves,
hope that hard work and wisdom pay off, and most importantly
of all, create some wonderful, individualistic spirits along
the way.

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

ccording to The Oxford English Dictionary, ‘distillation’ is


“The action of converting any substance or constituent
of a substance into vapour by means of heat and
condensing this by cooling into the liquid form, by
means ofan alembic, retort and receiver, ora still and refrigeratory,
the extraction of the spirit essence or essential oil of any substance
by the evaporation and condensation of its liquid solution; and, in
a more generalised sense, the operation of separating by means
of fire, and in closed vessels, the volatile distillation parts of
any substance from the fixed parts, in order to the collection of
the products.”
In the 4th century BC Aristotle wrote in his Meteorology that
“Seawater can be made potable by distillation as well and wine
and other liquids can be submitted to the same process,” and that
process may date back as far as 2,000 BC.
Early distillation — to create medicines and perfumes rather than
alcohol for consumption — is credited to China, Mesopotamia and
Egypt, though there is evidence that the Chinese were distilling a
beverage from rice by 800 BC, and it is thought that the Egyptians
understood distillation in the time of Diocletian (AD 284-305).
Some sources consider that the alembic still was invented around
that time by Maria the Jewess, or Zosimo of Panopolis, an Egyptian
alchemist and his sister Theosebeia, who invented many stills and
reflux condensers.
Another school of thought suggests that the Arabians devised
the alembic during the eighth or ninth centuries. ‘Alembic’ is a
European corruption of ‘al ambic’ the term used by the Arabians,
and based on the Greek word ‘ambix,’ — a vase with a small opening
in it. The Arabians were probably the first to cool the tube leading
from the still-head with water, making distillation significantly
more efficient and predictable, and a further advance came in
the form ofa coiled cooling pipe, devised in the 11th century, and
responsible for very effective conversion of vapour back into liquid.
The art of distillation is thought to have been introduced into
Europe around 1150 by the Moors of Spain, though so much of
the early history of distillation remains essentially a matter of
conjecture, and other historians prefer the theory that the Turks
took distillation to Europe during invasions in the 14th and 15th
centuries. The Oxford English Dictionary offers the first English
attestation of the term ‘distillation’ in 1390.
From their medicinal origins, spirits came to be seen as ameans
What is distilling?

of promoting relaxation and general well-being, and were used at


social gatherings and festivals. The Latin term ‘acqua vitae’ — water
of life - became ‘eau de vie’ in French and in Scots Gaelic ‘uisge
beatha’ - ultimately anglicised to ‘whisky.’
Unsurprisingly, distillers worked with whatever fermentable
substances were most readily available to them, and so the French
developed cognac from grapes, the inhabitants of the Caribbean
used sugar cane to make rum, and in Scotland and Ireland grain
was turned into whisky, or whiskey. The first reference to Scotch
whisky occurs in the Exchequer Rolls for 1494/95, where itis stated:
“Eight bolls of malt to Friar John Cor wherewith to make aqua vitae.”

Scotch and Irish


The debate about whether Scotch came before Irish whisk(e)y or
vice versa remains hotly debated. It is recorded that in 1276 Sir
Robert Savage of Bushmills fortified his troops prior to battle with
“a mighty draught of uisce beathe,” but on closer examination it
becomes clear that the fortification came in the form of wine or
beer. However, Queen Elizabeth I was thought to have had a taste
for Irish whiskey, probably being introduced to the spirit by Sir
Walter Raleigh, who recorded in 1617 receiving in County Cork “a
supreme present of a 32-gallon cask of the Earl of Cork’s home-
distilled uisce beatha.”
Back in Scotland, there was a clear split between Lowland and
Highland whisky making, with many pieces of excise legislation
intended to curb illicit distillation in the Highlands, where distilling
operations tended to be smaller than those in the Lowlands, and
the remote nature of much of the countryside made concealment
of whisky-making without a licence relatively easy.
The development of major commercial distilling in the Scottish
Lowlands accelerated following the passing of the Gin Act in
1736, which imposed heavy excise duty on gin in an effort to curb
drunkenness, while exempting whisky. However, Lowland whisky
tended to be of poor quality, and much was actually exported to
England to be rectified into gin.

The Coffey revolution


One of the most significant developments in the history of Scotch
whisky was the creation of the continuous still, patented in 1827
by Robert Stein, and simplified and made more efficient by Aeneas
Coffey, who patented his version in 1830.
The Microdistillers’ Handbook

The Coffey still allowed unmalted grain to be distilled into alcohol


on a far larger scale than was possible in a traditional copper pot
still, and the continuous nature of the process also contributed to
the volumes that could be produced. Not only did the Coffey still
turn out large quantities of comparatively cheap, high strength
spirit, it was also extremely consistent, unlike that distilled in many
Highland potstills. Initially, much of the comparatively characterless
spirit produced in Scotland's Coffey stills was exported to England
for rectification into gin, as with some Lowland malt whisky, but
mid-century legislation created the opportunity for a new form of
Scotch whisky which would take the world by storm.
The 1860 Spirits Act allowed malt and grain whisky ‘under bond’
to be blended for the first time, opening the way for merchants
such as Andrew Usher of Edinburgh effectively to create an entirely
new drink. Blended Scotch whisky offered an easier drinking and
more consistent alternative to pot still whisky, and in the hands of
a group of buccaneering entrepreneurs such as James Buchanan,
Tommy Dewar and Peter Mackie, blended Scotch became a
global phenomenon.

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?

as single malts grew in popularity, so standard blends became


associated with an ageing consumer profile, particularly in the UK.
One innovation that helped increase the popularity of single
malts was the introduction in 1987 of The Classic Malts by DCL
successor company to United Distillers. This comprised six single
malts, chosen to represent different geographical regions of
production, and the stylistic variations associated with them.
More recently, the world of Scotch whisky has seen a proliferation
of new distillery development, much of it associated with the
adventurous, experimental, microdistilling, provenance-rich
sector of the market.

The gin craze


Parallel to the distillation of whisky in Scotland — and at times in
England and|)Wales — gin-making has long been a second extremely
important strand of the British spirits industry. Like whisky, the
drink had its origins outside Britain, with the first records of gin
production dating from Holland in the early 17th century, though
other sources suggest it was being made in Italy prior to that
time. Originally sold for medicinal purposes, gin was flavoured
with juniper to give it a more attractive flavour, and the juniper
contributed to its medicinal effectiveness.
During the Thirty Years’ War in Europe (1618-48) British troops
were given measures of gin known as ‘Dutch courage’ prior to
engagement with the enemy, which led to a developing taste for it
back in Britain. Distillation of gin went from something ofa cottage
industry to a major commercial enterprise, though the quality of
the spirit was often far from high.
-
The arrival of King William ITI “William of Orange’ — on the
English throne in 1689 led to gin’s greatest period of popularity, as
he tooka very positive attitude to the production of spirits. Anyone
could distil gin on the basis of putting out a public announcement
and waiting for ten days before commencing production. Soon gin
consumption exceeded that of beer and ale, and workers would
even be paid part of their wages in gin.
Distilling and retailing licences became compulsory in 1729,
and a duty of two shillings per gallon was imposed on gin. This did
nothing to reduce the amount of poor quality gin being consumed,
however, and it is recorded that during 1730 London alone had
more than 7,000 retail premises selling nothing but spirits.
Abuse of gin by the poor was now a major social problem, and
The Microdistillers’ Handbook

one most famously recorded by William Hogarth in his ‘Gin Lane’


engravings, depicting a descent from propriety to insanity and
death. It should be noted, however, that Hogarth was commissioned
to create ‘Gin Lane’ by members of the brewing industry, keen to
demonise the principal competition to their own products.
The establishment’s response to what was sometimes known as
‘The Gin Craze’ was The Gin Act of 1736, which raised duty to 1
per gallon and the cost of a retailing licence to 50. The result was
a dramatic rise in the cost of legally distilled gin, and widespread
riots broke out when the Act was imposed.
The legislation was largely ignored by distillers, however, and in
excess of 11m gallons of gin were produced in London each year
during the late 1730s, which was said to account for 14 gallons per
adult male! In the six years following The Gin Act, output rose by
almost half, but only two new licences were applied for.

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. |

believe that barley selection, the way it is malted, then mashed


and fermented is crucial to both brewing and distilling. Our 15
years of experience in converting the starch into fermentable
and usable sugars has been invaluable. Attention to detail in
equipment installation, hygiene and quality control are paramount
in maintaining consistency.
“Putting robust operating procedures in place and
recording everything means that if something feels out of place
we stand a chance of understanding why. Working with HMRC for
a long time also gives us a respect for the work they are obliged
to do and although distilling regulations are different to brewing,
the requirements are the same. Initially, the requirements for
a whisky distilling licence are much more stringent than for
brewing, but in all cases accurate record keeping is a must
and a given.”
The Mellors decided not to build their distillery on the farm,
but to set it up in a small industrial estate in the local village of
Hunmanby, alongside a busy road and ideal for attracting visitors.
“Monday and Friday are ‘wash days’ in the brewery,” says Tom.
“The rest of the time, we make beer. Having produced the wash,
we tanker it and quantities of water from the farm down to the
distillery and every mash is made up of 5,000 litres of wash. This
gives us a yield of 600 litres per distillation, so we fill around a
dozen casks per week.”
CASE STUDY | Spirit of Yorkshire

In addition to a pair of copper stills made by Forsyth of Rothes


in Scotland, the distillery is also equipped with a four-plate column
still. AS Tom’s business partner David Thompson explains, “The
column still gives huge reflux if we purify the make coming off the
spirit still though it. It gets up to 92 per cent abv but keeps its
fruitiness. It gives us a point of difference to other distilleries, and
at present we are working 50:50 on this and spirit made entirely
in the pot stills.”
The whole operation was developed very much ‘under the radar’
until the distillery opened to the public at Easter 2017, boasting
a coffee shop with viewing windows onto the stills, a retail area,
and distillery tours.
Tom says that, “Visitor centre numbers are growing weekly and
are ahead of expectations. As each holiday period comes upon
us (this coastal area is very dependent on tourism) we get more
and more people through both the shop and coffee shop. We
hold regular events, including a music night every month, and
these are developing a loyal following. In the coffee shop we’re
pleased to see a number of regulars each week, as well as new
faces, too.”
When it comes to offering advice to would-be distillers,
Tom is blunt, “Do it properly and don’t bodge! Seek out and
be prepared to pay for the best advice you can. We used the
renowned consultant Dr Jim Swan from the very start in 2012
until his untimely death in February 2016. Make sure you set it
up and run it as a business, not as a hobby. Whisky making from
scratch requires time, patience, money, nerve and a few sleepless
nights! Don’t skimp on brand strategy and high-quality design
and make sure you are clear about where your product fits in the
marketplace from the first.”
The first Spirit of Yorkshire casks passed the three-year
maturation mark in early summer 2019 and the distillery released
its first single malt whisky that October under the Filey Bay brand
name, which will be used on all single malt expressions from Spirit
of Yorkshire distillery.
Filey Bay First Release (which sold out all 6,000 bottles in
less than a month), and the following Filey Bay Second
Release, were predominantly Bourbon-matured expressions.
These may be seen as the first steps to the Filey Bay Flagship
which is likely to be released in the next year. Spring 2020
saw the first ‘finished’ bottling from the distillery, Filey Bay
CASE STUDY | Spirit of Yorkshire

Moscatel Finish, and future plans include further cask


finishes. Tom says, “We’ve always aimed to create a distillery
style that is light and fruity. We’re really pleased with how our
initial releases are tasting and are very excited for what the
future holds.”
The Microdistillers’ Handbook

The structure of the spirit industry in the UK


Overview
According to the wine and Spirit Trade Association (WSTA), in 2015
the spirits industry in the UK generated 28.2bn in economic activity
and 9.8bn in sales. Taking into account duty, VAT, Corporation Tax
and income tax, it contributed 6.9bn to the public purse.
The industry was worth 4bn to shops and supermarkets, and
5.8bn to bars, pubs and restaurants. In terms of exports, 1.25bn
litres of spirits were sent overseas from the UK, with whisky
accounting for 1.2bn bottles, gin for 204m bottles, and vodka
for 54m bottles. Around 186,000 people were directly employed
in the spirits industry, with a further 110,000 employed in
the supply-chain.

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

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The Microdistillers’ Handbook

behind the UK spirits sector. A significant number of the new


distilleries developed during and since 2015 fall into the
microdistillery classification.

The history of modern microdistilling


Influence of brewing
The global microdistilling movement has at its heart a reaction
to the apparently increasingly homogenised offerings provided
by a relatively small number of international companies, much
like the microbrewing movement that preceded it, and continues
to thrive.
US microbrewing followed the lead of the British ‘Real Ale’ revival,
spearheaded by The Campaign for Real Ale (CAMRA), which was
established in 1971. The first ‘teal ale’ brewer in the USA was
probably homebrewer Jack McAuliffe, who opened his New Albion
Brewing Company in Somona County, California, in 1976. Around
that time, there were fewer than 100 breweries in operation across
the whole of the USA, but at the close of 2016, that figure stood at
a record of just over 5,000. Similarly, in the UK brewery numbers
have increased to more than 2,000, a figure last seen in the 1920s.
A significant number of US microbrewers began to expand into
distillation, and other producers joined the party, with many states
relaxing stringent regulations that had prevented the creation of
new distilling enterprises — particularly those small in scale — since
the era of Prohibition (1920-33).
In New York State, for example, 2002 saw the introduction of
relatively inexpensive licensing permits for ‘small batcl’ distilleries,
with the codicil that at least 50 per cent of ingredients used in
distillation were sourced from New York farms.
By late 2016 the total of licenced microdistilleries in the States
was in excess of 1,300, and UK microdistilling has also expanded
dramatically, rising to more than 270 operations by late 2016.
This has been in part due to the growing desire to produce spirits
on an artisan scale, opting for originality and experimentation
over conformity and scale, but also because of the fact that UK
authorities, like those across the Atlantic, have come to take an
altogether more positive attitude to microdistilling.

Licensing
It is often stated that London distiller Sipsmith was responsible for

12
What is distilling?

creating the legal environment whereby microdistilling could thrive


by successfully lobbying HMRC for a licence for a still of less than
1,800 litres in 2009. However, Loch Ewe distillery in the north-west
Highlands of Scotland had been granted a licence for two 120 litre
whisky stills six years earlier, on the basis that a loophole existed
in the regulations.
Once the licence was granted, the loophole was duly closed,
though study of HMRC’s regulations relating to the licensing of
stills reveals that the figure of 1,800 litres was never set in stone,
and the body declares that “We may consider licence applications
in respect of stills below 18 hectolitres [1,800 litres] where there
are satisfactory controls in place to protect the revenue and the
required control resources are not disproportionate to the amount
of revenue involved.”

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.

Diverse distillations - whisky


In terms of whisky, to qualify as ‘Scotch,’ spirit must meet stringent
criteria in terms of ingredients, processing and maturation, and the
EU definition of whisk(e)y specifies a minimum maturation period
of three years and a minimum strength of 40% ABV. However, even
in Scotland, a number of microdistillers have made it clear that
they will follow their own path and not necessarily produce ‘Scotch’
whisky. Indeed, some of their offerings may well have to be labelled
as ‘Spirit Drink.’
One such distillery is Lone Wolf, at Alford in Aberdeenshire, and

13
The Microdistillers’ Handbook

the distilling arm of brewing rebels BrewDog. Using American


pale ale yeast, Lone Wolf has distilled quantities of spirit from 70
per cent malted rye with 30 per cent Maris Otter barley, and 60
per cent malted wheat with 40 per cent Maris Otter barley. Wash
is supplied by the adjacent brewhouse, and Lone Wolf's distillers
plan to experiment with crystal, chocolate and roasted malts, as
well as lager yeast.
-
Also in Aberdeenshire, Twin River distillery an offshoot of
Deeside Brewery works with a mix of brewing yeast and distillers’
yeast, with wash from its 80 Shillings beer recipe, using principally
pale malt, with some chocolate malt. Like Lone Wolf, Twin River
has produced rye whisky, a move already made by Arbikie in
Angus. Larger-scale Scottish distillers such as Bruichladdich on
Islay and Inchdairnie in Fife have also produced ryes, with the
Inchdairnie distillers pointing out that historically, Scotch whisky
was often made using rye grain, and their ‘innovation’ is actually
the restoration of a practice widely employed a century ago.
Many start-up distillers opt to begin by making white spirits such
as gin and vodka, as these will provide a relatively quick source of
-
income, while — as already noted whisky must be matured for
three years to qualify as such.

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

The Cotswolds Distillery is located in the Warwickshire village of


Stourton, where New York-born former hedge fund manager Daniel
Szor purchased Phillip’s Field Estate, complete with two stone
buildings which were converted into a distillery and visitor centre.
“I lived in Paris for 11 years and first got into whisky there, around
2000, through the Scotch Malt Whisky Society and La Maison du
Whisky,” he explains.
“The inspiration for the distillery came when was looking out of
|

the window of our farmhouse in the Cotswolds one summer day,


watching growing spring barley, and thought ‘there’s all this barley
I

growing here, why is nobody making whisky with it?’


“The Cotswolds attracts around 25 million people per year, and |

figured they would provide a customer base for us, and also took
|

into consideration the burgeoning US craft distilling movement.


Before we set up the distillery, would go with friends to Scottish
|

distilleries each year, and one we visited was Bruichladdich. We


met the legendary distiller Jim McEwan there, and within 10
minutes he’d sold us a cask of whisky!”
Dan adds that, “Jim encouraged me to follow my dream and put
me in touch with Harry Cockburn, one-time manager of Bowmore,
who works with start-up distillers across the globe. He helped to
get the whole thing up and running, and the late Jim Swan was
also invaluable for his knowledge of distilling chemistry and for
creating a wood programme. Jim and Harry were both fantastic.”
The whisky stills and associated equipment were supplied by
Forsyth’s of Rothes on Speyside, and are supplemented by a
1,200-litre hybrid pot and column gin still from Holstein. The first
gin and single malt spirit flowed during 2014, with the latter being
made from 100 per cent Cotswolds-grown barley.
Dan notes that, “We use two main cask types of cask for
maturation, namely first-fill Bourbon and ‘STR.’ The latter is an
oak red wine cask, shaved, toasted and then charred. You get red
fruit and berry notes, plus a lovely caramelised sugar character.
The cask mix is 70 per cent STR and 30 per cent Bourbon, and
this is our signature ‘flagship’ bottling going forward.”
2016 saw the release of the distillery’s first whisky, namely

15
CASE STUDY | Cotswolds Distillery

Cotswolds Single Malt 2013 Harvest Organic Odyssey, followed in


October 2017 by Cotswolds Single Malt Whisky. It is released in
limited batches and bottled non-chill filtered. Each label lists the
barley variety, harvest year and local Cotswolds farm on which
it was grown. According to Dan, “The people at Bruichladdich
were very into terroir and the idea of using local barley, and that
influenced the direction took in terms of traceability.
|

“Warminster Maltings in Wiltshire floor malts batches of 10


tonnes of barley for us. It’s sourced from a farm just 10 minutes’
away from the distillery. We know the farmers and they’re great
guys, and I’m proud of this aspect of the business.”
In addition to their flagship Cotswolds Single Malt Whisky,
the Cotswolds Distillery also produces a Peated Cask Single
Malt Whisky, similarly made with locally grown barley which is
traditionally floor-malted at Warminster Maltings, but matured in
ex-peated quarter casks, which creates a balanced rich, and fruity
whisky with subtle notes of peat smoke.
Interms of funding for the Cotswolds Distillery project, Dan notes
that, “Il had enough money to purchase the property and the kit,
but for operating capital we raised money from family and friends
and two rounds of crowdfunding. We have 1,300 shareholders, and
they are great brand ambassadors for us. In total, there is nearly
10 million invested in the venture. We expanded our operation by
working two shifts per day, doubling production, and we can now
make up to 130,000 litres per annum.”
As well as Cotswolds Dry Gin and Single Malt Whisky, Cotswolds
distillery also produces 1616 Barrel Aged Gin, which is made by
redistilling malt whisky in a pot still and combining it with juniper,
coriander, nutmeg, orange peel and other botanicals. A third white
spirit is named Hedgerow Gin, made by macerating local fruit and
berries in Cotswolds Dry Gin for several months before it is slow-
pressed, blended and lightly sweetened.
More exotic still is an Absinthe, based on 19th century French
recipes, a Bitter Limoncello, and Espresso Martini. For the latter,
locally-roasted Monsoon Estates Coffee Company ground beans
are distilled in the Holstein still with fresh orange peel and a blend
of coriander seed, cassia bark, and cinnamon.
Some of these products are made in very limited quantities
and offered for sale only at the distillery visitor centre. “We have
a laboratory and two R&D distillers,” says Dan, “and the stuff they
create in small batches sells in the shop, which means it all pays

16
CASE STUDY | Cotswolds Distillery

for itself. love the joy of experimentation and discovery.”


|

Dan is keen to stress that most distillers need to increase


production at some point, so it is sensible to start out with a
relatively large capacity. “When we began distilling gin we expected
to be using the Holstein still to make it perhaps a couple of times
a month,” he recalls, “but such was the demand that we found
ourselves distilling 11 times a week and had to buy a bigger still
- increasing from 500 litres to 1,200 litres. You ought to embrace
scaling up, provided it doesn’t affect the quality of your product.
Volume is not a dirty word.”
In November 2018 a cask strength edition of Cotswolds single
malt whisky was released under the Founder’s Choice label, having
been matured entirely in red wine barriques. According to Dan, “In
terms of the ‘regular’ single malt, we will gradually increase the
age of the whisky to three to five years, and then five to seven, but
we won't be using age statements.”
Meanwhile, anyone wanting to discover what Cotswolds spirit
tastes like straight from the still, before it undergoes maturation,
can do so courtesy of Cotswolds White Pheasant New Make Spirit,
bottled at cask strength.
In April 2020, the distillery released the first bottling in a
series of single malts which have been inspired by the Arts and
Crafts movement: Cotswolds Hearts & Crafts Sauternes Cask
single malt whisky. This is the distillery’s first ever European Oak
Cask expression.
The same month saw the launch of No.1 Wildflower Gin, the initial
bottling in the Cotswolds Wildflower Gin Collection, created with the
gin spritz drinking occasion in mind. It is a blend of cornflowers,
lavender and orange, layered over the distillery’s classic London
Dry gin.

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The Microdistillers’ Handbook

notably fashionable, with Warner Edwards in Northamptonshire


producing 4,000 bottles ofVictoria's Rhubarb Gin during 2014, and
in excess of 350,000 bottles in 2014.

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.

Existing businesses — agriculture and brewing


While many microdistilling projects have been started from scratch,
some have been add-ons to existing businesses, most notably
agricultural and brewing enterprises. Ludlow Vineyard, located
on the lower slopes of Brown Clee Hill in Shropshire, boasts 10
acres of vineyards containing some 8,000 vines, along with apple
orchards. The installation of a still means that the Vineyard has
now diversified into the production of ‘Shropshire Applejack apple

18
What is distilling?

brandy, pear, apple, damson and greengage eau-de-vie, and a range


of fruit liqueurs.
Long before Ludlow Vineyard moved into distillation, Julian
Temperley of Pass Vale Farm, home to 180 acres of cider apple
orchards at Burrow Hill in Somerset, was distilling cider brandy.
Indeed, in 1989, Temperley was at the forefront of British
microdistilling, being granted the UK's first cider distilling licence,
and today half of the cider produced is distilled in a pair of copper
stills, named Josephine and Fifi, in recognition of their French
origins. Somerset cider brandy is now sold at 3, 5, 10, 15 and 20
-
years, while liqueurs and Somerset Pomona a blend of apples
and cider brandy - are also on offer.
Away from the world of apples and cider, other farming
enterprises have taken to distilling, utilising their own crops,
including potatoes. Arbikie Highland Estate is located near the
North Sea coast of Angus, between Dundee and Aberdeen, and
four generations of the Stirling family have farmed there. Potatoes
grown on the 2,000 acres have been distilled into vodka since 2014,
with gin and whisky following the year after, with the latter being
produced from home-grown barley.
Another farming venture with potatoes at its heart is Chase
Distillery, in Herefordshire. There William Chase and his family have
been distilling since 2008, having previously established the Tyrrells
crisps brand, which Chase sold for 300m. From an initial annual
turnover of 140,000, Chase was selling 10,000 bottles of spirits per
week, with export markets in 36 countries, during early 2016. As
Britain’s first ‘single estate’ distillery, Chase grows all potatoes used
in the production of its spirits on site, utilising specialist potato
varieties to make a premium vodka.

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

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The Microdistillers’ Handbook

in 1851 by Walter Hicks, has followed Adnams’ example, creating


wash from Cornish-grown Maris Otter barley, which is then double
distilled at Healey’s Cyder Farm in a tiny 1,200 litres traditional
copper pot still. The initial result was Hicks & Healey Cornish
Single Malt Seven Years Old Whiskey — the first whisk(e)y made in
Cornwall for around 300 years.
In East Yorkshire, the Mellor family of Wold Top Brewery near
Hunmanby, created a stand-alone distilling enterprise not far from
their farm during 2015/16, in partnership with long-standing friend
David Thompson. Using brewery wash, they now produce the first
ever Yorkshire single malt whisky.
In Scotland, BrewDog at Ellon in Aberdeenshire has established
Lone Wolf Spirits (see p.14), to produce gin, vodka and a wide range
of experimental whiskies, while in the same county, The Deeside
Brewery has set up Twin River Distillery, with the intention of being
equally experimental.
Born in the Borders brewery near Jedburgh is another beer-
making operation that has moved into microdistilling, starting
to produce Lilliard Gin in 2017 after a successful crowd-funding
venture. Based in a converted cowshed, this was the first distillery
to operate in the Scottish Borders since 1837, and the first ever
gin distillery. Born in the Borders started out in 2011 as a farming
diversification project, complete with ‘plough to pint’ ethos, using
home-grown barley.

Getting in on the act


Given the success of microbreweries, and the desire by a significant
section of the beer-drinking public to consume relatively local
brews with genuine provenance, it is hardly surprising that a
number of major brewers have bought up small-scale operations,
running them at arm’s length.
In 2015, Anheuser-Busch InBev purchased London’s Camden
Town Brewery, and in the same year the world’s second-largest
brewer SABMiller acquired Meantime Brewing Company, though
by then Meantime was hardly a microbrewer anymore, having
expanded to operate a 120,000-hectolitre modern brew plant.
SABMiller’s ownership of Meantime was short-lived in any case,
as a regulatory condition of Anheuser-Busch InBev’s takeover of
SABMiller in 2016 was the sale of the Greenwich operation, and
Meantime subsequently was bought by Asahi Breweries of Japan
in October 2016.

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:

The British Distillers Alliance


or BDA, www.britishdistillersalliance.com, a non-profit making
body that provides a professional service for independent and craft
businesses in the spirits production industry and supply chain.
The BDA represents distillers, rectifiers and compounders and
those in related sectors.
According to the organisation:
The BDA will principally deliver information at a detailed
operational level suitable for the day-to-day needs of small and
new businesses.

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The Microdistillers’ Handbook

We will respond to government consultations and seek to


influence government policy. We will also raise matters on our
own initiative.
We will initiate seminars for members with HMRC to discuss
policy and operational matters in our sector. We provide advice
on all relevant compliance matters and will advise on industry
best practice and training.
In 2014, The Scottish Craft Distillers Association
www-.scottishdistillers.online was formed, comprising new and
emerging Scottish distillers and Scottish academics. The SCDA was
created after members of Interface Food & Drink’s Craft Distillers
Common Interest Group (CIG) decided that an organisation was
required to represent their collective needs. The CIG then formed the
new association in partnership with Strathearn Distilleries and the
International Centre for Brewing & Distilling. In 2018 the association
was renamed The Scottish Distillers Association.
The objects of the Scottish Distillers Association are:
Promotion: Promoting collaboratively the products and services
of the members of the Scottish Distillers Association.
Representation: Providing unified trade representationfor
Scottish craft distillers at political, legislative and
environmental levels.
Innovation: Innovating technical solutions and supply chain
improvements to increase the production and supply of quality
spirits from Scottish craft distillers.
e Market
Development: Identifying new UK and export markets
for the products and services of the members of the Scottish
Craft Distillers Association.
Accreditation: Developing a trade marque or similar,
including all related intellectual property rights, to accredit
members’ products.
Common Interest Grouping: Engaging with research, academia,
skills development or knowledge transfer to enhance the value of
the Association's work or its members’ property or undertakings.

Craft Distilling Expo


www.distillingexpo.com staged in London each October, comprises
a series of events revolving around a distilling trade show. There are
whisky and gin distilling workshops and a toughly-contested Gin of
the Year competition, where craft gins are judged in seven categories.
In 2017, the main Expo featured over 30 vendors of distiller supplies

22
What is distilling?

- including still manufacturers and bottle and closure suppliers, all


staged within the premises of what was once one of London's greatest
breweries, namely the Old Truman Brewery in Brick Lane.
The Craft Distilling Expo also marks the launch of the annual
Crafdi Directory of European Distilleries, which now boasts over
360 entries from across Europe. In addition to location and website
information, each entry now includes details of what spirits are made
at the distilleries in question making it a notably valuable resource
for distillers and aficionados alike.

The Gin Guild


www.theginguild.com
The Gin Guild was incorporated by the Worshipful Company
of Distillers, one of London's traditional Livery Companies,
incorporated by Royal Charter in 1638. The historical role of the
Worshipful Company of Distillers was to hold key responsibilities
for the control and regulation of early gin distillers.
According to the Guild, “The Worshipful Company of Distillers
aims, via the work of the Gin Guild, to be at the heart of the distilling
industry to provide and facilitate a wider opportunity for those
involved in the gin industry, allowing them to participate in a
modern convivial industry forum, whilst reflecting and including
many of the traditions of the City of London.”
There are various classes of membership:
e Founder Wardens, appointed by each of the four
founding companies.
e Wardens, including distillers and brand owners.
e Rectifiers, made up of others involved in the wider gin
industry including leading bartenders, spirits journalists
and educators as well as those working in production
and distribution.
The Gin Guild hosts an annual ‘Ginposium — the industry’s annual
seminar, when some of the world’s most respected personalities
and experts from the drinks and gin trade gather to discuss the
state of the gin industry and share their knowledge and expertise
on all things gin.

The Institute of Brewing and Distilling


www.ibd.org.uk
The Institute of Brewing & Distilling (IBD) is the world’s leading
professional body for people working in brewing and distilling.

23
The Microdistillers’ Handbook

As an international professional and educational body, the IBD


promotes “The advancement of the education and professional
development in the science and technology of brewing, distilling
and related industries.”
Dating back to 1886, the IBD now boasts over 5,000 members
and is the largest global professional body for brewers and distillers,
and the only one with a worldwide footprint. Global membership is
administered on a geographic basis with sections around the world.
The IBD offers a range of examinations and qualifications in
brewing, distilling, malting and packaging, ranging from the
Fundamentals of Brewing and Packaging and of Distilling for
nontechnical personnel, through General Certificates in Brewing,
Distilling, Malting or Packaging, to Diplomas in Brewing, Distilling
or Packaging. The ultimate accolade is the Master Brewer or Distiller
qualification, which assesses levels of both competence and
knowledge in the technical management of the production process.
Supporting its members through lectures, technical visits,
seminars and conferences worldwide, the IBD also publishes the
monthly Brewer and Distiller International magazine and quarterly
Journal of the Institute of Brewing.

The Scotch Whisky Association


www.scotch-whisky.org.uk
The Scotch Whisky Association’s (SWA) role is to advance the
global interests and profile of Scotch whisky, its members and of
the industry as a whole. The SWA states that “By building strong
relationships with all levels of government and opinion-formers
and by making a visible impact on public debate we will:
Bea trusted voice in the debate on alcohol and society.
e
Support a competitive, sustainable and fairly
taxed industry.
Safeguard the Scotch whisky category.
e Ensure fair access to all markets worldwide.
“We see the Scotch whisky industry as a significant Scottish and
British economic and cultural asset that boosts growth and jobs,
that strongly supports the communities with which we work and
that combines the very best of the traditional and the modern.”
The SWA can trace its origins back to October 1912. The original
organisation, the Wine & Spirit Brand Association changed its name
to the Whisky Association in 1917, and this in turn became the SWA
in 1940.

24
What is distilling?

The Wine and Spirit Trade Association


www.wsta.co.uk
The Wine and Spirit Trade Association (WSTA) represents over 300
companies producing, importing, exporting, transporting and
selling wines and spirits in the United Kingdom. Members range
from major retailers, brand owners and wholesalers to fine wine
and spirit specialists, logistics and bottling companies.
According to the WSTA, “We campaign for a vibrant and
sustainable wine and spirit industry, helping to build a future in
which alcohol is produced, sold and enjoyed responsibly. Our policy
work is extensive, on a wide range of social, regulatory and technical
issues. The wine and spirit industry is eager to play its part in the
UK’s economic growth and we aim to shape an environment in
which our sector can increase investment and remain competitive.
“Regulation is one of the biggest barriers to growth any business
can face. We strive to ensure that regulation - whether at an
international, national or local level - does not threaten the sector's
viability. Another key part of building a sustainable future for the
industry is fostering a culture in which our products are enjoyed
responsibly. We are committed to working in partnership with the
UK Government and other stakeholders to deliver this.”
Key Issues addressed by the WSTA include alcohol taxation
policy, alcohol pricing, public health and social responsibility,
regulation of wine and spirit products, licencing laws, environment
and sustainability, facilitating market access and distance selling,
tackling fraud, logistics and customs and excise policy.

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

n this chapter we focus on definitions of spirits, ingredients,


the role of consultants, the equipment required to set up your
distillery, environmental responsibilities and opportunities
for training.

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.

27
The Microdistillers’ Handbook

2.7 Blended Grain Scotch Whisky means a blend of two or more


single grain Scotch whiskies from different distilleries.
In addition to the above basic definitions, there are many
other criteria to bear in mind, relating to maturation, labelling,
use of distillery names and geographical indicators — see
www.scotch-whisky.org for full details.
Spirits are defined by Regulation (EC) No 110/2008 of the
European Parliament and of the Council of 15 January 2008 on the
definition, description, presentation, labelling and the protection
of geographical indications of spirit drinks.
Definitions for categories of spirit drinks include the following:

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

without whole grains of other cereals, which has been:


— saccharified
by the diastase of the malt contained
therein,
— fermented
by the action of yeast;
(ii) one or more distillations at less than 94.8 % vol., so that
the distillate has an aroma and taste derived from the raw
materials used,
(iii) maturation of the final distillate for at least three years
in wooden casks not exceeding 700 litres capacity.
The final distillate, to which only water and plain caramel
(for colouring) may be added, retains its colour, aroma
and taste derived from the production process referred
to in points (i), (ii) and (iii).
(b) The minimum alcoholic strength by volume of whisky or
whiskey shall be 40%.
(c) No addition of alcohol, diluted or not, shall take place.
(d) Whisky or whiskey shall not be sweetened or flavoured,
nor contain any additives other than plain caramel used
for colouring.

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

by volume of grain spirit shall be 35%.


(c) No addition of alcohol, diluted or not, shall take place.
(d) Grain spirit shall not be flavoured.
(e) Grain spirit may only contain added caramel as a means to
adapt colour.
(f) Fora grain spirit to bear the sales denomination ‘grain brandy’,
it must have been obtained by distillation at less than 95%
vol. from a fermented mash of whole grain cereals, presenting
organoleptic features deriving from the raw materials used.

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.

Cider spirit and perry spirit


(a) Cider spirit and perry spirit are spirit drinks:
(i) produced exclusively by the distillation at less than 86%
vol. of cider or perry so that the distillate has an aroma
and taste derived from the fruits,
(ii) having a quantity of volatile substances equal to or
exceeding 200 grams per hectolitre of 100% vol. alcohol,
(iii) having a maximum methanol content of 1,000 grams

29
The Microdistillers’ Handbook

per hectolitre of 100% vol. alcohol.


(b) The minimum alcoholic strength by volume of cider spirit
and of perry spirit shall be 37.5 %.
(c) No addition of alcohol, diluted or not, shall take place.
(d) Neither cider spirit nor perry spirit shall be flavoured.
(e) Cider spirit and perry spirit may only contain added caramel
as a means to adapt colour.

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

(c) Flavoured vodka may be sweetened, blended, flavoured,


matured or coloured.
(d) Flavoured vodka may also be sold under the name of any
predominant flavour with the word ‘vodka’.

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

31
The Microdistillers’ Handbook

per hectolitre of 100% vol. alcohol, whose flavour is


introduced exclusively through the re-distillation in
traditional stills of ethyl alcohol in the presence of all the
natural plant materials used,
(ii) the resultant distillate of which contains at least 70%
alcohol by vol.,
(iii) where any further ethyl alcohol of agricultural
origin is added it must be consistent with the
characteristics listed in Annex I(1), but with maximum
a

methanol content of 5 grams per hectolitre of 100%


vol. alcohol,
(iv) which does not contain added sweetening exceeding
0.1 gram of sugars per litre of the final product
nor colorants,
(v) which does not contain any other added ingredients other
than water.
(b) The minimum alcoholic strength by volume of London gin
shall be 37.5 %.
(c) The term London gin may be supplemented by the term ‘dry’.

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

— 80 grams per litre for gentian or similar liqueurs


prepared with gentian or similar plants as the sole
aromatic substance,
— 100
grams per litre in all other cases;
(ii) produced by flavouring ethyl alcohol of agricultural
origin or a distillate of agricultural origin or one or more
spirit drinks or a mixture thereof, sweetened and with the
addition of products of agricultural origin or foodstuffs
such as cream, milk or other milk products, fruit, wine
or aromatised wine as defined in Council Regulation
(EEC) No 1601/91 of 10 June 1991 laying down general
rules on the definition, description and presentation of
aromatized wines, aromatized wine-based drinks and
aromatized wine-product cocktails.
(b) The minimum alcoholic strength by volume of liqueur shall
be 15%.

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’.

Honey or mead nectar


(a) Honey or mead nectar is a spirit drink produced by flavouring
the mixture of fermented honey mash and honey distillate
and/or ethyl alcohol of agricultural origin, which contains
at least 3% vol. of fermented honey mash.
(b) The minimum alcoholic strength by volume of honey or
mead nectar shall be 22%.
(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 honey or mead nectar provided that the honey taste
is predominant.
(d) Honey or mead nectar may be sweetened only with honey.

33
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

to Sri Lanka, cinnamon tends to be less common than cassia as


agin botanical, principally because cassia is more easily sourced.

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

rent of 1, and building work commenced in January 2017. All


plant was supplied by Forsyths of Rothes - including the smallest
mash tun they had ever made - and the Forsyth family were also
investors in the project. The distillery was completed by November,
and the first spirit flowed in late January 2018.
Mike says that, “We got permission for a second round of crowd-
funding, aiming to raise 750,000, but were granted a target of up
to 1m with no limit. The whole venture is entirely crowd-funded,
and it’s the first distillery in the world to be 100 per cent community-
owned. Each share costs 50 per share, with the minimum option
of buying five shares.”
Investors will receive 200ml bottle of GlenWyvis whisky during
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

explains that, “I was an investor in GlenWyvis before was appointed


|

manager. liked the community aspect and the renewable energy


|

angle. It takes me back to distilling on a farm 200 years ago,


when there would be community involvement in malting and other
processes of distilling.”
“We're looking for long fermentations of 90-105 hours
at GlenWyvis, giving something malty and fruity. We run the
stills slowly but quite hot. There’s lots of copper contact to give a
grassy note.
“Maturation is American oak-led, though we have some European
oak in the warehouse - mainly investor casks - including first-fill
oloroso sherry hogsheads. For ourselves we tend to use first-fill
Jack Daniels casks and refill hogsheads. We will be filling some
sherry casks, and probably vatting five to ten per cent of that whisky
into our eventual bottlings.”
In terms of when GlenWyvis single malt might be first bottled for
general consumption the prevailing theory is that ‘it’s ready when
it’s ready,’ but Duncan Tait notes that, “If find a few great casks
|

that are ready then will probably release them quite young as
|

single cask bottlings.”


Meanwhile, to help generate income, 20cl bottles of new-make
spirit are on sale, and GoodWill Gin is also being produced in the
bespoke gin still that was installed as a result of the second round
of crowd-funding.

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.

The Craft Distilling Business


www.thecraftdistillingbusiness.com
The Craft Distilling Business has been established by Matt Servini
and Vanesa Rapier to offer a comprehensive service to start-up
distillers. Its modus operandi features the use of duty-paid neutral
grain spirit, and the company provides site surveys, design and
commission of stills, recipe creation, health & safety and HMRC
licencing advice, maintenance, staff training, marketing and
packaging support. Additionally, the firm sources botanicals and
neutral spirit for its customers.
A portable still - named Gertie — is also available to hire for pop-
ups and other events. Gertie can produce any unaged spirits to
existing or bespoke recipes.

Craft Distillery Design


www.craftdistillerydesign.com
Based at Ballindalloch in the heart of Speyside, Craft Distillery
Design offers “A bespoke service in craft distillery design and
development for prospective artisan and craft distillers from initial
concept through to first production.”
The company specialises in small-scale distilling ventures, and
works with clients through the formation of business strategies, site
appraisal and procurement, architecture and planning, distilling
equipment selection and project management, even working
where necessary to help create brand identities.
Craft Distillery Design’s best-known clients have included
Ballindalloch and the Cotswolds distilleries.

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.

The Institute of Brewing & Distilling


www.ibd.org.uk
The Institute of Brewing & Distilling (IBD) is the world’s leading
professional body for people working in brewing and distilling.
As an international professional and educational body, the
IBD promotes “The advancement of the education and professional
development in the science and technology of brewing, distilling,
and related industries.” Dating back to 1886, the IBD now boasts
over 5,000 members and is the largest global professional body for
brewers and distillers, and the only one with a worldwide footprint.
The IBD offers the following qualifications:

39
CASE STUDY | DYFI Distillery

Case study
DYFI Distillery
www.dyfidistillery.com

Dyfi distillery is located in the former slate mining village of Corris


in Mid-Wales, and the area has the distinction of being aUNESCO
Biosphere - the only one in the country. It is home to some of
the most diverse flora, cleanest water, darkest skies and lowest
population in Europe.
Here brothers Pete and Danny Cameron and their families produce
gin, with Danny explaining that, “Our primary interest is making gin
with a sense of place, and to achieve that around 70 per cent of the
botanicals we use are foraged within the UNESCO World Biosphere
Reserve where we are located.”
Using foraged botanicals means that not every batch of Dyfi gin
is absolutely identical, but as Danny says, “If we need to sacrifice a
small degree of consistency in exchange for absolute quality, think
|

our customers understand that. But equally, we use preservation of


foraged botanicals to allow us to repeat botanical quantities between
batches of each gin, and our foraging is mostly site specific.
“So, we have processes to help mitigate variation, but we are
dealing with natural ingredients. Even for non-foraged ingredients,
we only use fresh lemon peel for example, so there is some variation
in sourcing organic unwaxed lemons in a location as remote as ours,
but we prefer the brightness this delivers, and value that above the
greater consistency that dried peel might provide.”
Explaining how he and Pete came to be running a distillery in
Mid-Wales, Danny says that, “I started in the restaurant trade and
found myself writing my first wine list while still doing a hotel school
internship. was Subsequently a head sommelier, restaurateur, and
|

hotel manager, before becoming a wine merchant, and then involved


in importing, consultancy, and generic promotion in the wine trade. |

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

When it came to equipping the distillery, two 100-litre stills were


acquired from the Colorado company Mile Hi Stills, with Danny noting
that, “We were setting up on a fairly tight budget but wanted to use
equipment which was highly adaptable. We also further modified
the stills on arrival here.
“We had a new still from Muller in Germany installed in February
2019. It’s a 320-litre custom-built hybrid, with three plates, a
dephlegmator and offset gin basket. It is a consolidation of all we
have learned in the last few years, which is why we didn’t do this
when we started.”
As well as distillation equipment, Danny Cameron is keen to
emphasise the importance of packaging, saying that, “The packaging
should be a direct reflection of the amount of effort put into the
product, and the values of the producer.
“We worked with a brilliant small design team called Dare! who
| knew from their work in the wine trade. think it’s important that
|

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

Fundamentals of Distilling (Novice): the purpose of this


qualification is to provide a basic grounding in the technical
features of brewing and packaging of beers and distilling of
spirits for both production personnel and for people employed
in brewery or distillery companies (and related industries), but in
non-technical roles,
This course is suitable for all non-technical personnel
employed within the distilling industry who would benefit from
background knowledge in distilling production, (sales, marketing,
HR, finance) or anyone who has just started a technical career
within the distilling industry.

General Certificate in Distilling (Intermediate): This qualification


is suitable for all non-technical personnel employed in the
distilling industry who would benefit from background knowledge
in spirit production and for those who have just commenced their
technical or production careers.
General Certification in Distilling (GCD) requires a basic
knowledge of the processes used to produce the main types of
potable spirit consumed worldwide. The scope of the present
GCD syllabus is therefore confined to spirits derived either from
cereals, cane sugar and cane sugar molasses, and grapes.

Diploma in Distilling: these learning courses are designed


to guide candidates through the examination syllabus.
Typical Diploma in Distilling candidates are team leaders and
operational managers.
There are three Modules to the Diploma in Distilling Examination.
Module 1: Preparation of Fermentable Extract 1A: Cereal wort
1B: Molasses wort 1C: Grapes must
Module 2: Fermentation, Distillation & Maturation
Module 3: Process Technology

Heriot Watt University, Edinburgh


www.hw.ac.uk
For the truly serious distiller with time to commit, Edinburgh’s
Heriot Watt University Brewing & Distilling qualifications are
highly regarded the world over. BSc Hons (Undergraduate level)
and MSc/ Diploma (Postgraduate level) programmes are available,
and the Postgraduate Diploma/MSc programme is accredited by
the Institute of Brewing & Distilling.

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.

Equipping your distillery


Whether you decide to go it alone and source your own distilling
equipment, with or without input from specialist consultants, or
contract a company to create a complete distillery for you, there
are a number of essential pieces of kit required to make spirits.
The following list applies to those intending to undertake the full
spirit-making process themselves.
Many gin distillers buy in grain neutral spirit (GNS) from other
distilleries and create their own distinctive brand by the selection
of botanicals used. Some even have the entire product made for
them bya third party, and simply ‘badge’ it with their name. Given
that provenance is at the heart of what most microdistillers are all
about, this latter practice tends to be frowned upon by many in the
business. Gin may also be produced by adding flavourings to GNS,
with the intention of creating a predominant taste of juniper. This
method of production is known as ‘compounding.’
Ifyou plan to buy in base spirit to create gin, rather than distil your
own from scratch, then only the section relating to stills will apply.

43
CASE STUDY | Winchester Distillery

Case study
Winchester Distillery
www.winchesterdistillery.co.uk

Winchester Distillery was established in 2014 by Paul Bowler, who


admits that prior to starting out making gin in his home kitchen
in the Hampshire city he had little really relevant experience. “I'd
spent most of my career working in software development with large
corporate clients,” he explains, “but spent the first two years after
|

graduating in the early 1990s working for Merrydown Cider in East


Sussex. This gave me an introduction into the dynamics of the drinks
industry, which never really left me.”
“The last 10 years of my career was spent helping large
organisations become more innovative using novel management
techniques that allowed them to launch software products quickly
and successfully. built the distillery using the same ‘lean’ principles,
|

so didn’t leave all my experience behind.”


|

When the fledgling business outgrew Bowler’s house, he looked


around for suitable commercial premises, but, as he explains, “When
| needed to expand found there was very little available locally of
|

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
|

to use watercress as a botanical. The Romans knew watercress


as Nasturtium, meaning ‘twisted nose,’ from which our gin takes
its name.”
When it comes to creating gin recipes, Paul takes what might
be termed a ‘scientific approach.’ “Initially distil each botanical
|

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

further distillation, we use in most of our gins but also increasingly


make neutral spirit ourselves for various products.”
When it comes to the treatment of botanicals, Winchester uses
both steeping and vapour infusion, with Paul explaining that, “We
use the most appropriate method to suit each botanical and the
expression of spirit we are making. The use of vapour infusion is
suitable for delicate botanicals such as fresh flowers, or for fresh
citrus peels where the oils can become stewed if distilled in the pot.”
The stills used by Winchester range from small Hoga copper
alembics (5 - 30 litres) from Portugal and stainless-steel stills from
Germany (30 - 150 litres), the largest of which includes a six-section
column and vapour infusion chambers.
Winchester benefited by being the first craft distillery to open in
Hampshire, and Paul reveals that, “From a starting point of zero we
were profitable in the first six months and have doubled turnover in
all of the four years we’ve been trading.”
“Our goal for this year is to increase distribution further across the
UK and find international agents and distributors to increase our
export sales. We must never forget our roots though, and any growth
must not damage our core values and Hampshire focus.”
“We’re taking on more of the building in order to increase the
capacity of our fermentation and distilling operations and produce
new Spirits - brandy, rum and whisky- in commercial batches. We’re
moving our desks into new offices within the building, refurbishing
one unit into a cask ageing room, and transforming a larger unit into
the new distillery with a bottling room and storage area.”
“This will free up the current distillery area to become our full-time
research and development laboratory, and a place where we can run
consumer distilling sessions for our Gin School.
“These distillery experiences are always popular and create instant
cash-flow, vital for a growing business. Once people see what we're
doing, experience the care and attention to detail in our spirit
production and have tasted the end result, they become unofficial
ambassadors and help spread the word.”
“You then have to get to learn the workings of the spirits industry,
start growing sales accounts, work with wholesalers and distributors,
understand employment law, manage cash-flow, register trademarks
(and fight infringements), attend exhibitions and trade shows, create
marketing and PR, deal with new competitors popping up, and a
whole host of other problems. You don’t start a distillery if you want
an easy life, no matter how romantic the idea sounds!”

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.

Hot liquor tank


The word ‘liquor’ is rather misleading here, as this tank never
contains any alcohol. It is the vessel in which water is heated prior
to the mashing process. In brewing parlance, ‘liquor’ is water. The
Hot Liquor Tank- or HLT —is essentially, an insulated stainless steel
tank fitted with a heating element, usually powered by electricity.

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

a single pot still and use it for two consecutive distillations.


The size and design of a pot still can impact significantly on
the type of spirit it produces, with greater copper content serving
to produce a lighter style, though the permutations of pot still
distillation mean that still size and design are just two variables
to take into account. The amount of wash contained in a still, the
speed at which it is distilled and variable operating temperatures
all affect the ‘new-make’ that ultimately flows from the spirit still,
as do the ‘cut points’ at which the ‘heart of the run’ are separated
from the less pure foreshots and feints.
Traditionally, copper pot stills were heated by direct firing, using
coal, coke or even peat, but since the late 19th century, the use of
steam to heat stills has been practiced, and direct firing is now
rare. Where it is employed, such as Glenfarclas whisky distillery
on Speyside, the source of heat is usually gas. Steam is introduced
to the stills through coils or ‘pans’ fitted in the base, and the major
advantage of this method of heating wash is that it is much more
controllable than direct firing, leading to greater consistency in
the final spirit.

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

design of most column stills remains relatively unchanged to this


day, and steam is the usual source of heat.

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

of smaller gin producers — such as Cambridge, Sacred Spirits and


Victory Gin Distillery — have also adopted this method, believing
it leads to fresher flavours in the ultimate product.
From a technical standpoint, producing spirit under vacuum
reduces the atmospheric pressure, allowing distillation to take place
at significantly lower temperatures than in a potstill and by doing so,
also saves energy costs. This ensures that more delicate botanicals
are not ‘cooked,’ leading to a marked reduction in their influence on
flavour. When distilling under vacuum, the botanicals are initially
macerated in neutral alcohol to maximise extraction of flavours.

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.

John Dore & Co Ltd


www.johndore.co.uk
The oldest distillery engineering business in the world, John Dore is
the successor company to Aeneas Coffey & Sons, founded in Dublin
in 1830, with a London operation being established five years later.
In 1872, John Dore, the works foreman, took over the business from
the son of Aeneas Coffey, himself famous as the man behind the
patent, column or Coffey still. Dore ran the business from Bromley-
by-Bow in London, but in the late 1960 a local authority housing
development forced the firm to move to Essex, and today it is based

49
The Microdistillers’ Handbook

at Guildford in Surrey. Since 1992 the company has been owned


by David Pym, who acquired it from the last member of the Dore
family to have an involvement.
John Dore & Co Ltd offers design and consultancy services, and
manufactures pot stills for gin and rum (from 500 litres capacity
upwards), and whisky (1,000 litres upwards) and also column stills
of varying sizes, not to mention a wide variety of tanks and heat
exchangers. The firm also specifies and sources all other equipment
necessary to create a working distillery.

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

heart is McMillan Ltd, based at Prestonpans near Edinburgh. The


firm was founded in 1867 and originally operated as Archibald
McMillan Ltd. The company boasts that “There can scarcely be a
whisky distillery in Scotland, a gin distillery in England or a rum
distillery in the Caribbean that has not employed distillation plant
manufactured by ourselves.” McMillan designs and fabricates
everything from botanical chambers for gin distillation, fermenting
vessels, pot and column stills, spirit safes, and all the pipework
necessary to create an integrated distilling venture.

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

Organic Distilleries Ltd is a sister company to Organic Architects,


which was established by architect Gareth Roberts in 2005. The
company is based in Helensburgh, Argyll and Bute, Scotland, and
operates as a Specialist architecture and consultancy group for
the worldwide design and delivery of distilleries.
Gareth worked in the field of urban design and spent time in the
United States and in Russia, before striking out on his own. “Initially
we were building houses, but very alternative eco-developments that
encouraged a sense of community,” he explains. “We first got involved
with distilleries three years later.
““Organic’ means we’re into the ‘eco’ side of things, including energy
efficiency, but there’s also the ‘evolution’ aspect to the name. We also
develop properties, so we do a lot more than the average architect:
People come to us with the idea of a building, and we can deliver the
building to them and give them the keys. We head a team of industry
experts who can supply HMRC advice, specialist insurance advice -
everything a distiller needs from saying ‘I might want a distillery’ right
through to the stage when spirit is flowing.”
The company’s first distillery project was the design of Ardnamurchan,
remotely situated at Glenbeg on the Ardnamurchan peninsula, just
north of the Isle of Mull, on the west coast of Scotland. The distillery
was built for independent whisky bottlers Adelphi Distillery Ltd and is
powered bya biomass plant which makes it one of the most low-carbon
distilleries in the world.
Gareth says that, “Getting kerosene to such a remote location to fire
the boiler was always going to be expensive, and the owners wanted to
use local fuel sources. They chop local timber and use it for bio-mass.
If you can cut production costs per litre then that’s obviously good for
business, and local bio-mass has the minimum possible environmental
cost.” A biomass boiler takes careful commissioning though, in the past
they have been installed in distilleries and never used because they
haven’t been properly adjusted.
He adds that, “We put the stills in the windows at Ardnamurchan. Still
necks need replacing quite often, and if you putthe stills by windows you
can vent beneath them, and take still parts out through the floor. There’s
a great aesthetic element to having the stills by windows, too, especially

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
|

with, should be making more of this aspect. We've created traditional


‘dunnage’ warehouses at Ardnamurchan and Drimnin, and a cattle byre
conversion at Lindores is a dunnage warehouse. You need thick, heavy
walls to help make for only small temperature changes. like the idea
|

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
|

small-scale gin distilleries. We have to bear in mind that we can advise


on all of the rules and regulations.
“Whisky has a mystique that can add value, but it is complex - there’s
no guarantee that after spending time maturing in a cask the end
product will be good. It costs minimum of 2 million to get a basic
a

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

construction and project management. The company also offers


technical supervision and staff training. Originally specialising in
grappa distillation equipment, Frilli now supplies stills for a wide
variety of purposes, and in Scotland equipped recent start-ups such
as Inchdairnie distillery in Fife, Raasay in the Inner Hebrides and
Harris in the Outer Hebrides with whisky and gin making plant.

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

any product. One machine does it all, minimising pumping and


cleaning and production bottle-neck issues. You can now make
whisky, brandy, rum, gin, and vodka on one and the same machine.
“The 21st century technology, together with the compact design
and insulation, cut running costs - when compared to traditional
plated copper stills - by around 90 per cent, gaining you an amazing
competitive advantage over those that wish to continue to use
antiquated 19th century technology.”
In the UK, iStills are used by Twin River, Blackford, Loch Ness,
Verdant Spirits and Dornoch in Scotland, along with the Wrecking
Coast distillery at Tintagel in Cornwall.

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.

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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

57
The Microdistillers’ Handbook

distilling enterprise, as the production of spirit requires significant


quantities of H,0. The water source chosen should be consistent in
its supply and pure in character. ‘Process water’ is used for mashing
and cooling purposes and must be free of contaminants, but the
water used to reduce the strength of spirit once distilled must
meet international standards of potability. Water may be sourced
from rivers, lakes/lochs, wells, boreholes or the pubic supply. In
England, the Environment Agency allows the free abstraction of
20,000 litres of water per day from wells and boreholes, though
a Water Abstraction Licence will be required. If using the public
supply, the industrial tariff of water companies will be imposed.

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

protein-rich spent grains or draff that remains after mashing has


traditionally been sold to local farmers as cattle feed, or processed
into cattle feed pellets, though it is increasingly being used to power
anaerobic digester plants where bio-gas is created, which in turn
can be converted into steam energy.
The pot ale and spent lees that remain after distillation are treated
to remove unacceptably high levels of copper ifnecessary, and most
of this goes for cattle feed with the remainder being discharged into
bodies of water sufficiently large and fast-flowing to accept them
without issues of pollution.

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

aving explored the heritage of spirits, product definitions


and distilling equipment, it’s now time to get down to the
business of actually making alcohol!

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

61
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

whiskies, so bottling at a higher ABV or even at cask strength is an


attractive option. Once again, however, it will make your product
more expensive to create, though hopefully the achievable price
points should make it worthwhile.
It may seem that with some trial and error anyone should be able
to assemble a decent blended whisky, but the art of whisky blending
is highly skilled, requiring the ability to assemble component spirits
that will harmonise and create something greater than the sum ofits
parts. The art has been likened to a conductor leading an orchestra.

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,

63
The Microdistillers’ Handbook

barley and oats (Adnam’s Longshore Triple Malt Vodka) or potatoes


(Arbikie Potato Vodka).

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

flavours they evoke when interaction with wood becomes part of


the equation.
Broadly speaking, maturation takes place due to a three way
‘conversation’ between the spirit, the cask and the external
atmosphere. In a small cask the content has much greater contact
with the wood than in a large one, and the smaller the cask the
faster maturation is likely to occur. Many microdistillers choose to
fill casks that are significantly smaller than the traditional whisky
industry minimum of a 200 litre barrel, opting for 50 litre octaves.
The two principal types of oak used for spirits maturation are
American White Oak (Quercus alba) and European or ‘Spanish’
oak (Quercus petraea). Of these, American White Oak grows faster,
is tighter grained and has fewer knots than its European relative.
Use of a cask that has previously held Bourbon or sherry and is
being used for whisky maturation for the first time — known as a
first-fill cask - will have a greater influence than a cask being used
for the second, third or even fourth time.
Microdistillers tend not to content themselves with ex-
Bourbon and ex-sherry casks, however, and more wine casks are
being pressed into service, while some are even thinking the
unthinkable and working with non-oak woods such as chestnut,
though in order to qualify as ‘Scotch whisky,’ the spirit must be
aged in oak casks.
When it comes to white spirits, Adnams is one distiller that
-
has chosen to age vodka taking its Longshore Vodka and
committing it to European oak casks for an unspecified period
of time to create a product marketed as North Cove Vodka.
Meanwhile, the East London Liquor Company has embarked on
an innovative programme of cask finishing for its London Dry
Gin, with the first batch spending 14 weeks in new French
oak barrels. North of the border, the Glasgow Distillery
www.glasgowdistillery.com is going down a similar route,
ageing some ofits Makar Gin for ten weeks in new European oak.
Edinburgh's Pickering’s Gin has opted to fill quantities of its gin
into whisky casks — one representing each of the five single malt
producing regions of Scotland, so the consumer can experience
gin with a hint of Islay, for instance.
With any cask-ageing programme, it is important to closely
monitor the progress of the product. Particularly with white spirits,
the balance can tip from the wood imparting positive additional
characteristics to overwhelming and dominating very quickly.

65
CASE STUDY | Pickering’s Gin Distillery

Case Study
Pickering’s Gin Distillery
www. pickeringsgin.com

We are all familiar with micro-distilleries being set up in weird and


wonderful premises, but to the best of our knowledge, Pickering’s
Gin Distillery in Edinburgh is the only one to be established in a
former dog kennel.
To be fair, we are not talking about one of those mono-dog wooden
affairs used to house German Shepherds in scrap yards, but rather
the building that was formerly occupied by the kennels of the Royal
Dick Veterinary School, now removed to a new out-of-town location.
As well as its location, Pickering’s is unusual for a recently-
established micro-distillery in that the gin recipe at the heart of the
business has not been formulated during the last two or three years,
but dates back to 1947.
As co-founder Marcus Pickering explains, “A few years ago, was
|

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

66
CASE STUDY [| Pickering’s Gin Distillery

hobby, remember. These stills were what we could afford.


“There are several ways of heating a pot still - using steam through
an internal coil, direct flame or an electric plate under the base.
However, some botanicals float and some sink, so with a conventional
internal coil some get overheated and some don’t get enough heat.
So, we fitted our stills into bain marie ‘tanks,’ They are 500-litre stills,
charged with 300 litres of spirit, so the water in the bain marie comes
up to the level of the charge, and we can control the temperature to
within one degree. All the botanicals go straight into the still - we
steep them.”
Pickering’s buy in wheat-based GNS, distilled in France, and used
by Hendrick’s among other producers. “It is totally flavourless, as
it should be,” declares Marcus. “You can taste the grain in poorer
quality GNS. It makes sense for us to buy this in rather than distil it
ourselves, because we just want it to be pure.”
The distillery was most recently awarded Best Scottish Navy Gin
and Best Scottish Contemporary Gin at the World Gin Awards 2020.
This came shortly after the highly successful festive period of 2019
when Pickering’s Gin made six festively flavoured gins including the
worlds’ first, Brussels Sprout Gin. It is currently selling in excess of
300,000 bottles per year and exports to 17 countries worldwide.
The distillery itself attracts between 300 and 400 people each
week, who are able to watch the distillation process, bottling and
packaging taking place on site. Marcus says that, “We aim to convert
people from customers to fans, because then they will travel to find
your gin. We have a reach of 200,000 by social media and 50,000
on our direct mailing list. Changes to Facebook a few months ago
have made it very expensive to advertise there so we’re focussing
less on adverts and more on individuals. Social media is important
to us and allows us to connect almost instantaneously.”
And what of the opinion that the current ‘gin craze’ will soon
be eclipsed by another drink, perhaps rum or tequila, leaving gin
distillers exposed in a shrinking market? “Gin is back to stay, think,” |

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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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

A number of overseas microdistilling operations have chosen


to make a virtue of malting their own barley to create the ultimate
‘grain to glass’ product, and it may be that as ever more UK distillers
opt to distil whisky, some will follow that lead and develop maltings
as a USP for their whisky.

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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through the vessel’s perforated floor and cooled to between 16° C


and 20° C prior to the fermentation stage of whisky production.
In smaller mash tuns, as described above, heating of the water
takes place within the vessel, rather than being introduced from
an external source.
Traditionally, the ‘draff’ or spent grain remaining in the mash
tun after the wort has been drawn offhas been in great demand as
cattle food due to the high level of protein that it contains. This is
obviously a very desirable state of affairs for the environmentally
conscious microdistiller.

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

secondary bacterial - fermentation leads to sweeter, fruitier notes


in the spirit finally distilled. Short fermentations tend to produce


spirit with a nutty, spicy character.

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 microdistiller will, of course, be hands on when it comes to


cutting spirit, and the points at which cuts are made varies in part
on the style of spirit required. A broader cut is likely to be taken
if a full-bodied, oily, even phenolic spirit is considered desirable.
As noted in Chapter Two, the shape and size of still are also
important factors in the character of spirit produced. The key here
is the amount of copper contact that the spirit experiences. As a
rule of thumb, the more copper contact the lighter and ‘cleaner’ the
spirit. A small, squat still does not allow for much copper contact,
but a tall still allows for a significant degree of reflux-— when vapour
high in alcohol falls back down into the pot of the still for further
distillation, exposing it to even more copper contact. The angle
of the lyne arm or lye pipe which connects the still head to the
condenser is also a factor in reflux, as an upwards sloping arm will
encourage more of the vapour to fall back for further distillation,
while a downwards sloping arm will have the opposite effect. Once
collected, the spirit destined for maturation is reduced with water
to an average filling strength of 63.5 per cent.
Not every whisky distiller uses a consecutive pot still distillation
process, however, with some using the same still for both
distillations, and others opting to pump wash into a ‘beer stripping
still,’ more commonly used in Bourbon production in the USA.
This produces low wines with a strength of around 85-90% ABV,
and takes much less time than a pot still, also using only some 60
per cent ofits energy requirements. If employing this method, the
low wines are diluted with water before secondary distillation ina
copper pot spirit still.

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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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

a hybrid combination of the two. The spirit collected after distillation

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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.

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CASE STUDY | Adnams

Case Study
Adnams
www.adnams.co.uk

Adnams Sole Bay brewery in Southwold, Suffolk was established


in 1872 by George and Ernest Adnams. Having grown from its
East Anglian base into a nationally-recognised brewing company,
the former Copper House at Sole Bay was given a new lease of
life, being converted into a distillery during 2009/10, after a new
brewhouse had been installed.
According to the company, “Adnams is the first brewery/distillery
(a bristillery?!) in England that’s able to produce high quality spirits
directly from malted grains all the way through to the finished
product. We use the same local ingredients to make our spirits -
barley, rye, wheat and oats - as we do for our beers.”
Adnams claims that Copper House is the most energy-efficient
distillery in the UK, and it also generates water and steam for
the brewery, “forming an integral part of our overall sustainable
production system.”
Distilling equipment was sourced from Carl GmbH in Germany,
and Corporate and Communications Manager Sarah Fisk
explains that the distillery is equipped with “A continuous beer
stripping column, a pot still connected to rectifying columns with
an additional de-meth column for vodka production, a Carter-
head pot still for gin production and an alembic-head pot still
for whisky production. The washes we use are produced by the
brewery and then pumped to the distillery when ready. They are all
bespoke recipes.”
She adds that “We didn’t take on specialist distilling staff
originally, our distiller came from Engineering, but as we’ve grown
we now have a team in the distillery as we operate 24 hours a
day. We have capacity for approximately 200,000lpa, split 50/50
gin/whisky.”
Adnams uses locally-grown barley, wheat and oats in the
production of its whiskies, vodka and gins, and also makes Rising
Sun Gin, Rye Hill Vodka and Rye Single Malt whisky using rye.
Sarah Fisk says that “We like to create premium, great tasting
products with good provenance. Our Chairman, Jonathan Adnams,
grows rye just a couple of miles away from the distillery, so apart
from creating great tasting vodka and whisky, we’re able to talk

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CASE STUDY | Adnams

about the provenance of the grain, too.”


Inevitably, having a long-established and highly-regarded drinks
business behind you is a major advantage when it comes to
venturing into distilling, as the abundance of rules and regulations
and necessity of keeping highly efficient records does not come
as a shock.
There is also the singular plus that routes to market are already
well-established and wide-reaching, with Adnams not only having
an estate of managed and independently-run on-trade licensed
premises, but also several branded retail outlets and a thriving
on-line trade.
“We have the benefit of an existing strong brand name in the
drinks market,” say Sarah Fisk. “We’re already known and trusted
by consumers and so they are willing to try our new spirits. Our
experience and knowledge of brewing and the various grains and
ingredients is also hugely beneficial.
“Export is relatively new market for us, both with beer and
spirits. It is a challenge for any business but having a varied and
great quality product range makes entry into new markets slightly
easier. There are so many small brands on the market now, and it
grows almost daily, so one of the biggest challenges is the amount
of competition.”
In terms of getting the word out about its products, Adnams
values social media very highly, as do most of its competitors.
“Social media is really important to us,” says Fisk. “It has so many
formats and is a great way of engaging with customers.”
From the start of its distilling venture, Adnams has been keen
to expand the range of English whiskies available, as well as
producing white spirits, and in 2013 Copper House released Single
Malt No. 1 - a three-year-old matured in new French oak barrels
- and Triple Grain No. 2 - made from malted barley, wheat and
oats, and aged in new American oak casks. The company’s whisky
portfolio now includes a Single Malt aged for four years in new
French oak barrels, Rye Malt Whisky, made from 75 percent rye
a

and 25 percent barley and matured for a minimum of five years in


new French oak, and five-year-old Triple Malt Whisky.
Additionally, the firm produces Adnams Spirit of Broadside,
described as an ‘eau de vie de biere,’ distilled from the brewery’s
best-selling dark ruby Broadside beer and matured in heavily-
toasted Russian Oak casks for 12 months.

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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.

Bottling and packaging


Even the most cursory glance at the shelves of any spirits
retailer — physical or virtual — will reveal how hard producers
strive to differentiate their brands from those of competitors. As
the marketplace for microdistilled spirits becomes ever more
crowded, making your own product stand out has never been
more important.
The two most obvious ways of doing this are by bottle and label
design, and the good news is that professional help is available
when it comes to this crucial aspect of marketing, with many
distillery consultants available, at a fee, to offer their expertise.
Bear in mind that the way your spirit is presented reflects your
own values, aspirations and ethics, and will be extrapolated into
supporting marketing materials, and even into your distillery visitor
experience if you have one. Getting it right is crucial.
Before deciding on bottling and packaging solutions it is probably
wise to know how much you want to sell your spirits for, factoring
their potential cost into overall calculations. Nobody wants to see
profit margins reduced significantly, however artistic and eye-
catching the presentation appears!
Another factor to bear in mind is the overall weight of your
product, which could have a bearing on distribution, and also
its desirability to overseas visitors whose luggage may already
be bulging with heavy items. One single malt Scotch brand that
shall remain nameless launched new release a few years ago
in a high-quality, heavy bottle fitted into a wooden casket, and
accompanied by a slab of genuine Scottish limestone. It looked
extremely impressive but shouted to the traveller ‘excess baggage.’

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

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Spirits production

of glass or crystal required for the project. Beyond that, a mould is


created before production can commence. All of this costs money,
but also time. If you have a specific launch date in mind, you may
want to allow up to six months for a bottle-making company to
come up with the goods
As suggested above, there is a choice between using glass or
crystal for your bottle, whether bespoke or selected from an existing
design already in production. Crystal is heavier and costlier, and
with a more traditional luxury perception, this may not necessarily
chime with the ethos of your product.
When it comes to closures, screw-tops definitely do not have
connotations of craft and provenance, so the extra cost of stopper
corks is well worth paying.

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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business grows, it could pay dividends to have your spirits contract-


bottled by a third party.
A company such as H&A Prestige Bottling Ltd
www.hacontractbottling.co.uk based in Lancashire - operates
11 bottling lines and handles everything from 3cl to 4.5 litre
bottles. Not only does the firm offer bottling facilities, but it also
provides guidance to ensure compliance with domestic and
export legislation and packaging solutions, relating to capping and
corking, labelling, case and carton design and bar-coding. Other
contract bottlers are listed in Appendix on page 147.

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

www.chromextech.com offers a semi-automatic benchtop


single head filling machine, which is a cost-effective piece of
kit for the microdistiller, while a four-head filler from the likes
of Vigo Ltd www.vigoltd.com should be able to handle around
500 bottles per hour. Second-hand bottling and labelling
equipment can be sourced from a number of UK companies,
including Perry Process Equipment www.perryprocess.co.uk
and SC Packaging Technology www.sc-packaging.com, as well
as manufacturers and retails of new kit, such as Aco
Packaging Ltd www.acosales.co.uk and Enterprise Tondelli
www.enterprisetondelli.co.uk. Other suppliers of bottling,
labelling and closure equipment are listed on page 149.

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

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Spirits production

the required specification, therefore ensuring consistency.


When ageing gin, vodka, rum or whisky in casks, the business of
quality control becomes more difficult, as each cask interacts with
the spirit it contains in subtly different ways. There is no absolute
constant, and larger scale distillers blend numbers of casks together
for greater consistency between batches. This is not necessarily an
option for the microdistiller, and his or her intention may, at any
rate, be to celebrate the individuality of casks by bottling them
separately. Consistency is not necessarily essential, but quality is.
Remember, the chances are that your customer base will probably
be relatively local and also more than usually knowledgeable.
Consumers are also likely to be enthusiastic users of social media
and will not be slow to make negative posts relating to products
they consider lacking in quality. First and foremost, however,
- -
quality and associated integrity should be at the heart of all
microdistilling enterprises. If ‘small’ isn’t necessarily good, then
why shop ‘small’?

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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

82
Financing a distillery

riting a business plan demonstrates a serious statement


of intent and forces would-be distillers to focus on
all aspects of the operation they plan to create.
Frequently, its composition causes the author(s)
to address issues to which they had not previously given
consideration. The plan should cover objectives, strategies,
sales, marketing and financial forecasts. It will show a
real understanding of the prevailing spirits markets and how the
new business is expected to perform, typically on a one to three
year basis.
A business plan will be required by any organisation to which
application is made to borrow funds, and will help to reassure other
investors, such as family and friends, that their money appears
to be in good hands. It is also a legal requirement by HMRC if the
intention is to use a still of less than 18 hectolitres capacity, and,
as HMRC guidelines note, “A business plan can help assure us of
your suitability for approval, particularly if you are a new distiller
without previous or existing licences.”
Apart from such formal requirements, however, a business plan
shows that this is not a casual hobby, but hopefully a productive
and professional venture worthy of respect and consideration
by all of those involved, including customers, suppliers and
potential employees.
Base the plan on detailed information, but do not go into too
much detail. Keep it simple, clear and readable, and present it
in a professional manner. It is important to include CVs of key
personnel associated with the business in an appendix. This is
particularly important if seeking external funding.

The business and products


Where relevant, explain the history of the business, when it
started trading, what progress has been made to date and the
structure of ownership.
Describe your products, avoiding jargon and overly-technical
statements, and outline how you intend to develop the business.
Provide an overview of the British distilling industry, and the size
and relevance of microdistilling as part of that.
Note key competitors, their market shares, along with your
own market share or target share, and outline how your products
differ from theirs in terms of price, quality, distribution and points
of uniqueness.

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The Microdistillers’ Handbook

Identify characteristics of customers within the microdistilling


sector and an analysis of your own existing customer base,
where possible. Outline trends within the sector and identify likely
future trends.

Sales and marketing


The most important part of the business plan is where you intend
to place your products in the market, describing any unique
selling features and how you plan to exploit them. Stress that
in the world of microdistilling, provenance and authenticity are
extremely important, and that your products will be priced to
reflect their exclusivity. Identify area where profits will be made.
Identify how you intend to market your products. Will
your distillery have visitor facilities and tour options, spirit
masterclasses or ‘schools,’ plus a retail area? If so, how much of
your revenue is likely to come through direct product sales and
monies generated by on-site activities? What is the value of this
personal interface in terms of creating brand loyalty, and what
are the associated costs of running such an operation?
How do you plan to let potential consumers know whatis on offer
at the distillery and details of your products? Are you intending
to employ a PR company or appoint an individual to cover this
aspect of the business?
Engaging with local tourist organisations is an important way
of achieving brand exposure, and the value of providing
information leaflets — perhaps with discount vouchers — to be
placed in visitor packs at accommodation sites and other venues
should not be underestimated.
Reassure readers of your business plan that you understand the
importance of the internet and social media. A well designed
and high quality website that is easy to navigate is invaluable
in terms of creating and raising the profile of the business and
its products, and also as what may be your premier sales outlet.
The likes of Facebook, Instagram and Twitter are extremely useful
for generating interest in your products, and such channels
should be exploited by whoever is handling your PR activities.
Explain routes to market other than direct sales from your venue
or by ecommerce. Will you also be selling through wholesalers or
individual retail outlets? What is the timescale for making sales
and receiving payment. What is the rate of repeat business and
what is the average sales value?

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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

individual product profit margins, timescale of payment from


debtors, extent of credit offered to you by suppliers and the amount
of finance you expect to receive and interest rates to be paid on
that finance where appropriate. If external funding by bank loan
is part of your model, allow a contingency of 10 to 20 per cent on
your funding requirements.
In some cases, banks or local business support organisations will
aid the production of financial forecasts without charge, and the
National Enterprise Network www.nationalenterprisenetwork.org
in England and Scottish Enterprise www.scottish-enterprise.com
in Scotland offer impartial, independent advice on financing and
all other aspects of starting up a business. Similarly, trade
associations such as the Wine & Spirit Trade Association
www.wsta.co.uk can often offer invaluable information
specific to the microdistilling industry, with existing members
frequently being keen to share advice on the ‘dos and don'ts’ of
starting out.

Does it all add up?


A simple exercise in SWOT analysis (strengths, weaknesses,
opportunities and threats) can be a valuable way of testing the
credibility in your business plan.
Strengths may include the uniqueness and quality of products,
the experience of the management team and workforce, the brand
name and presentation and even the ability to finance the venture
without external borrowing and consequent interest payments.
Weaknesses may include excessive reliance on external funding,
a narrow customer base or lack of management experience in the
microdistilling sector.
Opportunities may include growing demand within the sector
or the exit of key competitors.
Threats may include a decline in demand or the entry of an
ambitious rival with similar products in the sector.
Declare in realistic terms the anticipated status of the business
in three years’ time and set specific targets within that timeframe.
Outline key objectives, such as launching new products, generating
a higher level of sales, increasing profit margins, growing your
customer base, encouraging a greater volume of repeat business,
upskilling your employees and recruiting new ones with specialist
skills and experience. Create an action plan to detail how you will
achieve the objectives as outlined.

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Financing a distillery

Obtaininga licence to rectify or distil


HM Revenue and Customs (HMRC) is the organisation responsible
for licencing all British distilleries. At the heart of its activities is the
existence of Spirits Duty, “Payable on any spirits, or any mixture or
combination of spirits with anything else, at a strength of more than
1.2% alcohol by volume (ABV). Spirits are liable for Spirits Duty as
soon as they've been manufactured.”
The current relevant legislation (as of January 2018) is set out in Excise
Notice 39: spirits production in the UK www.gov.uk/government/
publications/excise-notice-39-spirits-production-in-the-uk/excise-
notice-39-spirits-production-in-the-uk for further information.
The main legal provisions relating to the production of spirits and
spirits rectifiers and compounders are to be foundin Alcoholic Liquor
Duties Act 1979, Spirits Regulations 1991 and Spirits (Amendment)
Regulations 2013.
Also relevant to spirits producers and spirits rectifiers and
compounders are The Customs and Excise Management Act 1979
and The Revenue Traders (Accounts and Records) Regulations 1992,
while product-specific legislation is contained in The Scotch Whisky
Regulations 2009.
Excise Notice 39 notes that “The same general requirements and
conditions will apply at all spirits production premises, whether
spirits production comes from fermented cereals, from fermented
molasses, by ‘cracking’ ethylene gas or by any other process. This
notice mainly focuses on the end-to-end process of spirits production,
from the application process to production and warehousing, and
payment of duty.”

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

The application process for new distillers


According to Excise Notice 39, “As a new distiller, there can be a lot
to consider before production begins. The table below provides
an overview of the steps you need to take before you can start
production. Detailed guidance follows on what you need to do,
how and when to do it. Please note, this describes the route of a
successful application.

Stage Action Notes


Identify production and warehouse
. . premises: if not yet purchased, you'll
Preparation | Prepare a business plan need evidence that you’re planning their
purchase
: You may need to apply for a letter of
or obtain a
1. Apply for indication of likely approval to satisfy
distiller’s licence (DLA1) . .
bank lending requirements, for example
. You may need to apply for a letter of
2. Apply for or obtain an
indication of likely approval to satisfy
approval of plant and . .
bank lending requirements,
process for example
See Excise Notice 196 for information
Application 3. Gain approval for on the requirements to provide a
(atleast 45 | a warehouse to hold financial guarantee for the warehousing
days before | spirits (EX69) and gain of produced spirits, and registration
production authorisation as a as owner of goods in a third party
begins) warehousekeeper warehouse, depending on your
circumstances
Where appropriate, register
for the Alcohol Wholesaler If you plan to sell alcohol to other
Registration Scheme businesses
(Excise Notice 2002)
Where appropriate, apply for producing Scotch whisky, Irish
If you'll be
verification under the Spirit whiskey, cream or poitin or Somerset
Drink Verification scheme cider brandy

When all licences and approvals have been received by the


applicant, production can begin.”

Before applying to HMRC


Identify production and warehouse premises. If you don’t own
these, you'll need to provide evidence to show you are planning to
purchase them with any application you make.
Note that any variations between initial proposals and final plans
could lead to a delay or rejection of your application.
At least 45 days before you start to produce spirits:
Use form DLA1, Alcohol duties: application for a distiller’s licence
and approval of distillery plant and process to apply.

88
Financing a distillery

Alongside your DLAI form, provide us with the required


information to seek approval of plant and process.
We can issue a letter of indication to help you in securing finance
to complete your plans where we're satisfied from the details in
your application that you are likely to succeed.
We'll only issue the final distiller’s licence when we're
satisfied that all necessary requirements are in place, including
premises security.
Use form:
EX6]1 to apply for authorisation as a warehousekeeper
EX69 to apply for approval to operate an excise warehouse
If you wish to store spirits in a third-party warehouse. Apply for
registration as an owner of warehoused goods using form EX60 —
Excise warehousing: application to be an owner of duty-suspended
goods held in excise warehouses
Please note that 45 working days is the standard time taken to
process applications. The actual time taken to process applications
depends on the circumstances of each individual applicant. For
example, if you’ve not provided all the required information or
the application refers to premises that require building work, the
time taken to process and approve the application may be longer
than 45 days.
Once you've received your:
distiller’s licence
approval of plant and process
proper warehouse and warehousekeeper approvals
You are then ready to begin to produce spirits.”

Piant and process


At the same time as you apply for a distiller’s licence, you must
apply for approval of the plant and process you intend to use. The
following information is required by HMRC:
Address of proposed distillery
Plan of premises
Full description of the manufacturing process, including size
of still
e The number and
description of the vessels used in the
manufacturing process, their capacity and use of
all plant
Your intended source of raw materials and the range of
products you intend to produce

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The Microdistillers’ Handbook

e Where the product will be stored, including


security arrangements
According to HMRC, “We may refuse to issue a licence where
the largest still to be used has a capacity below 18 hectolitres.
However, we'll consider applications for a distiller’s licence
providing you use the still for the commercial production of spirits.
You must submit a business plan to support your application for
commercial production.
If you intend to produce a UK spirit drink with a protected
Geographical Indication (GI) you must apply for verification under
HMRC'’s Spirit Drinks Verification Scheme in addition to the process
described above for obtaining a distiller’s licence and approval of
plant and process. The current spirit drinks with protected GI status
in the UK are Scotch whisky, Irish whiskey, cream and poitin, and
Somerset cider brandy.
“We'll only grant approval to applicants who can demonstrate
that they are fit and proper to carry on a controlled activity.
This means HMRC must be satisfied the business is genuine and
that all persons with an important role or interest in it are law
abiding, responsible and don’ pose any significant threat in terms
of potential revenue non-compliance or fraud.”

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

Still room , Regular checks: of vessels and plant Management checks


and distiller’s to ensure any lapses in
and have restricted access : :
warehouse security are put right
Measures to secure all vessel
Vessels and openings are locked or sealed and Security reviews and
plant that signs of tampering or pilferage management checks
don’t go unnoticed

Technology of a high standard that


controls access to all areas and
vessels on the site

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Financing a distillery

We expect all plant to be:


Accessible
Readily identifiable
With the exception of working stills, capable of being opened
as required for our inspection
and that all:
Wash backs
Feints receivers
Spirit receivers
are gauged and calibrated, with calibration tables
readily available.
There's no requirement to mark particular items, however
we expect the use of plant and vessels to be identifiable in your
business records.”

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.”

Measuring wort, wash, gravity & alcoholic strength


According to HMRC, “You must keep an accurate record of
the quantity and gravity of wort and wash collected. The
quantity and gravity of wort and wash should be measured
using recognised industry methods. You should use any
industry-recognised equipment, in accordance with the
manufacturer’s protocol.
Automatic densimeters must measure density according to
regulation 18 of the Spirits Regulations 1991. The automatic
densimeter must carry out density measurements with
accuracy and precision. All of the approved densimeters have
been 5 decimal place machines, and when used according to the
operator's instructions, have proved to be accurate and precise
enough for our purposes.”

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

or manufacture of spirits in any other way. It’s not normally


payable until the spirits are taken out of warehouse storage.
We may ask you to pay duty on any losses, which occur at
your distillery or while transferring spirits to a warehouse,
which are not due to natural wastage or for which you don't have
an acceptable explanation.”
The ‘Duty Charge’ is normally based on the litres of alcohol
contained in the spirits and any feints produced, less the litres of
alcohol in any feints brought forward from the previous period.
This is known as the actual charge.

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.

Age and origin


Certificates of age and origin attest to the authenticity of UK-
produced spirits. HMRC issues these to support exporters and
producers of UK-manufactured spirits and facilitate entry of their
product into overseas markets.
The majority of issued certificates are in respect of Scotch
whisky exports. The certificates are an essential part of the
industry’s efforts to protect Scotch whisky in overseas markets
from counterfeiting.
According to HMRC, “We issue certificates of age and origin
to UK applicants who are able to provide a satisfactory audit
trail of the origin of the product. This is restricted to distillers
and brand owners and manufacturers and holders of goods in
duty-suspense.
We may also issue certificates of age and origin to overseas
applicants for spirits previously consigned that are being sent on
to a further overseas destination (for example, from UK to France
to Taiwan), providing the applicant provides a certificate of non-
manipulation and also holds satisfactory documentary evidence
of the spirits’ origin.
There’s a charge for certificates - and you need to contact by
email: [email protected].”

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The Microdistillers’ Handbook

Spirits rectifiers and compounders


HMEC Excise Notice 39:

Rectifer Compounder

You're a compounder if you combine or


mix plain spirits or previously compounded
ou're a rectifier if you
re-distil spirits (with spirits with any other substance, except
Definition : . water, so as to distinctly alter the
or without flavouring :
: : character or flavour of the plain spirits
ingredients) or compounded spirits, producing a new
compounded spirit

You must hold a compounder’s licence if:

you don’t have a rectifier’s licence and you


You must hold a manufacture (by compounding)
rectifier’s licence if
When do
you are a rectifier or alcoholic liquors other than mixed drinks
ye

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)

If you’re compounding in a still and have


a rectifier’s licence, or if you compound
spirits solely in order to make:

foodstuffs produced solely for


consumption on the premises

: Not applicable. You'll food products, such as liqueur chocolates


When don’t .
always need a licence or the liquid fillings that are put into them
Ineeda
to rectify (including for
licence?, own use) flavouring essences of the type used solely
in confectionery or other food, mineral
waters or medicines

perfumes

if you’re compounding spirits for your


own use

What For duty-suspended


warehouse For duty-suspended spirits, approved
facility do a approved trade
Spirits, trade facility warehouse
facility warehouse
|

need?

For duty-paid spirits, none For duty-paid spirits, none

You apply for a rectifier’s or compounder’s licence by completing


form L5, Alcohol duties: application for a licence to carry on an
Excise Trade. There's no charge for the licence.

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Financing a distillery

Alcohol Wholesaler Registration Scheme (AWRS)


If you sell alcohol to another business you may need to apply to
register for the Alcohol Wholesaler Registration Scheme (AWRS).
HMEC states that “You must have a valid Government Gateway
User ID and password. If you don’t have an account you'll need to
create a Government Gateway account.
To verify your business details, we'll try to match them to an
HM Revenue and Customs (HMRC) record that holds your Unique
Taxpayer Reference (UTR).
This will be your:
Corporation Tax UTR as a limited company
Self Assessment UTR for any type of partnership
Individual Self Assessment UTR as a self employed or sole trader
You can apply for approval as a:
Limited company
Sole trader/self-employed
Business partnership
Limited liability partnership
Limited partnership
Group
As a new business, you may have to provide additional
information after applying. You would usually supply this during
your site visit and it would include:
Your business plan
Letters of intent from suppliers and customers
Third-party distribution companies
All businesses that supply alcohol to other businesses for resale
need to apply. This includes:
Breweries and microbreweries
e Wine
producers and vineyards
Spirit producers
Cider producers who make more than 70 hectolitres of cider a year
Wine importers
General wholesalers selling alcohol, including cash and
carry businesses
Specialist wine wholesalers

Before you start


Make sure you have all the information you'll need before
you begin to apply online. As well as the relevant UTR and
your Government

95
CASE STUDY | Fulton

CASE STUDY
Fulton
www. fulton.co.uk

If you look across a broad range of food and beverage processes,


there is a large demand for high quality, dry steam and one
company that knows all about this is Fulton.
From distilling and brewing to jet cooking and the cleaning of
barrels and bottles, the list of applications for steam is almost
endless and, says managing director Carl Knight, “Fulton has been
heavily involved with steam raising across the food and beverage
processing sector for decades.”
Steam is key to many processes in the food and beverage
sectors and efforts have been targeted at making more innovative
products. One traditional market for Fulton was the supply of small
gas- or oil-fired vertical boilers for numerous applications, but these
boilers are often seen as too large for small batch operations ora
micro distiller’s valuable space.
As an alternative to fuel-fired steam boilers, and with the
added bonus of no emissions restrictions, no flue systems or gas
installation/oil storage and deliveries to worry about; an electric
boiler, is the only real viable solution. Additionally, with steam loads
for a micro-distillery perhaps only being required occasionally,
electric boilers are quick to power-up to operational performance
and can be quickly and easily shut down again within just a few
hours and without the hassles associated with powering-down a
fuel-fired boiler.
Perhaps more important to a micro-distiller are the ongoing costs
of running and maintaining a fuel-fired steam boiler versus an
electric one. For oil-fired boilers for example, there’s no requirement
to store essential fuel, which also brings with it space and health &
safety implications. Additionally, an electric steam boiler is cheaper
to service and maintain and doesn’t require the same level of boiler
operator training as fuel-fired alternatives.
With outputs from its boiler range extending from 9 kW/hr for
the Mini Compack to 300 kW/hr for the Europack, and its larger
electric boilers able to operate at turndowns up to 12:1, Fulton’s
electric range genuinely fits the bill for many processes including
micro distilleries and micro breweries. Their compact and portable
size means they are small enough to install locally to existing

96
CASE STUDY [| Fulton

equipment, therefore reducing the need for complicated pipework;


and the pressure vessels are backed by a five-year warranty as
standard.
As with all its products, Fulton can supply boilers and ancillary
equipment as separate, unconnected items for installation to be
carried out on site, or as complete skid-mounted systems that
simplify installation and reduce costs. These skidded systems
are built and fully tested in the UK and then broken down into
modular units, delivered to site and installed and commissioned.
This procedure has proved to be quicker and more cost-effective
for both Fulton and its customers.
“Fulton is customer-focussed and likes to work closely with
contractors, consultants and end-users to ensure that we provide
exactly what is needed.” says Carl. “We generally find that the
customer doesn’t always know exactly how much steam is required
for their process, so we can take total ownership of the project
and offer advice on size, pressure, etc. to ensure we deliver the
right solution.”
Beyond its product portfolio, Fulton also offers a full range of
aftercare services ranging from training, service and spares, to
helping clients achieve HSE compliance with Technical Boiler
House Risk Assessments and higher efficiencies from services
including steam system reviews and steam trap surveys.
The company also prides itself on the many relationships it
has with micro distilleries and, in such an exciting and vibrant, if
sometimes technically-challenging industry, considers itself the
ideal partner for new and existing distilleries.

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The Microdistillers’ Handbook

Gateway details, you may need the following information:


Your VAT number and company registration number (if you
have one)
The addresses of your additional trading premises
For UK residents — the names and National Insurance numbers
of all business directors, company secretaries or partners
For non-UK residents — the names and passport numbers ofall
business directors, company secretaries or partners
The names, addresses and VAT registration numbers of up
to five of your largest alcohol suppliers, by volume (if you
have suppliers)
You might also have to tell us about:
The products you sell
The types of customer you have
How you take orders

Applying online to register for the AWRS service


You must apply giving notice of at least 45 calendar days. This will
allow HMRC to process your application and undertake the fit
and proper test. You'll get an acknowledgement with a reference
number of your application. You must wait until you get approval
from HMRC before you start trading.”

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

the following product types:


Whisky/whiskey (W)
Gin (G)
Vodka (V)
e Rum (R)

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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through the website. You'll need to provide:


Your duty stamps registration number
The number of stamps you need for each product type
The address of the premises where the stamps are to be affixed
The name and address of the person who will be affixing the
stamps (if not the registered person)
The address of the premises where the goods will be held until they
have stamps affixed to them (ifyou're bringing unstamped goods
into the UK and you're not holding them in an excise warehouse).
In most cases you can choose whether to use free-standing
or label stamps according to your individual circumstances. If
you're an authorised warehousekeeper, a registered consignee, a
registered commercial importer or a tax representative you may
order label stamps as well as free-standing stamps.

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.

Accounts, records and duty payments


According to HMRC, “The following requirement has the force
of law and is made under regulation 6 of the Revenue Traders
(Accounts and Records) Regulations 1992.
You must keep a record of the spirits you've produced. The record
must include the:
Date and time
Spirits receiver or other vessel
Dip or gauge reading
Temperature and hydrometer readings
Quantity of spirits, adjusted to a temperature of 20°C, with

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Financing a distillery

details of bulk volume, strength and litres of alcohol produced.


Information is also required on processes and operations such as:
- fermentations
- distillations, including the start and finish of each
distillation period and any process or stage of the process
in the manufacture of spirits
- deliveries to warehouse
Your normal business records should be enough, but we may ask
you to modify them if needed. There's no prescribed format and
records may be electronic or written — but they must be:
Accurate and kept up-to-date
Readily accessible to us
Kept for at least six years from the date of the last entry.
Your records must be available for inspection at all reasonable
times. You must keep all records and documents relating to:
Stock
Handling
Purchases
Sales
Imports
e
Exports
Yeast slurry.
In addition, we may also wish to look at:
Profit and loss and trading statements
Management accounts and reports
Balance sheets
Internal and external auditors’ reports
e
Any record maintained for a business purpose.
We're aware that much of the information we have access to is
confidential and we'll take great care to respect your confidentiality.
Any incidents that affect operations, for example a breakdown of
plant, must be recorded accurately in your business records.
You need to complete a quarterly distillery production return -
form W21 - at the end of March, June, September and December
each year. You'll need to complete a return for each different class
of spirit you distil.
In order to pay Excise Duty on spirits held in an excise warehouse,
you, as the warehousekeeper, must complete either form W5 or
form W5D. Alternatively you can use the Alcohol and Tobacco
Warehousing Declarations (ATWD) online service www.gov.uk/
guidance/alcohol-and-tobacco-warehousing-declarations.

101
CASE STUDY | Allen Associates

CASE STUDY
Allen Associates
www.allenhpe.co.uk

The team at Allen Associates have left their mark on distilleries


across Scotland, thanks to an in depth understanding that one
size does not fit all when it comes to design. Each project brings
forth an array of challenges, calling upon Allen Associates’ team of
highly skilled engineers who thrive when faced with the opportunity
to find, develop and implement the most appropriate and effective
bespoke design solutions for their clients.
In the eyes of Allen Associates, creativity and flexibility are
focused at the heart of distillery design, and when the owners
of the Ncn’ean estate on the west coast of Scotland made the
decision to use their land to build a malt whisky distillery, they
called upon the skills of Allen Associates to help them bring their
vision to life.
As part of the design process, the team take a phased approach
to creating the aforementioned vision. Creating a distillery is
complex in nature, so while working on the Ncn’ean distillery they
adopted a creative and flexible approach which enabled the whole
process to run smoothly.
The initial phase involved two elements, firstly the preparation
of the distillery mass and energy balance in order to confirm
production capacity and service consumptions. This was then
followed by the production of a high-level budget cost for the
process plant.
These two first elements were set out and completely within a few
weeks of beginning the project, while also allowing confirmation of
utility plant sizing, and equally importantly, the identification of an
overall budget which was used for final project funding.
Having flexibility throughout the process was important to a
smooth build. The chosen distillery capacity was a one tonne
mash system capable of producing approximately 90,000 laa
per year, operating at one mash per day for five days/week. Allen
Associates designed on an 8 hour cycle time and operating 24/7
this production capacity could be increased up to 375,000 laa per
year by simply installing additional fermenters.
At this point in the process, the project was fully approved and
Allen Associates were engaged to work on more detailed process

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CASE STUDY | Allen Associates

engineering activities, such as P&ID development and layouts.


As the plant was to be installed in an existing historic farm
steading with limited space, it was clear that a creative approach
to the distillery layout would be needed. Through the preparation
of detailed 3D plant models and close liaison with LH Stainless
and other members of the design team, all issues were resolved
and a fit for purpose, custom layout was produced.
This project yielded excellent results thanks to the close working
relationships with the client, as well as attention to detail from
the AA team. They ensured that all challenges were smoothly
overcome and the distillery was up and running as per the design
they had created. A focus on value engineering allowed budgets
to be maximised without any loss in quality.
Layout design issues resolved through flexible working and
creative thinking in partnership with lead fabricator LH Stainless,
resulting in a distillery that not only looks great but is easily
accessible for operation, as well as being designed to relevant
standards and guidance to ensure safety compliance.

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You must complete form W21 Alcohol duties: Quarterly Distillery


Return - declaration of materials used and spirits produced return
quarterly for each class of spirit you produce.
We give each distillery a unique five-digit identifying number.
We'll notify you of your number and you should use this on your
quarterly return.
If you manufacture more than one class of spirits we'll view this
as more than one distillery. We'll allocate a unique number for each
class of spirits that you produce, for example you'll receive one
number for malt spirits and another for grain spirits if you produce
both. You must complete your quarterly return (with the correct
identifying number) and submit it to the address on the form within
14 days of the end of the calendar quarter.
Returns must be signed by:
You (as the proprietor)
e A
partner or director
The company secretary.
If this isn’t possible, you can allow someone to sign the return on
your behalf. This must be in writing:
In aletter of authorisation to the individual concerned
Contained in their job description
Contained in your management control manual
Insome other form contained within your business records.”

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

aking high-quality, authentic spirits with great


provenance is all very well, but you won't be making
them for very long unless someone buys it!

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:

The Consumer Contracts Regulations 2013


The Consumer Contracts (Information, Cancellation and
Additional Charges) Regulations apply to sales of goods or services
to consumers without face-to-face contact. This includes selling
by mail order, online, using digital television or by telephone, fax
or text message. The Regulations replaced the former Distance
Selling Regulations.
Under the Regulations, you must:
Give customers specified information before a sale is made
Confirm prior and certain other information in a durable form
(eg in writing or email)
Usually give customers a right to cancel their order
Normally fulfil your contractual obligations within 30 days
unless otherwise agreed
Usually give customers a full refund up to 14 days after receiving
their goods, if they change their mind.

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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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The Microdistillers’ Handbook

if the customer is not given written (‘durable’) confirmation of


the required information, and written confirmation of their right
to cancel.

The Consumer Rights Act


The Consumer Rights Act covers goods and services ordered at
home (for example through mail order catalogue, direct selling or
online) and digital content. All goods must be as described, fit for
purpose and of satisfactory quality. If goods are found to be faulty,
you must give a full refund up 30 days after the item was purchased.
If goods prove faulty up to six months after purchase and they can't
be repaired or replaced, consumers are also now entitled to receive
a full refund in most cases. Consumers are not entitled to demand
arefund or replacement just because they change their mind.

The Ecommerce regulations 2002


The Ecommerce Regulations apply to any sales made electronically:
for example, using email, through your website or via text.
The regulations apply to sales to businesses as well as to
consumers. (Distance sales to consumers using electronic means
are covered by both the Ecommerce Regulations and the Consumer
Contracts Regulations.
Under the Regulations, when you advertise or sell you must
provide information including:
Your business name, geographical address and contact details;
Details of trade organisations or professional bodies you
belong to
Information on any authorisation scheme (eg for
financial services)
Your VAT number
Prices, and whether they include taxes and delivery costs.
Any commercial communications (such as emails) must be
clearly identifiable as a commercial communication from you,
and clearly identify any promotional offers, competitions or games,
and any conditions.
If you have automated systems allowing orders to be placed
electronically (eg through your website), you must also provide
additional information, including details ofhow contracts are made
and how errors can be corrected. You must also provide prompt
confirmation of the order.
Additionally, any advertisements on your website need to

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Routes to market

comply with regulations on advertising, and if your website collects


information from visitors (for example, using cookies) you must
make this clear in a privacy policy. Any personal information
collected must comply with data protection rules.

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.

Marketing and social media


The principal marketing tools at your disposal are the
reputation of your products and the way in which they are
presented. Professional sales staff are likely to be beyond the
budget of most start-up microdistilling ventures, and there is a
degree of satisfaction in achieving sales yourself. After all, nobody
has the same degree of commitment and passion to the products
in question, more detailed knowledge of how they are made or the
type of consumers to whom they are most likely to appeal.

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Independent retailers tend to like dealing with actual producers,


and the personal touch can often pay dividends. Learn from your
mistakes when pitching your spirits and take constructive advice.
Most of all, be resilient!
However successful a salesperson you turn out to be, the fact
remains that a great deal of your business will be conducted via
the internet and by the websites of your company, as well as those
of wholesalers and individual retailers.
The more sales you can generate through your own website
the better, as you are taking all the profit, and don’t have to givea
share to a third party. It follows that your website should be well
presented, reflecting the ethos of the company and its products,
and easy to navigate. Paying for a website designer to work their
magic may well turn out to be money well spent.

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.

Media and promotion


Press releases do, however, have an important part to play in
announcing new products, events or facilities, and awards
won by your spirits. Many microdistillers feel comfortable
in creating their own databases of contacts to whom such
press releases should be sent, including television and
radio media, print and internet journalists, distributors, retailers
and existing customers. If composing such press releases, always
bear in mind that the person reading it is almost certainly
less fascinated by the topic than you are, so keep it tight
and factual, include bullet points where possible, give

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Routes to market

clear contacts for further information and ideally access


to imagery.
Other distillers feel that it is worth employing the services
of professional PR companies, in order to ensure that the job
is carried out with maximum efficiency and professionalism.
If choosing to use an agency, decide whether a high-powered
London-based company or a lower-key one with more local
connections to your area best suits your business model in terms
of required levels of exposure, not to mention your budget!
Paid-for advertising is another marketing angle worthy of
consideration, but a scattergun approach will be too expensive
and not necessarily any more successful than carefully targeted
adverts in local newspapers, magazines and specialist drinks
publications. As with press releases, keep adverts simple and
uncluttered, perhaps employing the services of a graphic
designer to make them more eye-catching. Bear in mind that
there is no point in advertising unless your products are available
for people reading those adverts. Advertise in accordance with
your distribution model.
Promotional events at food and drink festivals offer an
invaluable way of getting potential purchasers to sample your
spirits, and also gives you the chance to engage with them ona
one-to-one basis.
If you have a visitor centre at your distillery or offer tours of it
on amore modest basis, the same advantages apply as at festivals
— the chance to
get your spirits into people’s mouths and your
words into their ears. It is surprising how easily brand loyalty
can be encouraged.
If your budget runs to a bespoke visitor centre then there are
opportunities to sell not only the whole range of spirits you
produce but also branded goods, such as appropriate glasses,
t-shirts, baseball caps - the list is practically endless, and such
products represent free advertising.
Remember, however, to be true to the brand values you espouse
and the connections you wish to make with local heritage and
industry. The Three Stills distillery in the Scottish Borders sells
a particularly handsome range of tweed caps and scarves, with
an original tweed pattern designed and produced by a milla few
hundred yards away. This is appropriate and authentic because
the distillery’s home town of Hawick has long been a major
manufacturer of tweed and knitwear.

111
CASE STUDY | East London Liquor Company

Case Study
East London Liquor Company
www.eastlondonliquorcompany.com

The East London Liquor Company was founded in 2013 by Alex


Wolpert and operates from a former glue factory in Bow, close to
the Olympic Park. Previously, Wolpert had run the Barworks chain
of pubs and bars, and Initial funding for the distillery project
came from Wolpert himself and a team of private investors.
A quarter of the total investment was spent on purchasing
a bespoke column and pot distilling system from Holstein of
Germany, along with a bottling plant that ensures rigorous
quality control.
“It’s lovely to have ownership and autonomy over all the
processes,” says Wolpert. “A box of gin does not leave the
premises if the box or label isn’t right - it’s checked at
every step.”
From modest beginnings the business has grown to a level
where distillery sales amounted to 1.9m in 2017, while shop
takings and income from distillery tours added another 1m to
that figure. A recent crowdfunding programme raised around
1.5m, twice the target set by Wolpert and his team, with 80
per cent of that target reached in just one day.
The company is the first gin, vodka and whisky distillery in east
London in over 100 years, and started out with four members
of staf initially producing some 1,000 bottles of gin for local
accounts and also operated a bar at its Bow Wharf site. Staff
numbers have swollen to 30, and more than 12,000 bottles per
month are now filled under the watchful eyes of Wolpert and
head distiller Tom Hills.
The Bow Wharf bar at the distillery has been expanded into a
restaurant and bottle shop, and a second bottle shop operates
in Borough Market.
In addition to its own spirits, the shops sell a range of imported
bitters and other spirits, including whiskeys from California’s
Sonoma County Distilling Company, which produces spirits
using direct-fired copper alembic pot distillation. Additionally,
East London has collaborated with Wisconsin’s Death’s Door
distillery and Gotlands brewery and distillery in Sweden, as well
as using Sonoma whiskey casks for barrel-ageing gin.

112
CASE STUDY | East London Liquor Company

According to Alex, the impetus behind the creation of the East


London Liquor Company was the fact that “There wasn’t anyone
on our scale making gin at our price point in the UK. The idea was
to make an excellent gin, and not be greedy about the margins,
to make a Londoner’s gin that everyone can afford.”
ALondon Dry Gin, made from 100 per cent British wheat spirit
using vapour and direct infusion, heads the line-up, along with
Premium Batch No.1 Gin, flavoured with Darjeeling tea, and
Premium Gin Batch No.2 Gin, described as having “a distinctive
herbaceous and savoury profile.”
The distillery has also ventured into barrel-aged gin, with the
first release being a London Dry Gin, that had spent 14 weeks
in new French oak casks.
Wolpert goes on to explain that, “The idea is to release a new
expression every six to eight weeks, as much for our learning
and development as to share this really interesting category
with bartenders and customers who are keen to try a slightly
different take on gin.”
A100 per cent British Wheat Vodka is distilled in the company’s
Holstein copper pot still, while perhaps the most unusual product
currently available from East London is Demerara Rum. This
is produced using molasses from Guyana, and the company
describes it as being “microdistilled in wooden two-column
a

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

amazing and we want to produce more of it, quadrupling our


production by 2022. We want to expand our sales team to
push UK and international growth and get our spirits into more
people’s glasses.”

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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

Rules on labelling and packaging


According to gov.uk, “To sell food and drink products, the label
must be:
Clear and easy to read
Permanent
e
Easy to understand
Easily visible
Not misleading
For spirits the label should include the actual alcoholic strength
by volume bya figure to no more than one decimal place followed
by the symbol ‘% vol.’ and preceded by ‘alcohol’ or ‘alc’, the net
quantity, name or business name and address of the business
operator, country of origin, place of provenance and protected
designation of origin if applicable.
Within the EC, “Mandatory information shall appear in a
language easily understood by the consumers of the Member
States where a [product] is marketed. Within their own territory,
the Member States may stipulate that the particulars shall be given
in one or more languages from among the official languages of
the Union.”
Health warnings are not compulsory, but in March 2017 the
Department of Health and the British Retail Consortium published
new UK labelling guidelines for the alcoholic beverage industry.
The new guidelines follow updated advice from the UK’s Chief
Medical Officers on the maximum number of units that should
be consumed in a week, as well as recommended frequency of
alcohol consumption.
The revised label is designed to ensure that shoppers will have
access to consistent information and make an informed purchase.
Some 10 months after it appeared, the Royal Society for Public
Health (RSPH) declared that all alcoholic labelling should carry
mandatory warnings to address what it referred to as an ‘awareness
vacuum.’ The RSPH proposed using traffic light colour coding —
such as those on other food items in the UK to indicate levels of
fat, salt and sugar and suggested other information such as the
government’s 14-unit guideline, the link between alcohol and
cancer and drink-driving warnings.
However, John Timothy, chief executive of The Portman Group
(the trade group composed of alcoholic beverage producers and
brewers), responded by saying that the study showed there was
“little public interest in a radical overhaul of drinks labelling” and

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Routes to market

86 per cent of respondents to the survey wanted purely factual


information and 80 per cent wanted less cluttered labelling.”
Christopher Snowden, head of Lifestyle Economics at the Institute
of Economic Affairs, backed up Timothy's remarks by declaring
that “Mandatory labelling could help to inform consumers if it is
strictly factual. Calorie counts, for example, should be carefully
considered after Brexit. But the new drinking guidelines have no
scientific credibility and companies should not be forced to put
suspect information on their products.”
Curiously perhaps, there is certain information that spirits’
producers might wish to divulge but are prohibited from doing
so by EC regulations. Under Regulation 12.3 of the Spirit Drinks
Regulation No 110/2008, any mention of a maturation period or
age can only refer to the ‘youngest alcoholic component in a spirit.
This causes problems for whisky distillers in particular, who
wish to promote ‘transparency’ in their products. The independent
bottler Compass Box had to remove information from two 2016
bottlings, Flaming Heart and This is Not a Luxury Whisky, as
the bottler revealed the distilleries involved, the cask types, the
ages and the relative proportions in the blend. A complaint led
to the Scotch Whisky Association (SWA) informing Compass Box
that it had broken the law, and the information in question was
subsequently removed from its website.
The website www.scotchwhisky.com supported the call for
greater transparency, and in January 2017, Bruichladdich CEO
Simon Coughlin wrote to the site as follows:
“Bruichladdich were proud pioneers of the No Age Statement
(NAS) concept in whisky, but we recognise that our increasingly
knowledgeable client base appreciates clear information about the
age of every component we use to create our multi-vintage cuvees.
In April 2016 we therefore introduced a ‘Classic Laddie Recipe’
on our website. Interested clients can simply enter the five digit
batch code printed on every bottle of The Classic Laddie to find
the particular composition of casks used in each unique vatting.
We are pleased to be able to announce that we have now
extended this programme to our heavily peated Port Charlotte
Scottish Barley. Exactly the same system applies — there is a field
provided on the appropriate product page into which the client
can input the batch code and reveal the recipe. Once again, this
can be expected to vary from vatting to vatting.
We are confident that, by introducing this greater transparency,

117
CASE STUDY | Ballindalloch Distillery

Case Study
Ballindalloch Distillery
www.ballindallochdistillery.com

Many new distilleries producing whisky follow the same formula


of raising money from external investors, offering casks of spirit
for sale to the public, releasing new-make spirit to consumers and
raising as much revenue as possible through public access to the
distillery itself. Not every new distillery conforms to this model,
however, and one that certainly doesn’t is Ballindalloch, located
in the heart of Speyside.
Ballindalloch distillery has been created in a 19th century
farmstead by members of the Macpherson-Grant family, who
have inhabited nearby Ballindalloch Castle since 1546. Guy
Macpherson-Grant, who is the driving force behind the distillery
project, is member of the 23rd generation of his family to live at
a

Ballindalloch Castle, and his great-grandfather, Sir George, was


involved with the building of Cragganmore in the 19th century.
Indeed, the MacPherson-Grants were co-owners of Cragganmore
until 1965.
Ballindalloch has been developed as part of the family estate
using existing finances and is being promoted as Scotland’s first
‘single estate’ distillery. All barley used in whisky-making will be
grown on the Macpherson-Grants’ Home Farm, and the variety
currently being cultivated is Concerto.
The first spirit flowed in September 2014 from a plant comprising
a one-tonne copper-topped mashtun, four Oregon pine washbacks
and a pair of relatively small stills with short necks, to help achieve
the desired heavy Speyside style of whisky, in tandem with a pair
of worm tubs. The distillery is avowedly manual in operation, with
no fewer than 115 hand-operated valves in the system.
‘Front of house’ at Ballindalloch is Brian Robinson, who for
many years was the public face of Glenfiddich in his role as Chief
Guide. “Ballindalloch is really just another facet of the sporting and
agricultural estate rather than an out and out distilling business,”
says Robinson. “This is like going back 150 years to what whisky
was like then. It’s a small, old-style distillery, making a heavy
Speyside character of spirit, using worm tubs for condensing
purposes rather than modern ‘shell and tube’ condensers. We’re
aiming for an old Cragganmore/Mortlach style of whisky, something

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
|

applicant it would be to start the process of talking to HMRC much


earlier than you think is necessary. As an aside, the licence takes
the form of a short letter on one side of A4 paper, it is not the
glamorous document you might imagine!”
Robinson is keen to point out that when it comes to ongoing
administration, organisation and accuracy are crucial.“From
keeping logs of malt and yeast quantities used to the day-to-day
detail of noting volumes and gravities, there is something that
needs administrative input every day. We fill casks weekly, So we
only have to take an account of how much spirit we are filling into
casks once a week. We keep notes of how muchis filled into each
cask, at what strength and where those casks are kept.
“We need to submit returns to HMRC each month detailing our
warehousing activity and a quarterly return relating to production.
As we have a warehouse that is remote to the distillery, when we
move casks there, we also have to issue paperwork for that, too.
The key to keeping HMRC happy is to ensure everything is accurate,
on time and as mentioned before, able to be easily audited.”
|

120
Routes to market

we continue to comply with both the spirit and the letter of


the relevant EU legislation (Regulation 12.3 of the Spirit Drinks
Regulation No 110/2008), the fundamental purpose of which is to
protect the interests of the consumer.
We believe the following quote from the regulation supports our
position: “The measures applicable to the spirit drinks sector should
contribute to the attainment ofa high level of consumer protection,
the prevention of deceptive practices and the attainment of market
transparency and fair competition. By doing so, the measures
should safeguard the reputation which Community spirit drinks
have achieved in the Community and on the world market by
continuing to take into account the traditional practices used in
the production of spirit drinks as well as increased demand for
consumer protection and information.”

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

121
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

122
Routes to market

be an invaluable way of keeping tabs on what drinks are becoming


popular and the hotspots where they are being consumed.
There is something ofa gin ‘season in the UK, which excludes the
winter months, but in Australia, for example, the opposite is true,
with January and February marking the start of gin’s popularity.
Exporting to Australia therefore helps to even out the spirit’s
sales seasonality.
Exporting may also mean changing packaging, with different or
additional labels to provide information — particularly relating to
health warnings — that is legally required in some overseas markets,
though not in the UK. Additionally, the US works with 75cl bottles
rather than the European standard 70cl bottles, and if exporting
to hot countries it may be necessary to use screw caps rather than
cork stoppers, as the heat inside freight containers can cause the
spirit to expand and dislodge the cork.
Above all, value personal interaction and keep close tabs on rules,
regulations and requisite paperwork. If you thought there was a
lot of bureaucracy involved in setting up your distillery in the first
place, then when you come to sell your spirits abroad you can
expect even more! The trick is to be thorough and highly organised.
That way it shouldn't be too much ofa chore, and the rewards will
surely be worth the effort.

Tax on spirits and Brexit implications


At the time of writing, the whole issue of exporting is in a state of
flux as the UK prepares to leave the EU. At present, as Open To
Export explains, “The UK’s trading arrangements with countries
around the world are shaped by the agreements put in place by
the EU. The trading bloc has arranged the UK’s trade agreements
with partners around the world and of course the UK’s trading
arrangements with much of Europe have been governed by the
rules of being part of the EU.
“When the UK has negotiated its exit from the EU, it will be in
a position where it needs to start negotiating deals with partners
around the world. This potentially includes the EU, depending on
whether the two parties successfully agree a trade agreement as
part of the negotiations for leaving.
“The Free-Trade Agreements (FTAs) that the UK goes on to
negotiate with new partners could become a major factor for UK
businesses when deciding where they could export their goods
and services to.”

123
The Microdistillers’ Handbook

Without an FTA in place, World Trade Organisation rules apply,


with a principle of non-discrimination at their heart. This means
that no single country can be offered more or less preferential
trading terms than any other — tariffs on any one type of goods
must be the same for all trading partners.
According to Open to Export, “The reality remains that leaving
the EU will make selling goods and services overseas a harder
and more time-consuming task with The Institute of Export and
International Trade reporting that the number of shipments into
and out of the UK to be classed as exports/imports is to rise from
90 million to 300 million per annum. Simply put, while at the
moment you can send products to France or Germany without
much hassle, once the UK has left the EU there will potentially be
a new set of paperwork to complete and obligations to meet in
order to continue to sell into these EU markets — and that’s before
talking about exporting outside of Europe.”
One arena in which Brexit may bring good news to the spirits’
world is what used to be known as ‘duty free’ and since 1999
has been labelled ‘travel retail.’ The change abolished duty free
shopping within the EU, but when the UK leaves the European
Union on 29 March 2019, it effectively becomes a ‘third country’.
Under existing EU law, European travellers can make purchases on
a duty-free basis if they travel to a ‘third country’ —i.e. one outside
of its 28 member-states. The European Trade Retail Consortium
is now seeking confirmation of the return of duty free sales for
travellers between the UK and the EU post-Brexit, and it has the
strong support of spirits producers who see new opportunities on
the horizon, particularly for high-end products.

124
Appendices

Appendix | 126
Appendix II 132
Appendix III 140
Appendix IV 144
Directory of Services and suppliers 147
Index 165

125
The Microdistillers’ Handbook

Appendix HMRC Notice 39


|

Notice 39: Spirits production in the United Kingdom


It is your responsibility to exercise control over all aspects of
your spirit production including the physical security of your
premises, plant, vessels etc; the security of spirits produced;
accounting for the spirits produced; rendering returns on time; the
examination oflosses and identifying their cause; the investigation
of any irregularity at your premises; and the implementation and
monitoring of reasonable and effective measures to prevent any
loss of dutiable spirits. You should make sure your production
records take these aspects into account. You may be penalised if
you fail to comply with the law.

Approvals and licences


Before you start to produce spirits you must obtain a
distiller’s licence and apply for approval of the plant and process
you intend to use. To apply for a licence complete an application
form and send it to:

HM Revenue & Customs


National Registration Unit
Portcullis House
21 India St
Glasgow, G2 4PZ.
Tel 0141 555 3489/3586
Fax 0141 555 3506

You should make the application in the name of the person


manufacturing the spirits. If you, as manufacturer, are not also
the owner of the premises you may obtain a licence in joint names.
If you intend to produce spirits at more than one set of premises
you must get a licence for each.
The production of spirits by a person who is not licensed is an
offence for which there is a penalty. For information on penalties,
go to http://www.hmrc.gov.uk/about/new-penalties/faqs.htm.
HMRC may refuse to issue a licence or revoke an existing licence
where the largest still to be used has a capacity below hectolitres,
18

or when you cease to manufacture spirits.


To apply for approval of plant and process write to the National
Registration Unit providing the following details:

126
Appendix |

e the location of the proposed distillery


a full description of the manufacturing process
e
the number and description of the vessels used in
the manufacturing process and use of all plant, and a plan
of the premises.

Itis advisable not to acquire land or premises or begin any building


operations until HMRC approves your plans. Approval may include
conditions which will from time to timeandmaybeadded
to or varied. Significant changes to plant (eg the addition or removal
of production vessels) must be notified in writing to the National
Registration Unit.
As a producer of spirits (distiller) your premises will be a tax
warehouse. Under EU legislation, this is a place where exciseable
goods can be produced, processed, held, received and dispatched
under duty-suspension arrangements. This does not permit you to
receive or store duty unpaid alcohol at your distillery. Spirits may
only be received and stored in an excise or distiller’s warehouse.

Records and Accounts


The following requirements have the force of law under
regulation 6 of the Revenue Traders (Account & Records)
Regulations 1992.
You must keep records of all your spirit production. This
includes information on processes and operations such as
fermentations; distillations, including the start and finish
of each distillation period and any process or stage of the
process in the manufacture of spirits; and deliveries to
the warehouse.
Your normal business records should be enough, but HMRC
may ask you to modify them if needed. They do not have to be
kept in any particular format, but they must be accurate and up-
to-date, completed in ink or other permanently legible material,
readily accessible to HMRC and kept for at least six years from the
date of the last entry. You must not remove any pages from your
records, or obliterate any entry without HMRC’s prior agreement.
You can keep computerised records, but you must inform HMRC
in advance. Your system must be capable of producing readable
print-outs whenever requested. HMRC will advise you if you need
to make any changes to your system.
You must also keep all records and documents relating

127
The Microdistillers’ Handbook

to stock; handling; purchases; sales; imports and exports.


HMRC may also wish to look at profit and loss and
trading statements; management accounts and reports;
balance sheets; internal and external auditor's reports and
any other business record. Any incidents which affect
operations, for example a breakdown of plant, must also be
recorded accurately.

Security and construction of premises and plant


You are responsible for the security of the spirit until the duty is
paid. HMRC will check your security systems, and you must pay
duty on any losses you cannot explain. HMRC recommends the
following security measures and checks.
Distillery: perimeter and building security which deters
casual entry and shows signs of forced entry; regular
security reviews.
Stillroom and warehouse: restricted access and regular checks
of vessels and plant; frequent management checks to ensure any
lapses in security are put right.
Vessels and plant: measures to ensure that all vessel openings
are locked or sealed and that signs of tampering or pilferage do
not go unnoticed; technology that controls access to all areas and
vessels on the site.
HMRC also expects all plant to be accessible, readily identifiable
and with the exception of working stills, capable of being opened as
required for inspection; and that all wash backs, feints receivers and
spirit receivers should be gauged and calibrated, with calibration
tables readily available.

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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of March, June, September, and December. You will need to


complete a separate return for each class of spirits you produce.
Each distillery has a unique five-digit identifying number. If you
manufacture more than one class of spirits you will be allocated a
unique number for each class. You may be liable to a penalty if your
return is inaccurate and, as a result, you do not pay enough duty
or if you do not notify HMRC that a duty assessment is too low. If
you know you have made a mistake on your return, you must notify
them as soon as possible: they may be able to reduce the penalty. If
you deliberately make a false duty return, you may face prosecution
for the offence and incur a heavy penalty.
When you manufacture spirits you may use only the processes
for which you have received approval, and comply with any
conditions HMRC has specified. If you wish to change an existing
process or use a new process contact the Excise Helpline, by calling
0300 200 3700.
Duty-unpaid samples of wort, wash, feints and spirits may be
taken for the purposes of quality control, strength testing, scientific
research, reference, and other production-related analysis.
However, you must note the samples taken in your business
records, keep the quantity to the minimum necessary, label the
samples as ‘duty-unpaid sample — not for sale,’ destroy samples no
longer required and keep records of their use and disposal.

Measuring wort, wash and gravity


You must measure the quantity and gravity of wort and wash
collected using recognised industry methods and equipment,
in accordance with the manufacturer’s protocol, and keep
accurate records.
Instruments for measuring alcoholic strength, including
automatic densimeters, must comply with regulation 18 of the
Spirits Regulations 1991 (as amended). The density must be directly
measured as density in air, not density in vacuum converted to
density in air, and the temperature of the liquid must be 20°C -
the measurement cannot be taken at a different temperature and
converted to the equivalent density at 20°C. All of the approved
densimeters have been five decimal place machines, and when
used according to the instructions have proved to be accurate
and precise enough for HMRC. Some machines can convert
the density of a liquid to the alcoholic strength from an internal
look-up table. Such machines must use the Official HMRC

129
The Microdistillers’ Handbook

Laboratory Alcohol Tables to convert the density in air value to an


alcoholic strength.

Low wines, feints and spirits


You may remove any fusel oil which has separated from the feints
in the feints receiver, or collected in oil traps, but you must measure
the quantity and strength of the fusel oil before you dispose of it and
record the details in your records. Duty is not charged on fusel oil
which is below 8.7 per cent ABV, but no spirits or feints should be
mixed with the oil. Ifit contains more than 8.7 per cent alcohol by
volume, it must be ‘washed’ so that the ABV is reduced to 8.7 per
cent or below before it is removed from the distillery. Ifthe strength
of any fusel oil is greater than 8.7 per cent, the whole product is
liable to duty at the spirits rate.
Normally you will carry feints forward from one manufacturing
period to another. If you have feints which you no longer wish to
use in the manufacture of spirits, these should be isolated and
an account taken of them. They should then be warehoused or
destroyed. Your records must show what you have done with the
feints. If you destroy or dispose of feints you will need to alter
your Whisky Export Refund Scheme claim. You may re-distil low
wines and feints at any time. You should ensure that the details of
operations to re-distil low wines, feints and spirits are recorded in
your business records.
Accounting for and warehousing of spirits
e You must keep a record of the spirits you have produced.
The record must include the following details:
e the date and time
e the receiver or other vessel
e the dip or gauge reading
e the temperature and hydrometer readings, and
e the quantity of spirits, adjusted to a temperature of
20°C, with details of bulk volume, strength, and
e litres of alcohol produced.

The spirits should be sent to an approved warehouse immediately


after you have entered the details of the spirits account in your
business records. If your spirit receiver is also approved as a
warehouse vat, they will consider the spirits to be warehoused as
soon as the account has been taken and declared in your records.
You can find further information about distiller’s warehouses in

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
The Microdistillers’ Handbook

Appendix Il: HMRC Notice 196


Notice 196: Excise goods — authorisation of
warehousekeepers and approval of premises
Approvals, authorisations and registrations
Only persons who can demonstrate that they are fit and proper
to carry out an excise business will be authorised or registered
as excise warehousekeepers. Failure to apply for authorisation or
approval at the correct time can attract a financial penalty.
HMRC will visit the authorised excise warehouse-
keepers and approved premises of excise goods in duty-suspension
to carry out checks on production, operations and warehousing.
If you do not provide safe access, HMRC will restrict or withdraw
your authorisation.
The warehousekeeper must display prominently the warning
poster Notice 50 Duty-free warehouse warning at each entrance
and exit to the site. Notice 50 explains that excise goods in the
warehouse may be duty-suspended and that improperly removing
them may incur severe penalties including imprisonment.
HMRC will normally arrange appointments to visit but may also
make unannouncedvisits. You must permit HMRC officers access
to any area of the warehouse during operating hours or at any time
when activity is taking place at the warehouse.

Applying for authorisation


To apply for authorised excise warehousekeeper status, complete
Form EX61 Excise Warehousekeeper- Application for Registration,
which is available from the HMRC website. Ifyou are a partnership
you must also complete form EXCISE 102.
The application form must be completed and signed by the sole
proprietor, one of the partners if the business, or a director or the
company secretary or an authorised signatory. Completed forms
should be returned to the National Registration Unit (NRU).
You must apply at least 45 working days before the date on which
you wish your authorisation to begin to allow HMRC time to carry
out the necessary verification and pre-approval checks, which
will include a visit. Your application will be vetted and is subject
to background checks. Should these checks provide insufficient
assurance that the business is suitable for authorisation, further
information may be requested. Until this information is received,

132
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your application will be put on hold.


During the visit HMRC will examine all the business's activities
and may enquire about its suppliers, customers, business plans,
accounting systems, premises, financial viability and so on. Only
when it is satisfied the business is a genuine enterprise which is
commercially viable, with a genuine need for authorisation and
that all key persons are fit and proper to carry on such a business
will it process the application.
Reasons for refusing an application may include
circumstances where:
e The legal entity (this includes the directors and key
employees) has been involved in revenue non-compliance
or fraud.
e The application is incomplete or inaccurate.
e You (the directors in the case of a limited company) have
unspent convictions.
e There are proven links between the legal entity
orkey employees with other known non-compliant or
fraudulent businesses.
e The business is not commercially viable.
e You have not been able to demonstrate the business
is genuine.
You have outstanding HMRC debts
e The legal entity has been involved in significant
revenue non-compliance.
e You are unable to provide adequate financial security.
You do not have a satisfactory accounting system.
e If HMRC is not satisfied with the information provided to
us, it may refuse to authorise you. If you fail to provide the
information requested, it will place your application on hold
until it is received. It will notify you of the reason or reasons
for refusal.

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.

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The Microdistillers’ Handbook

e The duty status of the goods, and evidence of any


duties paid.
e The name, address and, if appropriate, the VAT
Registration Number of the owner, and, if applicable, the
duty representative.
e Whether the goods have been subject to a supply in
warehouse, and
e Ameans of identifying all goods to their stock number or
vice versa.

If you wish to use computers for stock control and/or accounting


purposes you should include this request in your application
for approval, providing full details of the system you intend to
adopt. The standard of records stored on your computer must be
equivalent to that required if you were to use manual records.
When considering granting approval to use your
specified software package HMRC requires:
e
Right of access to your computer systems and to
data and documentation including financial and
management systems.
The facility to download data for checks and audit work
off-site.
e
Any necessary assistance in carrying out audits of
your systems.
e
Adequate back-up and disaster recovery systems.
e A terminal for official use capable only of printing, reading
files, and displaying information on the VDU.
e
Aunique password to allow officers access to files on a read-
only basis.

Stock marking and control


You must mark all excise goods so that you can identify them in
your stock accounts. Excise goods must have clear and tamper-
proof markings at all times from arrival at to removal from duty-
suspension. You may use any system which meets this requirement
(for example, bar coding), providing that you can establish an
audit trail.
Your stock account must show:
acommercial description of the product
e the quantity received in litres of alcohol
e the alcoholic strength of the product

134
Appendix II

e the quantity received in cases, casks and/or polydrums


aunique identifying reference number
e the date received
e the owner of the goods.

You should keep all excise goods in clearly identified locations


so that you can readily trace them to the stock account. You
must note the appropriate stock account whenever you
move excise goods to a new location in the warehouse. You must
check the accuracy of your stock by undertaking a satisfactory
inventory-checking system as agreed with HMRC and by
complete stocktaking at reasonable intervals. You must take stock
of all excise goods in the excise warehouse monthly in the case of
bulk goods in vats or in storage tanks or annually in the case of all
other excise goods. HMRC may ask you to produce all stocktaking
records and working papers and carry out a stocktake if there is
reasonable cause.
As authorised warehousekeeper, you are responsible for control
of the goods in your approved sites. You must take all necessary
steps to control and safeguard your stocks and investigate and
examine critically all losses and deficiencies.
You must record all the losses and the results of your investigations
into them, including any management decisions taken, take
prompt remedial action, report losses or deficiencies to HMRC
and note the loss in the stock account.
Failure to report notifiable losses immediately is a serious breach
of your conditions of approval, and could lead to its revocation.
HMRC will charge duty on losses and deficiencies unless you can
show they are due to natural causes or accident. Your records must
contain a clear audit trail to justify any adjustments of stock records
following the discovery of any errors. If at any time you discover a
discrepancy in your stock you must immediately contact the Excise
and Customs Helpline on 0300 200 3700.

General storage and distribution warehouses


To apply for General Storage and Distribution Warehouse
(‘bonded warehouse’) approval, use form EX68. To gain
approval you should have a minimum potential duty liability
of 500,000 on the average monthly stockholding of duty-
suspended goods, or a duty liability of at least 2,000,000 on an
annual throughput.

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Trade facility warehouses


A trade facility warehouse is approved for a specific purpose
that has to be completed within duty suspension; for
example, a bottling operation. Approval will stipulate the
period that duty-suspended goods may be stored on the
premises before and after the approved activity takes place.
Once the purpose of the trade facilitation has been com-
pleted, the goods must either be duty-paid, removed to a warehouse
approved to store such goods or exported. Complete form EX69 to
apply.

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

arrangement between you and the guarantor.

Potential duy on month-end stock holding Level of Security

<100,000 Nil

>100,000 but <400,000 100,000

25 per cent of
>400,000 but <41m
potential duty

>1m but <25m 250,000

1 per cent of
>25m but <100m
potential dury

>100m 1m

136
Appendix II

Your liability is not restricted to the size of the guarantee.


HMEC can assess the liability for outstanding duty arising from
any chargeable loss in the warehouse which may be significantly
greater than the size of the guarantee.
For general storage and distribution warehouses HMRC
will base the level of security on the potential duty due on
average end-of-month stock calculated over a 12-month
period, allowing for any seasonal variations. For trade facility
warehouses it bases its calculation on the proposed or current
throughput levels.
The minimum level of security for new general storage and
distribution warehouses is 250,000.
HMRC will offer a reduction of the guarantee levels for
established traders if it has made no claim against the security
and no significant irregularities have been identified.
Where the principal qualifies for a reduction in the level of
security and the newsecurity required would be less than 100,000,
no security is required.
As an authorised warehousekeeper you must inform the FSC if
your trading pattern changes, as it could result in an increased or
reduced level of guarantee.
In the following circumstances its may allow reductions for
premises security as follows:

The level of
If the principal has And HMRC has security is
reduced

Made no claim against the


Provided security for the two security and no significant
By 50 per cent
previous consecutive years. irregularities have been
identified.

Made no claim against the


Provided security for the
security and no significant No guarantee is
previous four consecutive
irregularities have been required.
years. identified.

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The Microdistillers’ Handbook

Approval to carry out operations in warehouse


The only allowable operations in distillers’ warehouses are:
bottling of spirits produced at the associated distillery
e
reducing spirits with water
e
filling casks or drums with spirits
removing spirits in bulk by tanker or authorised pipeline
e
drawing off spirits from unsound casks or pumping direct
from casks to tanker
emptying casks into vats for removal in bulk
e
transferring spirits from cask to cask
e
Ifyou wish to carry out an operation that is not listed above
or are in any doubt that your action is allowable, contact
the Helpline on 0300 200 3700, giving full details of the
proposed operation
When carrying out any operation on duty-suspended goods,
you must take accurate records immediately before and
after each operation, keep an accurate record of any cleaning
agent used, and advise HMRC about any gains and losses from
any operation in the warehouse.

For each bottling operation you must:


e take account prior to bottling
take and record bottle measurements of strength and
liquid content
e
carry out filling adjustments to make sure that
the intended strength and quantity are achieved
in practice
e allocate an identifying stock number to filled cases
e
investigate any losses outside established loss patterns
investigate all gains during the operation
complete a declaration of outturn —if more than one size of
bottle is to be filled, record the number of cases of each size
e secure any remnant
complete your stock accounts
e
keep acopy of the bottle label used
e
keep arecord if you use duty-free spirit for rinsing.

Determining strength and volume


In order that the strength and volume of product may be
determined for duty and stock control purposes, you must
have a system in

138
Appendix II

place that meets the requirements of Section 2 of ALDA,


Regulation 31 of the Excise Warehousing (etc.) Regulations
1988 (EWER), and Regulations 18 and 19 of the Spirits
Regulations 1991.
You may use any recognised method to determine alcoholic
strength provided that the results are accurate and the method
is used consistently. The method used to settle any dispute
will depend on the type of product, for example, for spirit
the method used will be the hydrometer referred to in the
Spirit Regulations.
You must record alcoholic strength and volume as accurately
as possible, ensuring that you adjust for any obscuration caused
by the presence of sweetening, colouring or other ingredients.
During an operation to bottle duty-suspended product in the
warehouse, you must give prior notice of the intended strength
and quantity per case (for example 12 x 40 per cent x 70cl =
3.36 litres of alcohol). You should take and record sufficient
measurements during each operation of the liquid content and
strength. You must keep a sample of each bottle label used and
any other document which specifies the quantity and strength
of the goods. You must be able to demonstrate that when
measuring strength and volume you make a continuing genuine
effort to achieve the strength and volume indicated on bottles or
other containers.
HMRC will normally accept the labelled strength and volume
as the basis of duty calculations if you can show that you are not
aiming to achieve a higher strength than that shown on the label
and that, ifthe actual strength exceeds the label strength, you take
corrective action immediately. It may ask you to pay additional duty
if it finds that you have packaged goods at strengths or volumes
exceeding those on the labels.

Excise warehouse returns (form W1)


All warehousekeepers with the exception of certain trade facility
warehouses are required to submit aW1 stock return which shows
stock movements and stock on hand at the end of the return period,
normally on a monthly basis. Returns must be received within
14 days of the end of each return period. If you fail to submit a
W1 return on time this may result in a financial penalty. If you
persistently fail to submit returns it could result in the withdrawal of
your authorisation.

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Appendix Ill: Notice 197


Notice 197: Excise Goods: receipt into and removal
from an excise warehouse of excise goods

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

or whiskey must complete annual return Form WIA. The


warehousekeeper, must provide details of the stock in warehouse
at 31 December each year and information of movements made
during the preceding year. HMRC will issue this form together with
completion instructions.

Removal to home use by duty payment


You can only remove excise goods from your warehouse on
payment of duty and within the conditions set out in your approval.
You must take all necessary steps to pay the duty accurately and
by the due dates. Failure to do so may result in prosecution or a
financial penalty and could lead to restriction or withdrawal of your
warehouse-keeper authorisation.
The systems, procedures and records to be kept and prepared
when removing excise goods to home use will have been agreed at
the time your approval and authorisation was granted. You must
follow these procedures without exception. Before you remove
goods to home use you must use the appropriate payment warrant
documentation. This may be completed manually or online using
either an online warrant or HMRC’s XML service.
When payment is made by cash or equivalent, use warrants
W5 for the removal of alcohol goods. When you are approved to
defer payment of duty and wish to account for the duty using the
deferment process, use warrant W5D. Paper warrants should be
sent by post to the National Warrant Processing Unit (NWPU). Each
watrant must contain a Consecutive Reference Number (CRN).
HMEC strongly advises that you do not remove any goods until you
are certain your warrant has been accepted. Copies of all forms and
the notes to assist completion are available on the HMRC website.
HMEC also has a facility for the submission of remittance
warrants and duty deferment warrants online, ATWD, available on
the HMRC website. The online declaration service pre-populates
standing data, including warehouse details, making it easier to
complete the form and automatically calculates the amount of
duty due as well as sub-totals, the amount of VAT, and the grand
total. It also provides an immediate on-screen acknowledgement
of receipt, confirms the approval of deferment warrants within a
few minutes rather than having to wait for HMRC to reply by post,
and provides a 24-hour service. To use the ATWD online service you
will need to register and enrol for the service via the Government
Gateway website.

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The XML Direct Submission Service allows you to send data


directly from your computer to HMRC. This allows you to submit
large numbers of warrants directly from your duty management
systems via XML, rather than re-keying the warrants on to an online
screen. The XML format for exchanging information between
computer systems is a stable and widely adopted technology but
does not allow HMRC to access or interrogate your computer
system, only to receive information, confirm receipt and pass back
messages about invalid entries or format errors.
If you are not approved to use deferment arrangements, before
removing goods from your warehouse you must complete cash
remittance advice W5 and submit it to the NWPU together with
your remittance. Remittances may take the form of cash; a banker's
draft; a cheque covered by banker's standard guarantee (form C&E
307); a cheque individually guaranteed by the bank, endorsed
‘guaranteed’ or ‘good’, countersigned by the bank manager or
other responsible official; BACS (for sums less than 20,000,000)
or CHAPS. If you wish to pay by electronic transfer then you should
contact the NWPU.

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

Denaturing (contaminating) and destroying alcohol


If any distillate held in duty suspension is surplus after
operations, of less value than the duty liable on it, or in an
unmarketable condition, you may apply to HMRC for permission
to denature (ie contaminate to make unpotable, usually with
methanol) or destroy it without having to pay the duty. Ifsomeone
else carries out the denaturing or destruction on your behalf, you
remain responsible for ensuring that you comply with all HMRC
procedures. You must give at least two working days’ notice if you
wish to carry out the procedure on your premises or five working
days’ notice if the procedure is to be conducted elsewhere.
You must inform HMRC why you wish to denature or destroy
the goods, the description and quantity of the goods concerned,
the potential amount of duty involved, the date, time and place of
the proposed procedure, the proposed method and the purpose to
which denatured product will be put. Notifications should be sent
by email to [email protected] or by fax to 0141 555 3545.
If HMRC decides that your proposed method of denaturing is not
satisfactory it will tell you in writing. You are required to provide
evidence that the goods have been denatured or destroyed in
accordance with the notice given. Any discrepancies will be treated
as a loss in warehouse.
Duty-paid goods may also be denatured or destroyed.
To claim duty drawback, follow the directions set out in
Notice 207.

Calculation of excise duty


Unless HMRC has permitted the use of an alternative method
that does not disadvantage the revenue, you must work out each
constituent stage of the calculation process to a minimum of
four decimal places. But to complete the remittance advice W5 or
W5SD, truncate the quantity of alcohol established at the end of the
calculation process to two decimal places.
Please see the following examples.
(a) 800 cases of vodka, each containing 6x70cl @ 37.5% ABV6 x 0.7
x 37.5 per cent = 1.575LPA x 800
= 1,260 x duty @ 28.74= 36,212.40
(b) 79 cases of whisky, each containing 12 x 70 cl x 43% ABV 12
x 0.7 x 43 per cent = 3.612LPA x 79 = 285.348LPA total x 28.74 =
8,200.90.
(c) 1,209 cases of gin, each containing 12 x 1 litre x 40% ABV 12x
1x40 per cent = 4.8 LPA x 1209 = 5803.2 LPAx 28.74 = 166,783.96

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The Microdistillers’ Handbook

Appendix IV: Reviews and Appeals


Reviews and appeals, stautes, HMRC contacts
Review and appeal procedures
When HMRC makes a decision you can appeal against, it will
inform you and offer a review. It will explain the decision and tell
you what you need to do if you disagree. Examples include the
amount of an assessment, the issue of a civil penalty or a decision
specifically connected to the relevant duty. You will usually have
three options. Within 30 days you can send new information or
arguments to the officer you have been dealing with, have your
case reviewed by a different officer or have your case heard by
an independent tribunal. A review will be handled bya different
officer from the one who made the decision. If you prefer to have
an independent tribunal hear your case, you must write directly
to the Tribunals Service.
If you want HMRC to review a decision, you must write to the
officer who issued the decision letter within 30 days of the date of the
letter. HMRC will complete its review within 45 days unless it agrees
another time-limit with you. Ifyou have asked for areview youcannot
ask the tribunal to hear your case until the 45 days (or the time-
limit you agreed) has expired, or HMRC told you the outcome ofits
review. Ifyou are not satisfied with the review’s conclusion, you have
30 days to ask the tribunal to hear your case.
If you do not want a review you may appeal to the independent
tribunal. You need to send your appeal to the Tribunals Service
within 30 days of the date on the decision letter.
You can find further information about reviews and appeals in
factsheet HMRC1 HMRC Decisions — “What to do if you disagree’.
You can download it from HMRC’s website, or call the Revenue
& Customs Orderline on 0300 200 3610. You can also find more
information about how to appeal on the Tribunals Service website
or by phoning 0845 223 8080.

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

e The Denatured Alcohol Regulations 2005 (SI 2005/1524)


e The Excise Duties (Deferred Payment) Regulations 1992 (SI
1992/3152)
e The Excise Goods (Drawback) Regulations 1995 (SI
1995/1046)
e The Excise Goods (Holding, Movement and Duty Point)
Regulations 2010 (SI 2010/593)
e The Excise Warehousing (etc.) Regulations 1988 (SI
1988/809)
e The Revenue Traders (Accounts and Records) Regulations
1992 (SI 1992/3150)
e
The Spirits (Rectifying, Compounding and Drawback)
Regulations 1988 (SI 1988/1760)
e The Spirits Regulations 1991 (SI 1991/2564)
e
The Warehousekeepers and Owners of Warehoused Goods
Regulations 1999 (SI 1999/1278)
e
European Council Directive 2008/118/EC OJ: L9, 14.01.09.

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:

HMRC National Registration Unit (NRU)


Portcullis House, 21 India Street,
Glasgow, G2 4PZ,
Phone: 0141 555 3601
Fax: 0141 555 3506

HMRC National Warrant Processing Unit (NWPU)/National


Warehouse Return Centre (NWRC)
2nd Floor Portcullis House,
13-21 India Street,
Glasgow, G2 4PZ
Phone: 0141 555 3665
Fax: 0141 555 3555

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The Microdistillers’ Handbook

HMRC National Verification Centre (NVC)


Portcullis House, 21 India Street,
Glasgow, G2 4PZ
Phone: 0141 555 3616

HMRC Financial Securities Centre (FSC)


Portcullis House, 21 India Street,
Glasgow, G2 4PZ,
Phone: 0141 555 3505
Fax: 0141 555 3506

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]

ASSOCIATIONS, Broxburn Bottlers


CLUBS & SOCIETIES East Mains Industrial Estate,
Broxburn, West Lothian,
International Centre for Scotland, EH52 5NN
Brewing and Distilling +44 (0) 1506 854 373
Heriot-Watt University, Riccarton, www.broxburnbottlers.co.uk
Edinburgh, Midlothian,
Scotland, EH14 4AS Encirc Group
+44 (0) 131 451 3183 Ash Road, Elton, Cheshire,
www.icod.hw.ac.uk England, CH2 4LF
+44 (0) 1928 725 300
Scotch Whisky Association ww.encirc360.com
Quartermile Two, 2 Lister Square,
Edinburgh, Midlothian, H & A Prestige Bottling Ltd
Scotland, EH3 9YGL Ackhurst Business Park,
+44 (0) 131 222 9200 Ackhurst Road, Chorley,
www.scotch-whisky.org.uk Lancashire, England, PR7 1NH
+44 (0) 1257 479 100
BOTTLES & BOTTLING www.hacontractbottling.co.uk

Ardagh Group Neville and More


Headlands Lane, Unit 15, Oakhurst Business Park,
Knottingley, West Yorkshire, Wilberforce Way, Horsham,
England, WF11 OHP West Sussex, England, RH13 9RT
+44 (0) 1977 674 111 +44 (0) 1403 732 290
www.ardaghgroup.com www.nevilleandmore.com

Bottle Company (South) Ltd Rawlings & Son


Unit 3, Pixash Business Centre, Unit Crown Road, Warmley,
3

Pixash lane, Keynsham, Bristol, England, BS30 8JJ


England, BS31 1TP +44 (0) 1179 604 141
+44 (0) 117 986 9667 www.rawlingsbristol.co.uk
www.bottlecompanysouth.co.uk

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The Microdistillers’ Handbook

Vetreria Etrusca Ltd. Krones UK Ltd.


16 Beckside, Plumpton, Penrith, Westregen House, Great Bank
Cumbria, England, CA11 9PD Road, Wingates Industrial Park,
+44 (0) 1768 894 044 Bolton, Lancashire,
www.vetreriaetrusca. it England, BL5 3XB
+44 (0) 1942 845 000
Wade Ceramics Ltd www.krones.co.uk
Bessemer Drive, Stoke On Trent,
Staffordshire, England, ST1 5GR CASKS & COOPERAGE
+44 (0) 845 481 0206
www.wade.co.uk Camlachie Cooperage Ltd
Unit R, Clyde Workshops,
BOTTLING MACHINES Fullarton Road, Glasgow,
& SUNDRIES Aberdeenshire,
Scotland, G32 8YL
Advanced Bottling +44 (0) 141 641 9284
UK Ltd (ABUK) www.camlachiecooperage.com
Brealey Works, Station Street,
Misterton, Nottinghamshire, CypherCo Ltd
England, DN10 4DD Unit 19 Rural Enterprise Centre,
+44 (0) 1427 890 099 Vincent Carey Road,
www.abuk.co.uk Rotherwas Industrial Estate,
Hereford, Herefordshire,
Carlson Filtration England, HR2 6FE
The Butts Mill, Barnoldswick, +44 (0) 1432 343 340
Lancashire, England, BB18 5HP www.cypherco.com
+44 (0) 1282 811 000
www.carlson.co.uk Joseph Brown Vats of Dufftown Ltd
33 Balvenie Street, Dufftown,
Enterprise Tondelli Scotland, AB55 4AS
Unit 7 College Farm Buildings, +44 (0) 1340 820 265
Barton Road, Pulloxhill, www.woodenvats.com
Bedfordshire, England, MK45 5HP
+44 (0) 1525 718 288 Kammac ple
www.enterprisetondelli.com Gladden Place, West Gillibrands
Industrial Estate, Skelmersdale,
Foodmek Lancashire, England, WN8 9SY
17 Shanwell Road South, Tayport, +44 (0) 1695 727 272
Fife, Scotland, DD6 9EA www.kammac.com
+44 (0) 1382 553 577
www.foodmek.co.uk Mckenzie Pentland
Old Pentland Saw Mill,
Intercaps Filling Systems Ltd Edinburgh, Midlothian,
264 Banbury Road, Oxford, Scotland, EH20 9NU
England, OX2 7DY +44 (0) 131 440 0301
+44 (0) 1865 520 083 www.mckenzieskiphire.com
www. icfillingsysterns.com
Roe Head Mills
Klockner Pentaplast Group Far Common Road, Mirfield,
PO Box 11 65, Montabaur, West Yorkshire, England,
Germany, WF11 OBL WF14 O0ODG
+49 2602 9150 +44 (0) 1924 496 671
www.kpfilms.com www.eurobung.co.uk

148
Directory of services and suppliers

Rotech (Swindon) Ltd Viscose Closures Ltd


10-11 Blackworth Industrial Park, Ferryboat Cloase, Swansea
Highworth, Swindon, Wiltshire, Enterprise Park, Swansea, Wales,
England, SN6 7NA SA6 8ON
+44 (0) 1793 764 700 +44 (0) 1792 796393
www.rotechkeg.co.uk www.viscose.co.uk

Speyside Cooperage COMPUTER SERVICES


Dufftown Road, Craigellachie,
Aberlour, Banffshire, Distillery Records &
Scotland, AB38 9RS Management System (DRAMS)
+44 (0) 1340 871 108 40 Carden Place, Aberdeen,
www.speysidecooperage.co.uk Scotland, AB10 1UP
+44 (0) 1224 627 600
CLOSURES & CORK www.drams-software.com

C Olley & Sons Ltd Epicor


36 Southgate Avenue, Mildenhall, No. 1 The Arena, Downshire Way,
Suffolk, England, IP28 7AT Bracknell, England, RG12 1PU
+44 (0) 1638 712 076 +44 (0) 1344 468 468
www.olleycork.co.uk www.epicor.com
Erben Packaging & Machinery Hewlett-Packard
Lady Lane, Hadleigh, lpswich, Amen Corner, Cain Road,
Suffolk, England, IP7 6AS Bracknell, Berkshire,
+44 (0) 1473 823 011 England, RG12 1HN
www.erben.co.uk +44 (0) 3452 704 567
www.hp.com
Herti UK Ltd
Astra House, The Common, Merlin Business Software
Cranleigh, Surrey, England, GU6 8RZ Chatsworth House, Millennium
+44 (0) 1483 266 617 Way, Chesterfield, Derbyshire,
www.herti.co.uk England, S41 8ND
+44 (0) 1246 457 150
Macbey Industrial Ltd www.chatsworth.co.uk
Tandem Industrial Estate,
Waterloo, Huddersfield, Premier Systems Ltd - Brewman
West Yorkshire, England, HD5 OBL Unit 2 Azera, Capstan Road
+44 (0) 1484 533 216 Woolston
www.metal-closures.co.uk Southampton SO19 9UR
+44 (0) 2380 811 100
Rankin Brothers & Sons www.premiersystems.com
3c Drakes Farm, Drakes Drive,
Long Crendon, Buckinghamshire, The Trapeze Group
England, HP18 9BA The Mill, Staverton, Trowbridge,
+44 (0) 1844 203 100 Wiltshire, England, BA14 6PH
www.rankincork.co.uk +44 (0) 808 281 1039
www.trapezegroup.co.uk
United Closures & Plastics Ltd
1 Steuart Road,
Bridge of Allan, Vintner Computer Systems
Stirling, Stirlingshire, 16 Station Road, Chesham,
Scotland, FK9 4JG Buckinghamshire, England,
+44 (0) 1786 833 613 HP5 1DH
www.ucpLtd.com +44 (0) 1494 792 539
www.vintner.co.uk

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DISPENSE SYSTEMS Alfa Laval Ltd


7 Doman Road, Camberley,
Anton Paar Surrey, England, GU15 3DN
13 Harforde Court, John Tate +44 (0) 1276 633 833
Road, Hertford, Hertfordshire, www.alfalaval.co.uk
England, SG13 7NW
+44 (0) 1992 514 730 Bedford Stainless Ltd
www.anton-paar.com 5 FaradayClose, Snape Lane
Industrial Estate, Harworth,
England Worthside Ltd Doncaster, South Yorkshire,
Hope Mills, Hope Place, England, DN11 8RU
Keighley, West Yorkshire, +44 (0) 1302 752 010
England, BD21 5LJ www.bedfordstainless.co.uk
+44 (0) 1535 682 222
www.worthside.co.uk Beverage Process Ltd
3 Stable Courtyard, Westhill,
Eurocave Professional Ledbury, England, HR8 1JF
57 Chiltern Street, London, +44 (0) 1531 631 948
Greater London, www.beverageprocess.com
England, W1U 6ND
+44 (0) 2079 354 679 Blyth + Blyth
www.eurocave.co.uk Third Floor, 169 Elderslie Street,
Glasgow, Glasgow,
Hach Scotland, G3 7JR
Laser House, Ground Floor, Suite +44 (0) 141 566 2000
B, Waterfront Quay, www.blythandblyth.co.uk
Salford Quays, Manchester,
England, M50 3XxW Briggs
+44 (0) 1618 721 487 Richard Sizer, Briggs House,
uk.hach.com Derby Street, Burton-upon-Trent,
Staffordshire, England, DE14 2LH
Russell Finex Ltd +44 (0) 1283 566 661
Russell House, Browells Lane, www.briggsplc.co.uk
Feltham , Middlsex,
England, TW13 7EW Carbonation Techniques Ltd
+44 (0) 2088 182 000 Unit E4, Halesfield 5, Telford,
www.russellfixen.com England, TF7 4QJ
+44 (0) 1952 583 901
ENGINEERING SERVICES www.carbotech.co.uk

Abbott & Co (Newark) Ltd Clark & Sutherland


Newark Boiler works, Unit 3A Westerton Road North,
Newark, Nottinghamshire, Keith, Moray, Scotland, AB55 5FL
England, NG24 2EJ +44 (0) 1542 880 100
+44 (0) 1636 704 208 www.clarkandsutherland.co.uk
www.air-receivers.co.uk
Endresst+Hauser Ltd
ABM Ltd Floats Road, Manchester,
Pitt Street, Widnes, Cheshire, Greater Manchester,
England, WA8 OTG England, M23 9NF
+44 (0) 151 420 2829 +44 (0) 161 286 5000
www.abm.|td.uk www.uk.endress.com

150
Directory of services and suppliers

GEA Process Engineering Ltd Orapi Applied Ltd


Leacroft House, Leacroft Road, 15 Spring Road, Smethwick,
Birchwood, Warrington, Cheshire, West Midlands, England, B66 1PT
England, WA3 6JF +44 (0) 121 525 4000
+44 (0) 1925 812 650 www.orapiapplied.com
www.geaprocess.co.uk
Pall Food and Beverage
Gilbert Gilkes & Gordon Ltd. 5 Harbourgate Business Park,
Canal Head North, Kendal, Southampton Road, Portsmouth,
Cumbria, England, LA9 7BZ Hampshire, England, POé 4BQ
+44 (0) 1539 720 028 +44 (Q) 23 9233 8000
www.gilkes.com www.pall.com
Green Engineering Parker Hannifin Ltd
35 Beaufort Place, Tachbrook Park Drive, Warwick,
Thompsons Lane, Quayside, Warwickshire, England, CV34 6TU
Cambridge, Cambridgeshire, +44 (0) 1926 317 878
England, CB5 8AG www.parker.com
+44 (0) 1223 361 008
www.greeneng.
it Scott Process Technology Ltd.
Ovenstone Works, Ovenstone,
Hanovia Ansthruther, Fife, |

780 Buckingham Avenue, Slough, Scotland, KY10 2RR


Berkshire, England, SL1 4LA +44 (0) 1333 311 394
+44 (0) 1753 515 300 www.scottprotec.com
www.hanovia.com
Standfast Precision Engineering
LH Stainless Ltd. Victoria Street, Craigellachie,
Towiemore, Drummuir, Keith, Banffshire, Scotland, AB38 9SR
Banffshire, Scotland, AB55 5JA +44 (0) 1340 881 371
+44 (0) 1466 792 222 www.standfast-engineering.com
www.I|-h-s.co.uk
Sterling Fluid Systems (UK) Ltd
Logistex ORC Europe House,
2700 Kettering Parkway, Second Avenue, Trafford Park,
Kettering, Northamptonshire, Manchester, England, M17 1EE
England, NN15 6XR +44 (0) 161 928 6371
+44 (0) 1536 480 600 www:sterlingfluid.com
www.logistex.com
Tomlinson Hall & Co Ltd.
Lorien Engineering Solutions Ltd Lagonda Road, Billingham,
Millennium Court, First Avenue, North Yorkshire,
Centrum 100, Burton-on-Trent, England, TS23 4JA
Staffordshire, England, DE14 2WH +44 (0) 1642 379 500
+44 (0) 1283 485 100 www.tomlinson-hall.co.uk
www.lorienengineering.com
Veolia Water Solutions
Niras & Technologies
Sortemosevej 19, Allerod, Aqua House, Kings Court,
Denmark, 3450 Birmingham Business Park,
+44 (0) 20 8569 7979 Birmingham, West Midlands,
www.niras.com England, B37 7YE
+44 (0) 203 567 7400
www.veoliawatertechnologies.co.uk

151
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EQUIPMENT EQUIPMENT SUPPLIERS


Allen Associates (HPE) Ltd Celloglas
Unit 7 Alpha Centre, Unit 12c Exeter Way,
Stirling University innovation Park, Theale Commercial Estate,
Stirling, Scotland, FK9 4NF Reading, Berkshire,
+44 (0) 1786 448777 England, RG7 4AW
www.allenhpe.co.uk +44 (0) 1189 167 3003
www.celloglas.co.uk
Axflow
Orion Park, Northfield Ave, Cockayne Ltd.
Ealing, London, Greater London, 16 Flakefield, College Milton,
England, W13 9SJ East Kilbride, Glasgow,
+44 (0) 20 8579 2111 Scotland, G74 1PF
www.axflow.com/en-gb/gb +44 (0) 1355 587 846
www.cockayne.co.uk
Buhler Ltd.
20 Atlantis Avenue, The Craft Distilling Business
London, Greater London, 12 Northfields Prospect
England, E16 2BF Putney Bridge Road
+44 (0) 2070 556 650 London, SW18 1PE
www.buhlergroup.com +44 (0) 7581201495
www.thecraftdistillingbusiness.com
BW Integrated Systems
1305 Lakeview Dr, Ferrier Pumps
Romeoville, U.S.A., 60446 IL Unit 4 & 5, Barclayhill Place,
+44 (0) 1302 711 056 Protlethen, Aberdeen,
www.bwintegratedsystems.com Aberdeenshire, Scotland, AB12 4PF
+44 (0) 1224 782 022
Eastfield Process Equipment www. ferrieroumps.co.uk
Eastfield Farm, Tickhill,
Doncaster, South Yorkshire, Forsyths
England, DN11 9JD Forsyths, Rothes, Moray,
+44 (0) 1302 751 444 Scotland, AB38 7AD
www.easttieldprocessequipment.co.uk +44 (0) 1340 831 787
www.forsyths.com
Hi-Line Services
56 Britannia Way, Lichtield, Fulton Boiler Works
Staffordshire, England, WS14 9UY (Great Britain) Ltd.
+44 (0) 1543 258 741 5 Fernhurst Road, Fishponds,
www.hilineservices.co.uk Bristol, England, BS5 7FG
+44 (0) 117 972 3322
Johnson Controls Inc. www.fulton.com
5757N. Green Bay Ave., PO Box
591, Milwaukee, U.S.A., WI 53201 IC FILLING SYSTEMS Ltd
+1 414 524 1200 264 Banbury Road,
www.johnsoncontrols.co.uk Oxford, OX2 7DY
+44 (0) 1865 520 083
Seepex UK Ltd. www. icifillingsystems.com
14 Memorial Rd, Yeovil, Somerset,
England, BA22 8RW
+44 (0) 1935 472 376
www.seepex.com

152
Directory of services and suppliers

Karmelle Ltd. Burns Crystal Glass


Unit 17 Queens mill Industrial 11 Langlands Avenue,
Estate, Huddersfield, West Kelvin South Business Park,
Yorkshire, HD1 3RR East Kilbride, Glasgow, Ayrshire,
+44 (0) 1484 533356 Scotland, G75 OYG
www.kamelle.com +44 (0) 1290 550 155
www.burnscrystal.co.uk
Klenzan Ltd
2 Cameron Court, Winwick Quay, Dartington Crystal
Warrington, Cheshire, Torrington, Devon,
England, WA2 8RE England, EX38 7AN
+44 (0) 1925 234 696 +44 (0) 1805 626 262
www.klenzan.co.uk www.dartington.co.uk
Label Apeel Ltd Enval Ltd
Bo House, 17 Pinfold Road, 17-19 Taylor Street, Luton,
Thurmaston, Leicester, England, LU2 OEY
Leicestershire, England, LE4 8AS +44 (0) 845 299 7566
+44 (0) 116 231 4555 www.enval.com
www.labelapeel.co.uk
Forever Crystal
Mettler-Toledo Ltd. 12 Lancaster Rise, Belper,
64 Boston Road, Beaumont Leys, Derbyshire, England, DE56 1HF
Leicester, Leicestershire, +44 (0) 1773 820 287
England, LE4 1AW www.forevercrystal.co.uk
+44 (0) 116 234 5222
www.mt.com Glencairn Crystal
11 Langlands Avenue,
Northern Fabricators Kelvin South Business Park,
1
Chanonry Industrial Estate, East Kilbride, South Lanarkshire,
Elgin, Moray, Scotland, IV30 6ND Scotland, G75 OYG
+44 (0) 1343 546 139 +44 (0) 1355 279 717
www.norfabs.co.uk www.glencairn.co.uk
SICK UK Ltd Langham Glass
Waldkirch House, 39 Hedley Road, Greenway Lane, Fakenham,
St Albans, Hertfordshire, Norfolk, England, NR21 8ET
England, AL1 5BN +44 (0) 1328 863 500
+44 (0) 1727 831 121 www.langhamglass.co.uk
www.sick.co.uk
O-I Alloa
Stevenson Reeves Ltd Glasshouse Loan,
40 Oxgangs Bank, Edinburgh, Alloa, Clackmannshire,
Midlothian, Scotland, EH13 9LH Scotland, FK10 1PD
+44 (0) 131 445 7151 +44 (0) 1259 218 822
www.stevenson-reeves.co.uk WWW.O-/.cCOMm

GLASSWARE Owens-lllinois Inc


P.O. Box 6068, Edinburgh Way,
Allied Glass Containers Harlow, Essex,
69 South Accommodation Road, England, CM20 2 UG
Leeds, Leeds, England, LS10 1NQ +44 (0) 1279 422 222
+44 (0) 1132 451 568 WWW.O-/.cCOmM
www.allied-glass.com

153
The Microdistillers’ Handbook

Pont Packaging AJS Labels


Unit 8, Westpoint Enterprise Park 12 Arndale Rd.,
Trafford Park Lineside Ind.Estate,
Manchester M17 10S Littlehampton, West Sussex,
+44 (0)161 874 1930 England, BN17 7HD
www.ponteurope.com +44 (0) 1903 731 212
www.ajslabels.com
Riedel Crystal
RSN UK Ltd, Lakeside House - Antalis
Trentham Office Village, Baker & McKenzie LLP,
Trentham Lakes South, 100 New Bridge Street, London,
Stoke-on-Trent, England, EC4V 6JA
Staffordshire, England, ST4 8GH +44 (0) 3706 073 136
+44 (0) 1782 646 105 www.antalis.co.uk
www.riedel.com
APi Laminates Ltd
Saverglass Second Avenue,
London, Greater London, Poynton Industrial Estate,
England, WF2 OYN Stockport, Cheshire,
+44 (0) 113 322 1595 England, SK12 1ND
www.saverglass.com +44 (0) 1625 650 500
www.apigroup.com
Schott Glass
Drummond Road, Stafford, CCL Decorative Sleeves
Staffordshire, England, ST16 3EL Rollesby Road, Hardwick
+44 (0) 1785 223 166 Industrial Estate, Kings Lynn,
www.schott.com/uk Norfolk, England, PE30 4LS
+44 (0) 1553 769 319
Urban Bar Ltd www.ccllabel.com
The Glasshouse, Highfields
Business Park, Hertfordshire, Clarifoil
England, SG8 5JT 1,Holme Lane, Spondon, Derby,
+44 (0) 1763 500 131 Derbyshire, England, DE21 7BS
www.urbanbar.com +44 (0) 1332 681 205
www.celanese.com/clarifoil
William Croxson & Son Ltd CS Labels
Alpha Place, Garth Road, Unit D Bay 2, Willenhall Trading
Morden, Surrey, Estate, Midacre Willenhall,
England, SM4 4LZ Willenhall, West Midlands,
+44 (0) 20 8337 2945 England, WV13 2JW
www.croxsons.com +44 (0) 1902 365 840
www.cslabels.co.uk
LABELLING
Darley Ltd
Advanced Labelling Systems Wellington Road, Burton-on-Trent,
Unit B Bandet Way, Thame, Staffordshire, England, DE14 2AD
Oxfordshire, England, OX9 3SJ +44 (0) 1283 564 936
+44 (0) 1844 264 821 www.darleyLtd.co.uk
www.als.eu.com
Denny Bros group
Kempson Way, Bury St Edmunds,
Suffolk, England, IP32 7AR
+44 (0) 1284 701 381
www.dennybros.com

154
Directory of services and suppliers

G. & A. Kirsten Ltd. Mercian Labels


Suite 8 Pelmark House, Unit 2 Plantslane business Park,
11 Amwell End, Ware, Burnswood, Staffordshire,
Hertfordshire, England, SG12 9HP England, WS7 3GN
+44 (0) 1920 487 300 +44 (0) 1543 431 070
www.kirsten-group.com www.mercianlabels.com
Metsa Board
Gavin Watson Printers 7 Frascati Way, Maidenhead,
79-109 Glasgow Road, Glasgow, Berkshire, England, ME4 4YG
Scotland, G72 OLY +44 (0) 845 600 2293
+44 (0) 1698 826 000
www.gavinwatson.co.uk Multi Labels Ltd
Sopwith Way,
Herma Labelling Systems Drayton Feild Industrial Estate,
The Hollands Centre, Daventry, Northamptonshire,
Hollands Road, Haverhill, Suffolk, England, NN11 8PB
England, CB9 8PR +44 (0) 513 381 1480
+44 (0) 1440 763 366 www.multilabels.com
www.herma.co.uk
NSD International
HSM UK Ltd Mayfield Industrial Estate,
Burntwood Business Park, Dalkeith, Midlothian,
Burntwood, Staffordshire, Scotland, EH22 4AF
England, WS7 9GJ +44 (0) 131 654 4654
+44 (0) 1543 272 480 www.nsdinternational.com/en
www.hsm.eu/uk
Oakbank Products Ltd
Labels Plus 6 Fairbairn Road, Livingston,
Unit 22 Botany Business Park, Scotland, EH54 6TS
Whaley Bridge, Derbyshire, +44 (0) 1506 412 937
England, SK23 7DO www.oakbankproducts.com
+44 (0) 1663 736 250
www.labelsplus.co.uk Royston Labels
Unit 18, Orchard Road Industrial
Labelsco Ltd Estate, Royston, Hertfordshire,
Moat Way, Barwell, Leicestershire, England, SG8 5HD
England, LE9 8EY +44 (0) 1763 212 020
+44 (0) 1455 852 400 www.roystonlabels.co.uk
www.labelsco.co.uk
Smith & McLaurin Ltd
Logopak International Ltd Cartside Mill, Kilbarchan,
Enterprise House, Renfrewshire, Scotland, PA10 2AF
George Cayley Drive, Clifton +44 (0) 1505 707 700
Moor Industrial Estate, www.smcl.co.uk
York, North Yorkshire,
England, YO30 4XE Stribbons Ltd
+44 (0) 1904 692 333 The Linden Building, Regents
www.logopak.com Park, Off Booth Drive,
Wallingborough,
Markem-Imaje Ltd Northamptonshire,
Brightgate House, Brightgate England, NN8 6GR
Way, Trafford Park, Manchester, +44 (0) 1933 675 012
England, M32 OTB www.stribbons.com
+44 (0) 1618 648 100
www.markem-imaje.co.uk

155
The Microdistillers’ Handbook

The Label Makers The Tintometer Ltd


Labmak House, Prince Street, Lovibond House, Sun Rise Way,
Bradford, England, BD4 6HO Amesbury, Wiltshire,
+44 (0) 1274 681 151 England, SP4 7GR
www.labmak.co.uk +44 (0) 1980 664 800
www.lovibondwater.com
LABORATORY, ANALYSIS
& TECHNICAL SUPPORT LOGISTICS AND
WAREHOUSING
Bellingham + Stanley Ltd.
Longfield Road, Anchor Freight
North Farm Industrial Estate, 109 Barrie Road,
Tunbridge Wells, Kent, Hillington, Glasgow, Lanarkshire,
England, TN2 3EY Scotland, G52 4PX
+44 (0) 1892 500 400 +44 (0) 1418 922 080
www.bellinghamandstanley.com www.anchor-freight.co.uk
Cara Technology Culina Ambient
Randalls Road, Leatherhead, Hellaby Lane, Rotherham,
Surrey, England, KT22 7RY England, S66 8HN
+44 (0) 1372 439 990 +44 (0) 1630 695407
www.cara-online.com www.culina.co.uk

Gas Measurement Instruments Ltd Dachser


Inchinnan Business Park, Renfrew, Northampton Logistics Centre,
Renfrewshire, Scotland, PA4 9RG Thomas Dachser Way, Brackmills,
+44 (0) 141 812 3211 Northamptonshire,
www.gmiuk.com England, NN4 7HT
+44 (0) 1604 433 100
GSPK Design Ltd www.dachser.com
Knaresborough Technology Park,
Manse Lane, Knaresborough, Hellmann Worldwide Logistics
North Yorkshire, Kuhlmann House, Lancaster Way,
England, HG5 8LF Fradley Park, Lichfield,
+44 (0) 1423 798 254 England, WS13 8SX
www.gspkdesign.Itd.uk +44 (0) 1543 443300
www.hellmann.net
Integrated Scientific Ltd
Unit 3, Aspen Court, JF Hillebrand UK
Aspen Way, Centurion West Thurrock office, Dissegna
Business Park, Templeborough, House, Weston Avenue, Grays,
Rotherham, South Yorkshire, Essex, England, RM20 3ZP
England, S60 1FB +44 (0) 1708 689 000
+44 (0) 1709 830 493 www. jfhillebrand.com
www.integsci.com
Macintyre Scott Xtra
Strathkelvin Instruments Ltd Testwood House, Testwood Park,
Rowantree Avenue, Salisbury Road, Totton,
Motherwell, North Lanarkshire, Hampshire, England, SO40 2RW
Scotland, ML1 5RX +44 (0) 2380 660 074
+44 (0) 1698 730 400 www.macintyrescott.com
www.strathkelvin.com

156
Directory of services and suppliers

RSM Solutions North East Ltd French & Jupp’s


11 Sowerby Way, Durham Lane The Maltings, Stanstead Abbotts,
Industrial Park, Eaglescliffe, Ware, Hertfordshire,
Stockton-On-Tees, England, SG12 8HG
England, TS16 ORB +44 (0) 1920 870 015
+44 (0) 1642 791 315 www.frenchandjupps.com
www.rsm-solutions.co.uk
Greencore Group
UPS Midland Way,
UPS House, Forest Road, Barlborough Links Business Park,
Feltham, Middlesex, TW13 7DY Barlborough, England, S43 4XA
+44 (0) 20 8479 7199 +44 (0) 1909 545 900
www.ups.com www.greencore.com

Logistics TDG McPherson Joseph Flach & Sons Ltd


Fisherton Garage, Aberlour, 22 Maxwell Road, Peterborough,
Banffshire, Scotland, AB38 9LB Cambridgeshire,
+44 (0) 1340 871 401 England, PE2 7JD
www.mepherson.Itd.uk +44 (0) 1733 371 221
www.josephflach.co.uk
Sangobeg Ltd (Broxburn)
56 Torridon Road, Broughtyferry, Lupofresh Ltd.
Dundee, Scotland, DD5 3JH Stocks Farm, Suckley,
+44 (0) 1382 770 030 Worcestershire,
England, WRé6 5EH
Wincanton +44 (0) 1886 884 202
Methuen Park, Chippenham, www.britishhops.org.uk
Wiltshire, England, SN14 OWT
+44 (0) 1249 710 000 Micronized Food Products
www.wincanton.co.uk Standard Way, Northallerton,
North Yorkshire,
MALTS, SUGARS & England, DL6 2XA
ADJUNCTS +44 (0) 1609 751 000
www.micronizedfoodproducts.co.uk
Bairds Malt Ltd.
Station Maltings, Station Road, Muntons plc
Witham, Essex, England, CM8 2DU Cedars Maltings, Stowmarket,
+44 (0) 1376 513 566 Suffolk, England, IP14 2AG
www.bairds-malt.co.uk +44 (0) 1449 618 300
www.muntons.com
Crisp Malting Group Ltd
Great Ryburgh, Fakenham, Murphy & Son Ltd
Norfolk, England, NR21 7AS Alpine Street, Old Basford,
+44 (0) 1328 829 391 Nottingham, Nottinghamshire,
www.crispmalt.com England, NG6 OHO.
+44 (0) 1159 785 494
DDW The Colour House www.murphyandson.co.uk
Trafford Park, Manchester,
Greater Manchester, England, Ragus Sugars
M17 1PA (Manufacturing) Ltd.
+44 (0) 161 886 3345 830 Yeovil Road, Berkshire,
www.ddwcolor.com England, SL1 4JG
+44 (0) 1753 575 353
www.ragus.co.uk

157
The Microdistillers’ Handbook

Simpsons Malt Ltd Antalis Packaging


Tweed Valley Maltings, Berwick- 41 Road One Winsford Industrial
upon-Tweed, Northumberland, Estate, Winsford, Cheshire,
England, TD15 2UZ England, CW7 30B
+44 (0) 1289 330 033 +44 (0) 8702 411 466
www.simpsonsmalt.co.uk www.antalisoackaging.co.uk
Thomas Fawcett & Sons Ltd.
EastField Lane, Castleford, Avina International
West Yorkshire, England, WF10 4LE First Floor, Woburn Court,
+44 (0) 1977 552 460 2 Railton Road, Woburn Road
www.fawcett-maltsters.co.uk Industrial Estate, Bedford,
England, MK42 7PN
Tuckers Maltings +44 (0) 7801 057 666
Teign Road, Newton Abbot, www.avinainternational.co.uk
Devon, England, TQ12 4AA
+44 (0) 1626 334 002 Ball
edwintucker.co.uk Tongwell, Delaware Drive,
Milton Keynes, Greater London,
Warminster Maltings Ltd England, MK15 8HG
39 Pound Street, Warminster, +44 (0) 1908 517 600
Wiltshire, England, BA12 8NN www.ball.com
+44 (0) 1985 212 014
www.warminster-malt.co.uk Beatson Clark
The Glass Works,
PACKAGING SUPPLIERS Greasbrough Road, Rotherham,
South Yorkshire, England, S60 1TZ
A &S Packing +44 (0) 1709 828 141
Block 15, Vale of Leven Industrial www.beatsonclark.co.uk
Estate, Dumbarton, Glasgow,
Scotland, G82 3PD Bell Packaging
+44 (0) 1389 768 660 Barratt Industrial Park,
www.aspacking.co.uk Airport Way, Luton, Bedfordshire,
England, LU2 9NH
AEC Packaging +44 (0) 1582 459 292
L-1-10, Kuchai Business Park, www.belloackaging.com
No.2, Jalan 1/127, Off Jalan
Kuchai Lama, Kuala Lumpur, Billerudkorsnas UK Ltd
Malaysia, 58200 11 The Triangle, Enterprise Way,
+603 7494 1268 Nottingham, Nottinghamshire,
www.aecworldwide.com England, NG2 1AE
+44 (0) 1158 229 950
Aegg Creative Packaging www.b.comillerudkorsnas
Fellows House, Royce Close,
West Portway Industrial Estate, Burgopak
Andover, Hampshire, Units A&D, Flat Iron Yard,
England, SP10 3TS 14 Ayres Street, London,
+44 (0) 1722 416 401 Greater London,
www.aegg.co.uk England, SE1 1ES
+44 (0) 20 7089 1950
Allpack Packaging www.burgopak.com
Midddlemore Lane West,
Walsall, West Midlands,
England, WS9 8BH
+44 (0) 1922 472 400
www.allpackpackaging.co.uk

158
Directory of services and suppliers

Cartotecnica Ltd Coveris


2 Debdale Road, Pinchbeck, England,
Wellingborough, +44 (0) 1775 717 300
Nottinghamshire, www.coveris.co.uk
England, NN8 5AA
www.cartotecnicarossi.it/eng Cullen Packaging
Dawsholm Industrial Estate,
Castle Colour Group 10 Dawsholm Ave, Glasgow,
3 Morgan Way, Norwich, Lanarkshire, Scotland, G20 OTS
Norfolk, England, NR5 9JJ +44 (0) 1419 452 222
+44 (0) 1603 741 278 www.cullen.co.uk
www.castlecolour.co.uk
Domino Printing Sciences Plc
CBT Packaging Ltd Trafalgar Way, Bar Hill,
Unit D2 Zenith, Paycocke Road, Cambridge, England, CB23 8TU
Basildon, Essex, +44 (0) 1954 782 551
England, SS14 3DW www.domino-printing.com
+44 (0) 1268 247 380
www.cbtpackaging.co.uk DS Smith Packaging
Units 6&7, Newbridge Trading
Ceva Logistics Estate, Newbridge Close, Bristol,
Excelsior Road, England, BS4 4Ax
Ashby-de-la-Zouch, +44 (0) 845 260 70 80
England, LE65 1NU www.dssmith.com
+44 (0) 3305 877 000
www.cevalogistics.com Duncan Print
Broadwater House, Mundells,
Charapak Ltd Welwyn Garden City,
Salcombe Road, Hertfordshire, England, AL7 1EU
Meadow Lane Industrial Estate, +44 (0) 1707 336 271
Alfreton, Derbyshire, www.duncanprint.co.uk
England, DE55 7RG
+44 (0) 1773 835 735 Elanders
www.charapak.co.uk Unit B, Merlin Way,
Newcastle Upon Tyne, Tyne &
Charpak Ltd Wear, England, NE27 00G
30 St Peters Road, +44 (0) 1912 800 400
Huntingdon, Cambridgeshire, www.elanders.com
England, PE29 7DG
+44 (0) 1480 434 434 Eska Graphic Board Uk Ltd
www.charpak.uk PO Box 90, Sappemeer,
Netherlands, 9610
Clarke Rubicon +31 598 318 911
Telford Way, Stephenson www.eska.com
Industrial Estate, Coalville,
Leicestershire, England, LE67 3HE Esko UK (Solihull)
+44 (0) 1530 513 700 The Rhodium, Blythe Valley Park,
www.clarke-rubicon.co.uk Solihull, West Midlands,
England, B90 8AS
Complete Co-Packing Services +44 (0) 121 667 4200
Unit 6, Ynysboeth Estate, www.esko.com
Mountain Ash, Abercynon,
Rhondda, Wales, CF45 4SF
+44 (0) 1443 740 786
www.complete-copacking.co.uk

159
The Microdistillers’ Handbook

Essentra Glossop Cartons


Giltway, Giltbrook, Nottingham, Raymond Joseph Works, Unit 5,
Nottinghamshire, England, NG16 2GT Haigh Ave, Whitehill Industrial
+44 (0) 115 975 9000 Estate, Reddish, Stockport,
www.essentra.com England, SK4 1NU
+44 (0) 1614 803 568
Falconer Print & Packaging
Unit G5 Lowfields Business Park, Granby Marketing Services
Elland, West Yorkshire, Stanley Street, Blackburn,
England, HX5 9HB England, BB1 3BW
+44 (0) 1422 373 377 +44 (0) 1254 682 702
www.falconerprint.co.uk www.granbymarketing.com
FMP Graphic Packaging
Unit 8 Hightown, Interlink Park, Bardon,
Whitecross Industrial Estate, Leicestershire, England, LE67 1PE
Lancaster, Lancashire, +44 (0) 1530 518 200
England, LA1 4XS ww.graphicokgeurope.com
+44 (0) 152 448 737
flexible-medical.co.uk Herbert Walkers Ltd
113 Docktield Road, Shipley, West
Foilco Yorkshire, England, BD17 7AS
Enterprise Way, Lowton St Mary's, +44 (0) 1274 531 828
Cheshire, England, WA3 2BP www.herbertwalkers.co.uk
+44 (0) 1942 262 622
www.foilco.co.uk HH Deluxe Packaging
49 Leigh Road, Eastleigh,
G F Smith Hampshire, England, SO50 9DF
Lockwood Street, Hull, +44 (0) 2380 625 864
East Riding of Yorkshire, www.hhdeluxepackaging.com
England, HU2 OHL
+44 (0) 1482 323 503 Hunter Sourcing
www.gfsmith.com Harpenden Hall, Southdown
Road, Harpenden, Hertfordshire,
Gaasch Pack Ltd England, AL5 1TE
Flat G/2, Imperial Tower, 1 +44 (0) 1582 711 877
Meadowside Quay Square, www.huntersourcing.net
Glasgow, Glasgow, Scotland, G11 6BS
+44 (0) 1413 393 344 Ibis Packaging Solutions
www.gaaschpack.eu Unit 10 Colthrop Business Park,
Clothrop Lane, Thatcham,
Garthwest Ltd. Buckinghamshire,
13 Rotterdam Road, England, RG14 9NB
Sutton Fields, Kingston Upon Hull, +44 (0) 1639 890 609
East Riding of Yorkshire, www. ibispackaging.co.uk
England, HU7 OXA
+44 (0) 1482 825 121 iDi Pac Ltd
www.garthwest.com 5 Ridgeway Office Park,
Bedford Road, Petersfield,
Gilmour & Dean / Eurostampa England, GU32 30F
24 Clydehom Road, Clydeside +44 (0) 1420 538 055
Industrial Estate, Glasgow, www.idipac.com
Scotland, G14 000
+44 (0) 141 272 8500
www.eurostampa.com/en

160
Directory of services and suppliers

IDP Direct Great Britain Keenpac


Norfolk House, 4 Station Road, Keenpac, Centurion Way,
St. Ives, England, PE27 5AF Meridian Business Park, Leicester,
+44 (0) 1487 802 082 Leicestershire, England, LE19 1WH
the-idp-group.com +44 (0) 1162 890 900
www,keenpac.com
Iggesund Paperboard
Workington Mill, Workington, Kingsmoor Packaging
Cumbria, England, CA14 1JX Cary Court, Bancombe Road
+44 (0) 1900 601000 Industrial Estate, Somerton,
www.iggesund.com/en Somerset, England, TA11 6SB
+44 (0) 1458 273 001
Interlok Packaging Ltd www.kingsmoorpackaging.co.uk
Gareloch Industrial Estate,
Port Glasgow, Renfrewshire, KTEC Group
Scotland, PA14 5UG 93B Heming Road, Washford
+44 (0) 1475 707 669 Industrial Estate, Redditch,
www.interlokpackaging.co.uk Worcestershire, England, B98 OEA
+44 (0) 1527 529 713
Interscope Productions Ltd www.ktecgroup.co.uk
47 St Saviours Road, Croydon,
Surrey, England, CRO 2XE Law Print Pack
+44 (0) 2032 876 996 4 Rhino Court, Station View,
www.interscopeproductions.com Hazel Grove, Stockport, Cheshire,
England, SK7 5ER
INWK +44 (0) 1614 407 302
600 West Chicago Avenue, lawprintpack.co.uk
Chicago , U.S.A., IL 60654
+1 866 766 5176 Lemonpath
www.inwk.com Unit 1B, Wanlip Road Industrial
Estate, Wanlip Road, Syston,
Jacob White Packaging Ltd Leicestershire, England, LE12 9TO
Riverside Industrial Estate, +44 (0) 1162 645 000
Unit F, Riverside Way, Dartford, www.lemonpath.co.uk
Kent, England, DA1 5BY
+44 (0) 1322 272 531 Leo Luxe
www.jacobwhite.com 16 Wang Hoi Road, Level 9, Telford
House, Hong Kong, 120608
James Cropper Speciality +852 251 306 98
Papers Ltd www.webpackaging.com
Burneside Mills, Kendal,
Cumbria, England, LA9 6PZ Linx Printing Technologies
+44 (0) 1539 722 002 Linx House, 8 Stocks Bridge Way,
www.jamescropper.com Compass Point Business Park, St
Ives, Cambridgeshire, England,
Jenton Intl PE27 3lA
9/10 Ardglen Industrial Estate, +44 (0) 1480 302 100
Ardglen Road, Whitchurch, www..linxglobal.com
Bedfordshire, England, RG28 7BB
+44 (0) 1256 892 194
www.jenton.co.uk

161
The Microdistillers’ Handbook

Macfarlane Packaging NMC


Siskin Parway East, Tafarnaubach Industrial Estate,
Middlemarch Business Park, Tredegard, Wales, NP22 3AA
Coventry, West Midlands, +44 (0) 1495 713 266
England, CV3 4PE www.nme-uk.com
+44 (0) 8002 888 822
shop.macfarlanepackaging.com OKI Systems (UK) Ltd
Blays House, Wick Road, Egham,
Mailway Packaging Solutions Surrey, England, TW20 OHJ
12-16 Pitcliffe Way, +44 (0) 1784 274 300
Upper Castle Street, West www.oki.co.uk
Bowling, Bradford,
England, BD5 7SG Packology Ltd
+44 (0) 1274 720 019 27 Fitzroy Drive, Cherque Farm,
www.mailway.co.uk Lee-On-The-Solent, Hampshire,
England, PO13 8LY
Martek Industries +44 (0) 7971 508 421
12B Ridings Industrial Estate, www.packology.com
Eastern Ways, Cannock,
Staffordshire, England, WS11 7SF Pallite
+44 (0) 1543 502 202 60 Sinclair Drive, Park Farm North
www.martekindustries.co.uk industrial Estate, Wellingborough,
Northamptonshire,
McLaren Packaging England, NN8 6UY
Gareloch Road Industrial Estate, +44 (0) 1933 283 920
Port Glasgow, Glasgow, www.paperpallet.co.uk
Scotland, PA14 5XH
+44 (0) 1475 745 246 Penn Packaging
www.mclarenpackaging.com Harkstead Hall Barn, Harkstead,
Ipswich, Suffolk, England, IP9 1DB
MDA Ltd +44 (0) 1473 893 990
Client Support Centre, www.oenn-packaging.co.uk
Walker Park, Blackamoor Road,
Blackburn, England, BB1 2LG Pollard Boxes
+44 (0) 1254 278 279 Feldspar Close, Enderby,
www.mdaLtd.co.uk Leicestershire, England, LE19 4SD
+44 (0) 116 275 2666
Menshen Packaging www.pollardboxes.co.uk
Unit 92, Portmanmoor Industrial
Estate, Cardiff, Glamorgan, Polmac (UK)
Wales, CF24 9HB 3The Briars, Warrenwood, High
+44 (0) 2920 473 147 Wycombe, Buckinghamshire,
www.menshen.co.uk England, HP11 1ED
+44 (0) 1494 533 857
Message on a Bottle www.polmacuk.com
West Wemyss, Kirkcaldy, Fife,
Scotland, KY1 4SN Polypackaging
+44 (0) 1592 655 629 2/4 Whitfield Drive,
www.messageonabottle.biz The Heathfield Industrial Estate,
Ayr, Ayrshire, Scotland, KA8 FRX
MSO Cleland Packaging +44 (0) 1292 262 473
399 Castlereagh Road, Belfast, polypackaging.co.uk
Northern Ireland, BT5 6OP
+44 (0) 28 9040 0200
www.mso.co.uk

162
Directory of services and suppliers

PQ Corporation Sonoco Trident


Valleybrooke Corporate Center, (Image Linx UK Ltd)
300 Lindenwood Drive, Malvern, Julius Way, Station Park,
Pennsylvania, USA, 19355-1740 Lowmore Road, Kirkby,
+1 6106 514 200 Nottinghamshire,
www.pqcorp.com England, NG17 7RB
+44 (0) 1623 689 500
Progress Packaging www.imagelinx.co.uk
The Mill, 150 Penistone Road,
Huddersfield, England, HD8 8JO Staeger Clear Packaging Ltd
+44 (0) 1484.608.600 Unit 1, Swallowgate Business
www.progresspackaging.co.uk Park, Coventry, Warwickshire,
England, CV6 4BL
RPC Group +44 (0) 2476 581 197
Sapphire House, Crown Way, www.staegerclear.co.uk
Rushden, England, NN10 6FB
+44 (0) 1933 416 528 Strand Paper & Board
www.rpoc-bpi.com 100 Main Street, Bingley,
West Yorkshire,
RPC Group England, BD16 2JH
Sapphire House, Crown Way, Rushden, +44 (0) 1274 566 748
Northamptonshire, NN10 6FB www.strand-paper.co.uk
+44 (0) 1933 416 528
www.rpc-group.com Tetra Pak Ltd
The Foundation Herons Way,
SCA Packaging Chester Business Park, Chester,
Skepparplasten 1, Sundsvall, England, CH4 90S
Sweden, SE-851 88 +44 (0) 1978 834 000
www.sca.com/en www.tetrapak.com

Signet Branding The Box UK


Innovation House, Bakewell Road, Central Boulevard,
Orton Southgate, Peterborough, Blyrth Valley Business Park,
Cambridgeshire, England, PE2 6XU Solihull, West Midlands, B90 8AG
+44 (0) 1733 396080 +44 (0) 1676 492 902
www.signetbranding.com www.theboxuk.co.uk

Simply Cartons The OPM Group


Perry Road, Nottingham, The Colour Box, Gelderd Road,
Nottinghamshire, Leeds, England, LS12 6TG
England, NG5 1GQ, +44 (0) 113 231 1000
+44 (0) 1159 422 112 opmgroup.co.uk
www.simplycartons.co.uk
The Wilkins Group
Smithers Pira Private Road Number 1,
Cleeve Road, Leatherhead, Colwick Industrial Estate,
Surrey, England, KT22 7RU Nottingham, Nottinghamshire,
+44 (0) 1372 802 000 England, NG3 2JQ
www.smitherspira.com +44 (0) 1159 896 000
www.wilkins.co.uk

163
The Microdistillers’ Handbook

Tinpac Windmill Print


21A Newton Road, Swansea, Denmore Place, Bridge of Don,
Gwynedd, Wales, SA3 4AS Aberdeen, Aberdeenshire,
+44 (0) 1792 369 855 Scotland, AB23 8JS
www.tinpac.com +44 (0) 1224 828 000
www.windmilprint.com
Tinware Direct
Crowhill Farm, Ravensden Rd, Wine Emotion UK
Wilden, Bedford, Bedfordshire, The Lynchets, Bagnor, Newbury,
England, MK44 20S Berkshire, England, RG20 8AQ
+44 (0) 1234 772 001 +44 (0) 1635 282 230
tinwaredirect.com www.wineemotionuk.com

TRM Packaging Winter & Company UK Ltd


Red Cat Lane, Burscough, Stonehill, Stukeley Mead
Lancashire, England, L40 OSY Industrial Estate,
+44 (0) 1704 892 811 Huntingdon , Cambridgeshire,
www.trmpack.co.uk England, PE29 6ED
+44 (0) 1480 377 177
Tullis Russell www.winter-company.com
Church Street, Bollington,
Macclesfield, Cheshire, Woodway UK
England, SK10 50F Mallard Close, Earls Barton,
+44 (0) 1625 578 295 Northamptonshire, England, NN6é QJF
www.tullisrussell.com +44 (0) 1604 812 678
www.woodwayuk.com
Tungate Group
Boorkhouse Way, Cheadle, Yorkshire Packaging Systems
Staffordshire, England, ST10 1SR Woodkirk Freight Terminal,
+44 (0) 1538 755 755 Quarry Lane, Woodkirk, West
www.tungate.co.uk Yorkshire, England, WF12 7JJ
+44 (0) 1924 441 355
Vassi Group www.yps.co.uk
20 Woodside Place, Glasgow,
Lanarkshire, Scotland, G3 7OF Zenith Print & Packaging Ltd
+44 (0) 7557 503850 Gellihirion Industrial Estate,
www.vassigroup.com Treforest, Pontypridd, Cardiff,
Wales, CF37 5SX
Vetroplas Packaging +44 (0) 1443 841 166
Chalk Hill Cottage, 19 Rosary www.zenithprinting.com
Road, Norwich, England, NR1 1SZ
+44 (0) 1603 305 953 YEAST SUPPLIERS
www.vetroplas.com
AB Mauri
Visican Ltd Stockholm Road, Sutton Fields
115 Phillips Street, Aston, Industrial Estate, Hull,
West Midlands, England, B6 4PT East Yorkshire,
+44 (0) 1213 598 800 England, HU7 OXW
+44 (0) 1482 833 133
West Rock www.abmauriukandireland.com
14 Colthrop Business Park,
Colthrop Way, Thatcham,
England, RG19 4LW
+44 (0) 1635 290500
www.westrock.com

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
The Microdistillers’ Handbook

contract bottling 79-80 Campaign for Real Ale


equipment 80 (CAMRA) vi, 12
for the export market 123 Carl 51
HMEC regulations 138 Carter Head still 74
labels 79, 116-117 cash-flow 37, 85
on-site bottling 80 cask ‘futures’, sale of 119
services and suppliers casks 64-65, 75
147-148, 149, 153-155 first-fill casks 65
Bowler, Paul 35-37 maturation 65
Bowmore 68 oak casks 65
brand identity 38 quality control issues 81
brand loyalty 84 services and suppliers
brandy 148-149
alcoholic strength 29 sherry casks 62, 65
cider brandy 19, 78 categories of spirit drinks 91
definition 29 cattle feed 59, 70
grain brandy 29 Charles, Prince of Wales 9
BrewDog 14, 20 Chase 18, 19, 57, 63, 73
brewers, diversification into Chivas Regal 10
distillation vii, 12, 19-20 cider brandy 19, 78
BrewLab 43 cider spirit 29-30
Brexit implications for The Classic Malts 5
exports 123-124 cocktails vi, 6
Briggs plc 50 Coffey, Aeneas 3, 48, 49, 74
British Distillers Alliance Coffey still 3-4, 48, 103
(BDA) 21-22 cognac 3
Bruichladdich 14 column (continuous) stills
Buchanan, James 4 3-4, 47, 48, 66-67
Bushmills 3 compounding 43, 74, 75
business plans 83-86 compounder’s licence 94
HMEC legal requirement consignment trading 115
83 consultants 38-39
matters covered by 83-86 case studies 7-9, 40-41
SWOT analysis 86 Consumer Contracts
Regulations 2013 106-107
Cc Consumer Rights Act 108
Cambridge Distillery 49 continuous stills see column
Camden Town Brewery 20 (continuous) stills
Cameron, Pete and Danny Copper House Distillery 19,
15-17 74, 96-97

166
Index

coppers see boilers distilleries


cork stoppers 79, 123 designing 7-9, 38, 40-41
Cotswolds Distillery 50, 55, equipment see equipment
76 turnkey projects 40, 49, 50,
‘courtyard’ distilleries 9 51
Crafdi Directory of European see also gin distilleries;
Distilleries 23 whisky distilleries
Craft Distillery Design 38 distillery production returns
Craft Distilling Business 38 101, 104, 128-129
Craft Distilling Expo 22-23 distribution 115
Crow, Simon 118-120 Dornoch 56
crowdfunding 102, 119 draff 59, 70
cut points 48, 71, 72 Drimnin 8
dunnage 8
D Dunnet Bay Distillers 14, 18
Dark Matter 18 duty see Excise Duty
Dartmoor Distillery 9, Dyfi Distillery 15-17
118-120
Day, Alasdair 40
DCL5 East London Liquor
deferment warrants 141 Company 65, 102-103
definitions 27-34 eau de vie 18, 19
demand, rising vi eau de vie de biére 97
denaturing and destroying Ecommerce Regulations 2002
alcohol 143 108-109
densimeters 92, 129-130 Eden Mill 55
Dewar, Tommy 4 Edinburgh Gin 21
Diageo 10, 11, 58 Elizabeth 13
diplomas and certificates 24, energy efficiency 7, 96
42 The English Spirit Distillery
distance selling 106-109 18
cancellation rights 107-108 environmental
‘durable’ confirmation 107 consciousness 7, 58-59, 70
legislation 106-109 equipment 43-49
distillation boilers 44-45, 47
batch distillation 47 bottling 80
continual distillation 47 case study 44-45
definition of 2 hot liquor tank 46
history of 2-5 manufacturers 49-51,
distillation periods 91, 128 55-56

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The Microdistillers’ Handbook

mash tuns 46-47, 69, 70 F


raw materials see raw
farm diversification projects
materials
vii, 20
services and suppliers feints 71, 73, 130
152-153
disposal of 130
stills see stills
duty-unpaid samples
washbacks 47, 70
91-92, 129
Excise Duty 87, 92-93, 101, fermentation 70-71, 72
131
secondary 71
accounting periods 91, 128 short fermentations 71
calculation of 143
fermenting vessels see
chargeable 92-93 washbacks
deferment of 142 festivals 111
duty drawback 143 finance
duty free sales 124 cash-flow 37, 85
duty stamps 79, 98-99 financial forecasts 85-86
duty suspension 89, 93, 94, financial guarantees
127, 132, 135, 136, 137, 136-137
139, 140, 143
writing a business plan
duty-unpaid samples 129 83-86
guarantee cover 136-137, see also funding
142
Fisk, Sarah 96, 97
losses and 90, 93, 131, 135 foreshots 71, 73
payable 93, 131 Forsyths 50
quarterly distillery returns 45West 43
101, 104, 128-129
Fraser, Garry 41
excise warehouse returns 139 Free Trade Agreements
exports 97, 121-124 (FTAs) 123-124
bottling and packaging Friary Liqueurs 64
issues 123 Frilli 51, 55
Brexit implications 123-124 Fulton Boilers 44-45
certificates of age and
funding
origin 93 crowdfunding 119
importers, relations with loans 86
122
sale of cask ‘futures’ 119
information services 121 fusel oil 130
leading and emerging
markets 122
pricing policies 121-122
statistics (UK) 10, 121

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

legal provisions governing


144-145
J
J&B 10
licences vii, 12-13, 87-94,
James, Felix 44-45
113-114, 126-127 JJ Whitley 14
Notice 39 126-131
John Dore & Co Ltd 49-50
Notice 196 132-139
Johnnie Walker 10
Notice 197 140-143
Joseph Brown Vats 70
record-keeping
requirements 100-101,
127-128
K
Kilchoman 56, 68
review and appeal
Knight, Carl 44
procedures 144
security requirements L
90-91, 128 labels
Spirit Drinks Verification design of 79
Scheme 90 health warnings 116-117,
visits to premises 132 123
see also Excise Duty
information on 79, 100,
‘hobby’ stills vii 116-117, 123
Hoga 55 Langley Distillery 39
Hogarth, William 6 Laphroaig 68
Holstein 55, 102 leaflets 84
honey or mead nectar 33 Ledbetter, Tarquin 14
hot liquor tank 46
legal statutes 144-145
Hven 40 LH Stainless 41, 51
hybrid stills 48-49 licences vii, 12-13, 87-94,
hydrometers 71, 139 113-114, 126-127
1,800 lower limit 13, 90
application process 88
Ian Macleod Distillers 21
approval of plant and
iMash system 40
process 89-90, 126-127
Inchdairnie 14, 55 distiller’s licence 88-89, 90,
Institute of Brewing and 126
Distilling (IBD) 23-24, 39, legislation 87
42
pre-application steps
internet sales 110, 115
88-89, 113
inventory checking system rectifier’s and
135
compounder’s licence 94
Isle of Harris Gin 63
responsibilities 87
iStill 55-56, 76

170
Index

revocation of 135 business plan 84


Lindores 8-9 leaflets 84
liqueurs merchandise 111
alcoholic strength 33 press releases 110-111
aniseed-based 64 professional PR 111
cream liqueurs 64 promotional events 111
definition 32-33 social media 84, 97, 110
equipment 46 unsolicited marketing 109
herbal 64 visitor experiences 8, 37,
nut-based 64 54, 67, 84,111, 113
recipe development 64 websites 84, 109, 110
loans 86 mash tuns 46-47, 69, 70
Loch Ewe 13 lauter tuns 47
Loch Ness 56 mashing 69-70, 72
The London Distillery iMash system 40
Company 13, 61, 62 Master Brewer/ Distiller
London Dry Gin 6, 17, 74 qualification 24
Lone Wolf 13-14, 20, 55, 57 Meantime Brewing Company
low wines 71, 72, 130 20
Ludlow Vineyard 18-19 Mellor, Tom and Gill 66-67
Lumsden, Bill 76 merchandise 111
methanol 29, 30, 31-32, 45,
M 143
Macallan 4, 50, 61 microbrewing 12
McAuliffe, Jack 12 microdistilling
McHardy, Frank 118 add-ons to existing
Mackie, Peter 4 businesses 18-19
McMillan 50-51 history of 12-14, 18
Macpherson-Grant, Guy 112 Mile Hi Stills 16
mailshots 109 Millar, Craig 118-120
maize 56 milling 69, 72
major company acquisitions molasses 47, 57, 74, 75
20-21 Molin, Henric 40
malted barley 56, 61-62,
68-69
malting floors 68 Naked Gin Uncut 77
marketing 109-111 National Enterprise Network
advertising 111 86
bottle and label design Nelson's Gin Distillery 43
78-79 neutral grain spirit (NGS) 36,

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The Microdistillers’ Handbook

43, 53, 56, 57, 63, 74 industrial units vii


‘new-make’ 48, 113 and licence application 88,
Nicol, Alex and Jane 21 89
Notice 39 (HMRC) 126-131 premises guarantee 136,
Notice 196 (HMRC) 132-139 137
Notice 197 (HMRC) 140-143 warehousing see
nut-based liqueurs 64 warehousing
see also distilleries
O press releases 110-111
off-trade 115 promotional events 111
online sales see internet sales provenance vi, 4, 20, 43, 77,
Organic Distilleries Ltd 7-9, 84
38
organolpetic characteristics Q
28, 29, 30, 31 qualifications 24, 39, 42
quality control 80-81
P quarterly distillery returns
packaging 16-17, 78 101, 104, 128-129
services and suppliers
157-164
see also bottling; labels Raasay Distillery 40-41, 55
pastis 18, 32 Raleigh, Sir Walter 3
Pennycook, Liam 77 raw materials 56-59
Pernod Ricard 10, 11, 21, 58 barley see barley
perry spirit 29-30 maize 56
Pickering, Marcus 52-54 molasses 47, 57, 74, 75
Pickering’s Gin Distillery potatoes 18, 19, 57, 63, 64,
52-54, 65 73
pipework 41 waste disposal 58-59
Plymouth Gin 6 water 57-58
pomona 19 wheat 57
pot ale 59 yeast 47, 57, 62, 70
pot stills 4, 47-48, 71, 72 ‘Real Ale’ revival 12
spirit still 71 recipe development
wash still 71 gin 63
potatoes 18, 19, 57, 63, 64, 73 liqueurs 64
precision-distilling 16 vodka 63-64
premises whisky 61-63
expansion 85 record-keeping 100-101, 114,
farm buildings vii 127-128, 130

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
The Microdistillers’ Handbook

‘Spirit Drink’ 13-14 Temperley, Julian 19


spirit drinks categories 91 terroir 8, 9
Spirit Drinks Regulation third-party distillers 43
(110/2008) 117, 121 third-party warehousing 89
Spirit Drinks Verification Thompson, David 20, 67
Scheme 90 Three Rivers 43
Spirit of Yorkshire 66-67 Three Stills 111
Spirits Act (1860) 4 time to market 40
Spirits Duty see Excise Duty tinctures 75
spirits industry (UK) Toad 61, 63
economic overview 10 tourist organisations,
established and new engagement with 84
distilleries 11-12 trade associations 21-25, 147
exports 10 trade facility warehouses 136,
numbers employed 10 137
staffing 85 trade shows 22-23
Stein, Robert 3, 48 training 39, 42-43
stills 47-49 diplomas and certificates
‘beer stripping still’ 72 24, 42
Carter Head still 74 turnkey projects 40, 49, 50, 51
Coffey still 3-4, 48, 103 Twin River 14, 20, 56, 76-77
column (continuous) stills
3-4, 47, 48, 66-67
copper contact 72 Usher, Andrew 4
electrically powered 44, 45
heat sources 48, 53 V
hybrid stills 48-49 vacuum distillation 49
pot stills 4, 47-48, 71, 72 Verdant Spirits 56
steam-based systems 44, 45 vermouths 18
stock marking and control Victory Gin Distillery 49
134-135 visitor experiences 8, 37, 54,
Strathearn 55 67, 84, 111, 113
Swan, Dr Jim 67 vodka 6, 11, 14, 19
SWOT analysis 86 alcoholic strength 30, 73
cask finishing 65
T definition 30-31
Tanqueray 11 exports 10
Tarquin’s 14, 18 flavoured vodkas 18, 30-31
tasting panels 80 ingredients see raw
Techni-K Consulting 39 materials

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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“Over the past decade we've the gin boom


seen
take hold, and the number of distilleries has
expanded exponentially.”

The march of microdistilling proceeds at a pace, with extensive


growth continuing across the UK in 2019. Much of the boom
has been down to the huge increase in gin sales, which have
doubled in value during the past six years. The aim of this book
is to tap into the ever increasing interest in microdistilling,
including starting up your very own microdistillery and
creating those distinctly different spirits, be they gin,
whisky, vodka, rum or liqueurs.
If you have ever aspired to firing up your very own pot still,
this book will guide you through the whole process from
acquiring the necessary skills, advising on what equipment
is required, right through to the various routes to market.

Where to find the relevant skills


Raising the finance and locating the right premises
Sourcing the correct equipment
Detailed case studies of those who have started their
own microdistilleries, illustrating many of the problems
and solutions they encountered along the way
Directory of services and suppliers
HMRC regulations and requirements

ISBN 978-1-9998408- ce )

|
edora 0Ls,

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