We’re excited to welcome MKD Collective to the FIVE x 5 Distillery Consulting Partner network! If you haven’t met her yet, MKD Collective is led by Katie Gezon, who brings more than a decade of experience in the alcohol and beverage industry. She’s managed operations at Coca-Cola, Anheuser-Busch, and Pepsi, leading large production teams and…
CALIFORNIA DTC SHIPPING FOR DISTILLERS PASSES
California has officially passed Assembly Bill 1246 (AB 1246), a major milestone for craft distillers both within the state and across the country. The new law, set to take effect on January 1, 2026, extends and expands California DtC (direct-to-consumer) shipping privileges, opening new sales channels for producers and more convenience for craft spirits enthusiasts….
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DUPLICATING FINISHED PRODUCTS: FROM MANUAL WORK TO EFFORTLESS DUPLICATION
At FIVE x 5, innovation isn’t just about adding new features, it’s about making life easier for the people who bring great spirits to life. Every update to DISTILL x 5 starts with a simple question: how can we help our customers work smarter, not harder? In the past, introducing a new proof or variant…
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Avoiding Common COLA Submission Pitfalls: A Guide for US Distillers
If you’ve ever had a Certificate of Label Approval (COLA) rejected by the Alcohol and Tobacco Tax and Trade Bureau (TTB), you know how frustrating it can be. From seemingly minor formatting errors to incomplete statements of composition, label approvals can turn into bottlenecks that delay production and derail launches. With TTB staffing still stretched…
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Dispelling Misconceptions about Methanol, Heads, Boiling Points and Miscibility
While consulting for FIVE x 5, I’ve been lucky enough to meet distillers from all walks of life, and at all stages of the learning process. One of the appealing things about this industry is that you can always learn more – I’ve been doing it since 2018 and I still learn something new most…
A Century of Distilling: 100 Years of Craft and Innovation
The art and science of distilling have undergone profound transformations over the last century. From the challenges of Prohibition to the rise of craft distilleries, the distilling industry has continuously adapted, innovated, and thrived. Let’s take a journey through the decades, exploring the milestones that have shaped the industry into what it is today. 1920s:…
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TTB Adds 13 New Bottle Sizes (Fill Heights)!
TTB has made a significant change to fill height regulations – one that most distilleries will find positive. They eliminated the distinction between bottles and cans, and added thirteen new authorized fill sizes! Allowable Fill Heights, Prior to January 10th, 2025: 1.8 Liters Bottles Only 1.75 Liters Bottles Only 1 Liter Bottles Only 900 mL…
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Gauging of Obscured Spirits by Weight
This is an advanced-level article that presumes working knowledge of gauging and proofing terms and methodologies. It includes excerpts from an article entitled Proofing and Gauging that I wrote for Craft Spirits Magazine, as well as presentations I’ve given over the years. If you have product on hand that has 6g/Liter or more of dissolved…
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3 Most Common Accidental TTB Violations
As we wrap up a dynamic 2024, it’s wise to take a moment to reflect on some common TTB audit findings. Avoiding these pitfalls can save you significant time and expense – and you’re required to follow all the regulations, anyway! 1. Incomplete Gauge Records TTB regulations require you to gauge your spirit at various…
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The Top 5 Hidden Costs of Running a Distillery—and How to Avoid Them
Running a distillery is a labor of love, but it’s also a business with tight margins and complex operations. While many distillers account for obvious expenses like raw ingredients, barrels, and equipment, hidden costs can quietly chip away at profits if left unchecked. These costs often lurk in inefficiencies, overlooked compliance requirements, and production losses….
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Tips to Optimize Your Distillery’s Operations Using DISTILL x 5
In the distilling world, efficiency is the secret ingredient to success. When margins are tight and demand is climbing, streamlining operations isn’t just about staying afloat—it’s about thriving. Whether you’re running a small craft shop or managing a larger distillery, DISTILL x 5 is here to help optimize every step of the process without compromising…
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10 Marketing Tips for Distilleries in 2024
The distillery industry continues to evolve rapidly here in 2024 and with that comes new challenges and opportunities for marketing your brand effectively. Whether you’re a small craft distillery or a larger operation, staying ahead of the curve is essential to stand out in this crowded market. Here are ten marketing tips to help your distillery…
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Usually Not Legal: Receiving Cans by Transfer in Bond
This post is intended to be a quick Public Service Announcement since we’ve observed an increase in this type of transaction. Both copackers and distillers are routinely running afoul of regulations surrounding Transfer in Bond of bottled/canned product, by sending and receiving canned product via Transfer in Bond. Unless the copacker and their distillery client…
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What Does Fx5 Consulting Do, Anyway?
As a Consultant, I’m often asked what exactly I have to offer. My gut feeling is to say: “everything!”, but my therapist would probably push back on that. Joking aside, I love this question because it has many different answers – I’m fortunate enough to work with nano-distilleries that produce 10 proof gallons per year…
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Considerations for Writing Effective Copacking Contracts
Distilleries in the US are often approached by businesses and individuals who are interested in having the distillery produce and/or bottle product on their behalf. These arrangements are simple to describe in plain English, but they are deceptively complicated “under the hood”. In addition to Federal Trade Practice regulations, these arrangements are typically governed by…
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Three Loopholes/Gimmes From the TTB You Are Missing Out On
TTB regulations are stiff for the most part, but if you are a careful student, you can find some regulatory “freebies” that can save you significant amounts of time and money. Here, we’ll cover three of the most important ones. 1) You Don’t Have to Take Physical Inventory of Barrels This one’s a bit tricky because…
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Voluntary Destruction vs. Losses – What’s Taxable?
At first glance, you might wonder why regulations distinguish between Voluntary Destruction and Losses. The key differences: In either case, you’re typically not taxed on the quantity lost/destroyed – but let’s dive in deeper. Voluntary Destruction Voluntary Destruction is covered in 27 CFR 19.459, which states: A proprietor may voluntarily destroy spirits […] or wines…
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Flow Meters Aren’t Always Your Friend
Flow meters are used to measure the amount of liquid flowing through a pipe. It’s not hard to see why this is an appealing proposition for a distillery, which is full of moving liquid that must be tracked and measured constantly. Unfortunately, most flow meters are unsuitable for spirits. Typical magnetic flow meters will not…
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Blending Different Whiskey Mash Bills Doesn’t Work How You Think It Does
A long-time client and friend called me one day and said: “Listen, our production guys messed up a batch of Rye and the mash bill is all wrong. We know exactly what went into the mash/ferment, and we’ve calculated how to adjust our Bourbon mashbill so that we can blend-in this mistaken Rye distillate in…
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Remove Your Finished Goods in Sealed, Whole Case Increments
Both DISTILL x 5 and Whiskey Systems offer you the ability to generate Case Labels for your bottled, finished goods, which helps you to meet your CFR requirements for case marking: But this is just the beginning of regulations around cased goods. You are also required to fill cases with properly filled & closed bottles….
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Controlled Groups and 100,000 PGs/yr
Most distillers are aware of the Craft Producer tax break on the first 100,000 PGs/yr of product removed in a calendar year. When the tax break was first announced in 2018, there were some loopholes that allowed producers to sometimes take advantage of multiple 100,000 PGs/yr allotments. Those loopholes have largely been closed through subsequent…
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Can you “Keg” Ready-to-Drink Cocktails at a Distilled Spirits Plant?
A frequent question from DSPs is how do I record the production and sale/shipment of ready-to-drink (RTD) cocktails in Keg format (e.g. sixtel, corny keg, beer kegs, etc)? The short answer: in the United States, you cannot. The background is usually the same: a cocktail in the Tasting Room becomes popular and turns into a…
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All About Bottle Bills for Distilled Spirits
“Container Deposit” schemes are State regulations aimed at reducing waste and/or increasing return rates of used beverage containers. The legislation that creates these programs is often called a “Bottle Bill”. While Bottle Bills are commonplace for soda cans and other beverage containers, distilled spirits have long enjoyed an exception to those regulations in most states….
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New Formulation Checklist
Are you working on a new formulation? Here’s a few common ‘gotchas’ to watch out for: Does this seem daunting? If you’d like help with Formula requirements, COLAs/Labels, or any other DSP operations we’re here to help. Reach out here to schedule time on my calendar and take your operations to the next level. Tyler…
Inventory Management -Everything You’ve Ever Wanted to Know but Were Afraid to Ask
Inventory Management is one of those tasks that isn’t hugely rewarding while you’re doing it, but the benefits from good record-keeping are profound. Managing the cycle of raw materials, dry goods and finished products will allow your business to grow and react to changes. In today’s world of disrupted supply chains, staying on top of…
Proofing and Gauging – Density Meters (Densitometers)
This article on density meters assumes that you have a good understanding of proofing/gauging and the associated vocabulary. Check out our previous blog post “Proofing & Gauging 101” for that overview if you haven’t already. A density meter is a device that determines the density of a liquid or gas, which you inject or pump…
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Proofing and Gauging 101
Before we dive into the topic of proofing and gauging, it’s useful to establish some background and definitions; while they may be familiar to you as experienced distillers, these will form the vocabulary for this article. These definitions and regulations primarily apply to United States-based producers, though there are comparable terms and guidelines in most…
Reminder: Guidance on Hand Sanitizer Has Expired
The FDA has withdrawn all three guidance documents which allowed distilleries to produce and distribute hand sanitizer as an emergency measure during the pandemic. Production should have ceased December 31st, 2021, and distribution by March 31st, 2022*. It is also important to be sure you de-register from the FDA’s OTC monograph system if you registered…
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ACSA Increasing Diversity in Distilling with STEPUP Foundation
The Beginning Several years ago, Chris Montana of Du Nord Social Spirits (formerly Du Nord Craft Spirits) walked in the doors of a trade show and realized he was the only person of color in the room. When he became President of the American Craft Spirits Association (ACSA), Montana voiced his concerns over the lack of diversity – due to lack of touch points for…
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When to Hire a Distilling Consultant
Sometimes you don’t know your distillery needs outside help until it’s too late. Here are a few signs it’s time to bring in the experts – and what to look for when hiring a consultant.
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4 Things to Consider When Expanding Your Product Line with RTDs
You’ve seen the statistics and the headlines – RTDs are catching a buzz right now with consumers. If you’re contemplating adding a Ready to Drink (RTD) cocktail to your product lineup, now is the time to do so. Keep reading for our compilation of important considerations for distilleries of any size when expanding into RTDs.
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Distilled Spirits Excise Tax Rates Around the Globe
The Excise Tax: the bane of all distillers’ existence, and part of the reason FIVE x 5 exists! Thoroughly understanding excise tax is essential for the success of a distillery of any size. With partner distilleries in more than 10 countries around the world, the Fx5 team is constantly working to keep abreast of legislative…
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18 Ways “Small” Mistakes Can Cost You Big With The TTB
The TTB: A letter with their name on it in your mailbox is enough to make any distillery owner’s heart skip a beat. If you have a DSP license, the TTB wants to hear from you – whether you’re in production or not. It’s important to cover your ass(ets) with proper tracking, reporting, and filing from the very beginning – or you…
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Cost Accounting 101: Downloadable Resources
Missed our Cost Accounting 101 Webinar? Want to make your distillery more efficient and sustainable by implementing a simple practice? Watch our webinar recording and get up to speed with: a) Why it’s important to implement cost accounting in the early stages of your distillery business b) Why WIP is your most valuable asset c)…
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From DSP to Distillery: A Guide to Getting Your Distillery Off the Ground
New year, new business goals? With the recent permanency of the Federal Excise Tax reduction, now is the perfect time to take your DSP license (or craft spirits concept) to a full-blown distillery operation.That said, turning a passion for craft spirits into a successful distillery is a giant leap. Luckily, you have us to serve as your trusted resource in helping you get on your feet – and way, way…
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