Alcohol Excise Tax for Distillers Explained Most distillers don’t feel the weight of excise until that first removal hits. Suddenly there’s a line item that rivals the cost of goods. It’s often a distillery’s second-largest cost, and it catches a lot of operators off guard. Federal alcohol excise tax applies per proof gallon removed from…
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The Iceberg Look at an iceberg from a boat, and you see maybe 10% of it. The other 90% is underwater, hiding just below the surface. TTB compliance works the same way. Your monthly reports are the tip and recordkeeping and daily operations are the mass underneath. It’s ignoring what’s underneath that sinks a distillery,…
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Starting this week, Lot Tracking is available to every distillery running Dx5. Reach out to Customer Success and we’ll get it switched on for you. Here’s the simple version: every lot of raw material you receive, every batch you bottle, and every case you ship now keeps its own identity — from the day it…
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In the vibrant and ever-evolving spirits world, Redmont Vodka stands out not just for its smooth, gluten-free profile, but for the remarkable story it carries behind every bottle. Based in Birmingham, Alabama, Redmont Distilling Co. represents a bold blend of local pride, innovation, and community, all distilled into one exceptional vodka. Founded in 2014, Redmont…
As distilleries scale, barrel storage decisions become more than a warehousing question, they impact inventory accuracy, financial risk, operational efficiency, and long-term brand strategy. In a recent joint webinar, Barrel Scout joined us to explore the realities of palletized barrel storage, the risks that come with it, and how technology-enabled barrel management can turn complexity…
If you run a distillery you already know the importance of understanding of the distilling process, and you also know how quickly things can fall out of sync when members of your staff don’t. Cuts drift, yields shift, compliance data gets messy, and flavor profiles become inconsistent from batch to batch. For growth-stage DSPs distillation…
WHAT THE GOVERNMENT SHUTDOWN MEANS FOR DISTILLERIES Congress’ failure to pass an appropriations bill has triggered a government shutdown effective October 1, 2025, halting operations across several federal agencies, including the Alcohol and Tobacco Tax and Trade Bureau (TTB). So what does this government shut down mean for distilleries? For distilleries, this pause has direct…
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Sometimes, the world of regulatory compliance gets a little too dry, and I find myself reflecting on the past. It’s helpful to understand the background and chain of events that led us to the present. After the fall of Prohibition in 1933, the US Treasury was the regulator/enforcer for distilleries. Their successors in distillery regulation,…
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Distilling is work. Hard, hands-on, all-in work. The slow drip of spirit from copper, the grain crushed under the weight of tradition and ambition, the fire burning under the still. It’s patience and persistence, trial and error, failure and success. It’s in your hands, in the air, in every bottle that bears your name. The…
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Are you a distillery, brewery or winery/cidery in New York State? If so, there is a substantial NY spirits tax credit available to you based on the quantity of product that you bottle each year. Commodity Rebate Cap, gal Max Rebate Amt Effective Bottle COGS Discount Beer, Cider $0.14/gal 500,000 $70,000 355ml: 1.3 cents Wine …
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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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Are you considering starting up a distillery? One of the most daunting tasks is figuring out the equipment that you need. It’s especially challenging if you’re not yet sure what you’re going to produce and how you’re going to produce it. This guide breaks down the different types of equipment according to production operations, so…
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When you think of whiskey, bourbon, or rum, your mind probably jumps to the rich, smoky flavors or that smooth, caramel finish. But behind every great spirit is a barrel that does a lot of the heavy lifting. Sure, distillers craft the liquid, but it’s the wood that transforms it into something magical. Let’s dig…
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The bottling department of your distillery is a paradox: your biggest value-add is putting corks in glass, but bottling carries a lot of technical and regulatory challenges. Let’s go through these challenges and examine some solutions. When I refer to a bottle, I’m speaking of a standard 750mL filled with 80 proof spirit. Technical Bottling…
“From Bond”, “In Bond”, “Bonded” … it can seem like the regulations are fixated on the concept. But what does it all mean? First off, some background. In the US, the Federal Government’s Excise Tax attaches to spirits the instant they come into existence (when vapor condenses to liquid). However, to allow proprietors flexibility in…
What is AlcoDens LQ? AlcoDens LQ is a blending & gauging calculator made by Katmar Software. It has all the functionality of the calculators built into DISTILL x 5 and Whiskey Systems, plus additional functionality and support for spirits blends containing sugar. There is no business relationship between FIVE x 5 and Katmar Software; we just think…
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A bond is a special kind of insurance policy which has three parties, instead of two. If you think about home or car insurance, you (the policyholder) pay the insurance company a premium, and in the event of a financial loss, the insurance company makes you whole. A bond (or surety bond) is also an…
Many distilleries are involved in sending or receiving Bottled Spirit via Transfer in Bond. What they may not realize is that they’re running afoul of TTB regulations which have changed multiple times in recent years. This post will summarize the past and current regulations. The Past Prior to 2018, bottled spirits could not be transferred…
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For some important background, make sure you’ve read the first blog post in this series, COGS – Why You Should Care and How to Track It. This post’s intended audience is distillery management and accountants/CFOs/controllers. First and foremost, we should define the goal of this exercise. What we’re aiming for is GAAP-compliant books that can…
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There are two things we all can use more of: time & money. So when you come across an idea that: Well, that’s worth something. Here’s just such an idea: While at the American Distilling Institute trade show in Las Vegas I met Tyler Derheim from FIVE x 5 Solutions. In addition to working with…
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Cost of Goods Sold (COGS) is an accounting metric used by manufacturers and other businesses to weigh the direct cost of making a product. COGS is broadly split into three categories: materials/supplies, overhead and labor. DISTILL x 5 and Whiskey Systems have built-in functionality to track Material COGS from grain receipt through to production, storage…
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As a rule, the Alcohol & Tobacco Tax & Trade Bureau (TTB) would prefer to work with industry members to guide them into compliance, rather than levying large fines or shutting businesses down. In fact, TTB even has a Voluntary Disclosure program that can help you minimize business disruption and cost, should you find yourself…
A conversation with Chris Farmand, CEO of Small Batch Standard Running a distillery is no easy feat, it requires detailed planning, hard work, and dedication to make it successful. While there are certain goals that you may be focused on, such as building up inventory, aging your product, and developing a brand, profitability is a…
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We have a new position open on our team! We are looking for a Training & Education Content Specialist with the below skill set requirements. 4+ years in software sales, customer service, success, or support, preferably for SaaS OR, a bachelor degree in Marketing or Education and 2 years of same experience. AND; 1+ year…
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In the age of fast-paced marketing, where today’s tactics are already yesterday’s news by the time you’ve implemented them, there is still one truth that remains; brand storytelling is the most compelling way for you to build your distillery’s brand and connect with your audience. There is a reason the most successful companies continue to…
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All Distilled Spirits proprietors need to know about two substantial changes in in TTB Enforcement standing policy. 1. Change in Ownership Reporting If you have a change in ownership of your business, you must report that change to TTB via a Permit Amendment within 30 days. Reportable changes include: change of controlling interest, change of 10%+…
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Meet Tyler Derheim, Fx5’s in-house consultant, who uses his expertise to help distilleries of all sizes make it easier to make great things. Tyler first entered the regulated beverage industry in 2010, when he started working harvest and crush at a midsize winery in Slovenia. After returning to California in 2017 he joined a startup…
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One of the many advantages of working with FIVE x 5 Solutions is that we’re tapped in to what’s happening in the world of distilling. During our usual monitoring, we’ve noticed an uptick in enforcement actions by the TTB as more distilleries are experiencing a TTB audit. With pandemic restrictions easing, it makes sense that…
Since every Distilled Spirits Plant is unique in some way, the question of when to expand operations ultimately depends on the proprietor and their business model. With that said, there are some clear indicators that you should consider expansion: If you’d like to learn more about how to expand your operations, you can reach out…
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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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The TTB is charged with two primary missions: protect revenue and protect consumer. Because of this focus, they are very concerned with alcohol content measurement in distilled spirits plants – an underproof product shortchanges the consumer, while an overproof product shortchanges the government its excise tax; enter proofing and gauging. Accordingly, 27 CFR has strict…
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If you’ve ever used TTB’s Online Services, like COLAs Online or Formulas Online, you’ve probably found yourself frustrated with the unintuitive interface, unfamiliar (or easily misunderstood) standards, and arcane terminology. But that’s only the beginning of possible frustrations – even after wading through the appropriate service, it can feel like TTB Specialists reject submissions for…
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Does Your Excise Reporting Pass the Quality Test? Excise Tax Returns are deceptively simple if your operations are. While most of a DSP’s reporting requirements are denominated in proof gallons or wine gallons, TTB Form 5000.24sm only asks you for dollars and cents. The form is so simple that other industries such as Tobacco,…
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Looking for some quick and easy ways to improve your DSP operations? Here are some process improvements that you can implement to save time and money, while reducing your risk of noncompliance. If you’d like help with CFR requirements or how to implement improvements for your DSP operations we’re here to help. Reach out to…
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How do you know when the time has come and your distillery needs distillery management software? You’ve received your license— Many distilleries don’t think they need software early on in their development. However, in the United States the TTB requires reporting as soon as a license is issued, whether you are producing or not. Having…
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FIVE x 5 Solutions has partnered with Whiskey Capital Secured Financing Fund to bring non-traditional distillery funding to our clients. Whiskey Capital specifically provides funding for American Whiskey distilleries who have capital tied up in the whiskey aging in their rack houses. Fx5 Solutions CEO Caroline Calhoun recently sat down with Whiskey Capital Secured Financing…
Time is the most valuable resource any of us has. With a finite amount to use, how we choose to spend our time is the most important decision we make every day. Couple that with the fact that most modern humans deal with time famine – a universal feeling of having too much to do…
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We recently checked in with Jeremy DeWitt, Assistant Distillery Manager at 10th Mountain Whiskey & Spirit Co., about how things have been going with Whiskey Systems since the beginning, and how they have been since they switched back to Whiskey Systems after a brief hiatus. FIVE x 5: Tell us more about your journey into…
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The most critical thing distilleries must track is spirit production, on which tax (duty) must be paid. Consumers enjoy distilled spirits, and so do governments – if only because of the revenue gained from alcohol production! In the United Kingdom, HMRC oversees the license and oversight of distilled spirits producers and requires distilleries report and…
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