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…
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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Are you reporting your Imported Spirit (e.g. Agave, Tequila, Irish Whiskey) correctly?
Regulations require you to track and report your bulk Imported Spirit separately from your domestic spirit. This applies to spirit held in the Storage liquid account as well as the Processing account. We’ll cover the scenarios and ‘gotchas’ so that you can stay on TTB’s good side. And, be aware that we’re not going to…
The Business Case for Consulting Services
Expertise. FIVE x 5 Consulting Services has years of experience helping our customers solve their business needs while remaining compliant in a highly-regulated industry. Since we’re the #1 provider of Distillery Management software, we’re well-positioned to deliver the right solutions at the right price, and without wasting your time. Objectivity. Hiring an outsider gives you…
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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: The Hydrometer/Thermometer Method
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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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…
Funding Craft Distilleries: A Conversation with Whiskey Capital’s John Shumate
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…
The Value of Time: Spend Yours the Right Way (on Your Distillery!)
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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Why Invest in a Distillery Management Software?
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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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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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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Client Spotlight: Distillery 031
Before talking to Andrew Rall, founder and distiller at Distillery 031 in Durban, South Africa, we did a quick Google search to figure out the time difference. We caught him at the tail end of his day to get to know the distillery’s journey, the challenges they were faced with starting up, as well as…
