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…
TTB Staff Shrinks 13%
According to an article at Wine-Searcher.com, TTB’s Industry Outreach office indicates that TTB had about 520 employees last year, and has about 450 today, due to two rounds of “voluntary resignations”. This reduction in staffing levels has already led to extended permit approval times – average DSP permit approvals are running at 81 days (April…
A (Brief) History of Government Supervision
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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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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3 Ways You’re At Risk Without Distillery Management Software
Recordkeeping As a consultant for distilled spirits, I like to use an Iceberg metaphor to describe your compliance requirements. The tip of the iceberg represents monthly Reports of Operations – these require you to transmit a summary of your operations each month. The bulk of the iceberg lies below the surface, less visible: it represents…
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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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All About Bottling
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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Government Shutdown Possibility Looms -Submit Your Labels, Formulas and Permit Amendments Now
Congress is not expected to pass appropriations bills this month, and a failure to do this will trigger a government shutdown effective on October 1st. Historically, government shutdowns have resulted in TTB pausing their processing of COLA / Label Approvals/Exemptions, Formulas, and Permit Amendments/Applications. Due to this pause, a backlog of submissions is likely to…
The TTB is Tightening Up Enforcement of Permit-Related Regulations
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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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…
5 Signs It’s Time to Adopt a Distillery Management Software
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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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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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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Client Spotlight: Detroit City Distillery
Walking into The Whiskey Factory at Detroit City Distillery was completely unlike my last visit two years ago – with more equipment, more barrels, and more people in a beautiful new event space, it was like a completely different distillery. I was excited to hear about what the team had been up to, and what…
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