For several years now I have heard about the iStill and more recently the Genio still. I have made it a point in my various Workshops to stress that these devices have been made for “dummies” – for people who lack the scientific understanding to comprehend Raoult’s Law and fractional distillation. The people behind the iStill and Genio still recognized that there were “dummies” trying to enter the craft distilling playing field. They recognized that “dummies” will buy a still if all that is required is to turn on the green switch and hit GO on the touchscreen. Brilliant! And I am sure that a good many of these idiot-proof stills have been sold around the world. My hat goes off to the folks behind Genio and iStill for sensing an opportunity and then monetizing it.

During a recent start-up in southern BC, I had the opportunity to come face to face with a Genio still. I read and re-read the skimpy instruction pages. I watched YouTube videos which all seemed to feature the same American bullshit artist crowing about how distillation is so simple. It soon became clear that the operator is required to add a fermented liquid to the still, taking care to ensure the liquid is less than 40% alcohol. The operator is required to input the temperature at which the machine would switch from flowing distillate down hose #1 (heads) to flowing distillate down hose #2 (hearts). The operator is required to input the alcohol strength of the liquid left in the still pot at the end of the process.

During the attempted distillation run, a water valve was mistakenly opened which allowed water to trickle into the still pot as the pot was heating. This ended up creating massive pressure inside the still because the valves governing flow out of the still were told to remain closed by the computer chip algorithm. Moreover, the pot temperature sensor malfunctioned. The digital display was showing 65C, but what I was not aware of was that the temperature was well in excess of that. Finally, the algorithm showed a warning message that there was high pressure in the still pot. When I cracked one of the closure bolts on the lid, it soon became clear that yes… there was massive pressure in the pot. I was now standing beside a veritable “bomb”. There have been issues over the past number of years where stills have exploded. In one case in Tennessee an explosion killed three people. In a more recent case in Newfoundland, nobody was killed but the provincial government has blocked any further craft distillery openings as a result.

After allowing the still to cool down, I was able to remove some liquid from the pot. I then proceeded to run the still again. Part way through the algorithm, the still suddenly shut down due to low water pressure. Literally three seconds prior to this error massage there had been plenty of water pressure to the condenser. Apparently another sensor had malfunctioned. I had to hit the green button and “re-boot” the system. The algorithm then had to go through all of its steps again. On this attempt, the algorithm did execute properly and I was able to obtain 96.5% alcohol.

This experience has left me shaken and very pissed off. All of my warnings in Workshops about these computer controlled, idiot-proof devices have now taken on a real dimension. Distillation is an atmospheric process. There should be no valves that prevent the escape of vapors from the still. The degree of heating should be operator controlled, not computer controlled. The purity of the distillate should be a function of the number of plates in the still column and the amount of operator-applied steam energy.

In my Workshops, I make it very clear that at every craft brewery there will be people who are either very skilled home brewers and/or people who have attended a brewing college somewhere. Equipment makers supplying the beer industry have made NO effort to control the brewing process by way of a computer algorithm. Brewing is completely reliant on operator skill.

Somehow, people entering the craft distilling sector have decided that they are above having to learn anything about distillation, fermentation or basic math. Is it just me or is society getting lazier? Have people given up wanting to learn new skills? Have we regressed to the point where people just want to flip a green switch and hit GO?

It is my prediction that somebody, somewhere is going to get seriously injured when running one of these computer chip stills. This tragic event when it happens will be a major setback for the image of craft distilling.

You cannot take the human element (taste and smell) out of distillation. You cannot remove the atmospheric parameter from distilling.

At the risk of offending readers of this post, let me conclude by saying that if you are too lazy to learn the science behind distillation; if you lack the ability to learn new scientific principles; if you absolutely cannot comprehend Raoult’s Law; if you think that taking a Workshop is a waste of time; if you think that distilling is as simple as hitting GO on a touchscreen, then please, I beg of you – do not get involved in craft distilling.

There are 11 global corporations that control the worldwide alcohol trade. Craft distilling has managed to scalp maybe 5% of the market share over the past 10 years. Craft is a fragile industry. Consumers are very prone to reverting back to their “go-to” commercial brand of beverage alcohol at the first hint that the craft stuff they have bought does not meet their taste expectations. Now with the economy slowing and mortgage rates rising, the consumer does not feel as wealthy and secure as they once did. Less secure consumers are cost conscious. Suddenly the consumer realizes they can buy 1 bottle of craft Gin or 2 bottles of Beefeater Gin.

The reason craft has failed to capture a commanding market share is quality. People at the craft level think that if they make it, people will automatically buy it. This is a flawed attitude. Making beverage alcohol is not easy. Even a humble bottle of Jack Daniels is a carefully controlled blend of multiple ages of barreled distillate. A humble bottle of Crown Royal whisky is a blend of 5 different distillates.

I reckon that maybe 30% of craft distillers have figured out the science and the art of making a solidly good product. But these success stories are facing a constant headwind from all the other operators who are making shoddy product.

Until such time as people start reading and learning about the science of mashing, enzymes, yeast, fermentation, and fractional distillation – the craft distilling industry is going to continue blundering along at its single digit market share. If you are reading this blog and if you are among the 30% who understand the science, maybe it is time to start applying verbal and written pressure to the 70% who are providing headwinds to your success. Enough is enough. This industry is now over 10 years old, but has failed to make a dent in the bottom line of the big commercial distillers financial statements. And now with computer controlled distillation devices that encourage even more untrained people to enter the alcohol business, I fail to see how things get better from here. This is all truly sad, in my opinion.

Bacteria in a distillery can quickly proliferate and become a serious problem. As a real life case in point, consider the distiller who bought some pails of grape juice only to find they were contaminated. The juice was dumped and the pails tossed in a corner. Several weeks later, some fermented wort from the distiller’s large fermenter tank was pumped into one of these empty pails for planned use a day later. The next day came, and so did a surprise. The pail of wort had transformed itself into vinegar overnight. Evidently, these empty pails had acetobacter bacteria alive in them. Adding the wort and introducing some oxygen during the liquid transfer created ideal conditions for acetobacter to thrive. Acetobacter will oxidize ethanol (and leave higher molecular chain alcohols alone) into acetic acid. When the spoiled wort was distilled in a small 20 L A’Lambic still, what came off the still was higher alcohols only and no ethanol. This lack of ethanol confirmed that acetobacter was the culprit. So, the bottom line is, do not keep empty pails laying around that can harbor bacteria. If you need it, keep it and keep it clean. If you don’t need it, throw it away. Distillery cleanliness is crucial. A distiller shares his distillery with bacteria. The bacteria can be kept in check by regular and thorough cleaning and by ridding the premises of items like unwanted pails where bacteria will thrive.

My sage advice to craft distillers is – know the market. I am seeing too much evidence of late that craft distillers fancy themselves to be part of the “high end” of the market spectrum. The concept of “high end” only exists because of marketing, which requires deep pockets. I have yet to meet a craft distiller whose pockets reach down to the ankles.

First off, why do humans drink a liquid that alters mood and physical motor skills? The answer is the alcohol “drug” helps us deal with the pressures of daily survival. It eases the stress, it helps us relax. Alcohol in the short term increases our energy levels. Millions of years ago, being able to deal with the stress of survival was important to our primate ancestors. Increased energy helped primates find food quicker than competitors. Geneticists claim that a single point DNA mutation millions of years ago allowed some of our primate ancestors to metabolize alcohol. This ability is with us today in the form of the alcohol dehydrogenase enzyme in our livers. Over time, the primate species who did not acquire this DNA mutation died off because of their inability to digest alcohol. The surviving primates were homo sapiens, from whence we derive.

The key take-away is – we do not drink for show, for glamor or for glitz. People of all socioeconomic means drink beverage alcohol. Drinking is embedded in our DNA structure. It is part of a our basal behavior. Drinking is not limited by social status or income.

Have you noticed that manufacturers of goods and providers of services have a predisposition to segregate the marketplace into high end, middle and low end categories? Take a look around. Have you driven past a BMW dealership lately? Have you driven past a Chev or Ford dealer? Have you driven past a corner car lot that is selling well-worn, used vehicles? Pick any consumer product and you will see this same upper, middle and lower strata model being applied.

Many of the consumer products we buy are extensions of our personalities. They make a statement. They speak to self actualization. American psychologist Abraham Maslow summed this observation up in his Maslow Hierarchy of Needs, which resembles a triangle. At the bottom of his triangle, we all need food, clothing and shelter. As we move up the triangle we start to want items that demonstrate to the world that we have attained success.

This upward progression in the triangle is what has prompted makers of goods and providers of services to advance the concept of high end, middle strata and low end. Don’t buy that Chevy car. Buy a BMW because it makes a statement about who you are. Don’t buy a cheap laptop. Buy one with more bells and whistles on it, Maybe one that has a piece of fruit as its corporate logo. Don’t buy your next set of eyeglass frames at a department store. Get fancy designer frames instead.

To a craft distiller placing products in the marketplace, it seems only natural to apply this stratification model. It seems only natural that craft distillers would want to target the upper part of the market spectrum. Craft distillers put a lot of work and effort into their products. They grind their own grain and spend hours on a hard concrete floor watching liquid drip from a still. Surely this deserves recognition and monetary reward? I have yet to meet a craft distiller who regards his or her products as only being suitable for the lower part of the consumer spectrum.

But, the reality is, when it comes to alcoholic beverages, the market stratification effort runs into trouble. Alcoholic beverage is difficult to fit into the Maslow Hierarchy. We do not suddenly take up drinking alcohol as we ascend through a particular level of the Maslow Hierarchy. Alcohol consumption is tied to our very basic needs, lower in the triangle. People consume alcohol today for the same basic reasons that existed back in the days of tree-swinging primates: to energize, to relax, and to cope. This list can be expanded to the modern era to include drinking to reward and drinking to commiserate.

Despite this reasoning, alcohol makers like to speak of “premiumization” as they try to apply the market stratification model. Certain brand names in the portfolios of big alcohol makers are deemed to be premium brands. The premium issue is complicated by the fact that distilled alcohol, even at 40% abv, is a bit tough to navigate for most people. So, they end up diluting their alcohol with water, soda, juice and so on. Or, they fabricate the alcohol into cocktail drinks. If the distilled alcohol did have a unique taste profile, mixing it will quickly erase that profile. So, why buy premium then?

To counter this mixing behavior, the big alcohol makers have resorted to spending huge money on advertising to create and reinforce the idea that certain brands are more upscale and premium than others. In my many Workshops over the past 6 years, I have done blind taste tests on vodka, where I have diluted the vodkas to 30% to alleviate taste bud fatigue. You would be inclined to think that Grey Goose would have come out on top of these taste tests. But, shockingly, it did not. Vodka is nothing more than ethanol created using a continuously-run distilling process such that the distillate comes off the still at 96% abv. The ethanol is then diluted to 40% abv with water and bottled. What makes Grey Goose high end is its advertising and imagery. Grey Goose does not advertise in 4×4 Off-Roading type magazines, nor does it advertise in blue-collar Hunting and Fishing magazines. Rather, Grey Goose advertises in Conde Nast Traveler and other upscale such mags. Grey Goose will advertise in bus shelters in downtown Vancouver where people of means and disposable income can be found. Grey Goose uses a frosted bottle and screened labels to differentiate itself from vodka in plain glass bottles with paper labels. Grey Goose then assigns a higher price point to itself to fully drive home the fact that it is premium. The cost of creating this high-end image is certainly not cheap. But, to parent company Bacardi, who makes 400 million bottles of alcohol each year, the Grey Goose expenses can be offset across the entire Bacardi family of brands.

I have seen the same model applied to whisky as well. Macallan Scotch is good and I enjoy it. I also enjoy Aberlour Scotch. These two distilleries are located not 3 miles apart, on opposite sides of the River Spey near Craigellachie. The Aberlour visit is simple and straightforward. Mind the stairs and don’t trip on that water hose snaking across the floor. The Macallan visit is akin to a Disney experience. The price tag for their visitor center was a staggering 500 million Pounds. One is left with the distinct conclusion that Macallan is a high end brand. Its all in the imagery. It is all in the differentiation from the brand made 3 miles up the river. It is all about the money.

I am seeing overwhelming evidence of struggle and anguish in the craft distilling segment of the market. Craft distillers seem prone to assigning a high price point to their products with the reasoning that craft alcohol automatically has a place in the upper end of the market strata. Craft distillers are quick to emphasize that their products are grain to glass and therefore deserve a higher price point. I continue to shake my head in disbelief at this logic. The ethanol factory in France that makes the distillate for Grey Goose grinds its own grain, mashes it, ferments it, and distills it. Aberlour Distillery along the River Spey does likewise. Therefore, these brand names are also grain to glass. Perhaps if craft distillers were to advertise in select venues and through carefully chosen magazines, their argument would be better accepted. But – herein is the problem. Craft distillers do not have the money to advertise. In the world of whisky, there are some brand names that have released well-aged expressions of between 25 and 30 years old. I will agree all day long that these products are deserving of a place in the upper strata layer. Maybe one day when a craft distiller is sitting on an inventory of 20 year old product, the argument of high end can be made. But, not here. Not now.

Attempts to advance the grain to glass argument are further being hampered by technology. Take the case of the ethanol factory in Unity, Saskatchewan. It generates tens of thousands of liters of ethanol each week, most of it destined for gasoline blending. But, more and more, this distillate is finding its way into craft distilling circles. That craft distilled vodka you bought last week, could well be nothing more than ethanol from Unity, SK blended with water and placed in a decent-looking bottle. As makers of whisky and rum and tequila distillates embrace technology and strive for greater efficiency and greater output, the world finds itself with a surplus of alcohol. Hollywood movie stars have been alerted to this. A well-known actor (let’s call him George), with a few phone calls, can soon have his own (unaged) tequila-blanco brand made for him. Because he is so well known, and because he has money to promote his brand, it very quickly becomes associated with the “high end” market strata and retails for $74. The same distillery that made the distillate has also made distillate for cheaper tequila brands. The local craft distiller with no money for marketing is being shoved aside in his efforts to target the “high end” with a high priced product. The cry of “grain to glass” is becoming a muffled voice in the wilderness.

What has prompted me to write this pithy post, is the fact that craft distillers need to collectively wake up and assess reality. To position an alcoholic beverage in the upper part of the market strata requires a famous name, or money or both. To hold a product aloft in the upper strata will also require repeated infusions of marketing and advertising dollars. An upper strata, “high end”, product is only upper end because stardom, advertising, money, and imagery say it is.

Craft distillers need to get their prices down in alignment to what the big commercial players charge. There is no shame in targeting the other parts of the market strata. If a craft distiller is unwilling to lower prices, the craft road may soon get a lot bumpier for that operator.

For craft distillers just about to start their journey, my advice is to avoid the temptation to reach for the upper strata. Leave the upper strata to the movie stars and to the big players who have the big marketing budgets. Focus instead on creating products for the average person that are unique, mixable and drinkable.

The question then arises, should a person even bother making alcohol? In my experiences, craft distillers seem to be getting into the business for the ego thrill of making liquid dribble off a still. The hard reality is, the world is swimming in alcohol. Why make more of the stuff? Think about what could be accomplished by buying distillate from the big players. What could be blended, created, and concocted from that purchased distillate? Think about approaching an existing craft distiller and having product made on a fee for service basis.

As I explained to a start-up craft distiller recently, the craft “thing” was an economic bubble fueled by low interest rates and cheap borrowing costs. If I plot the monthly Workshop attendance numbers going back to 2014, the shape of teh curve is a bubble. Far too many people chased the bubble because they wanted to “make booze”. These people gave little or no thought to their target market and to brand image. They overspent and under-planned. They have failed to let go of the “grain to glass” notion. They have failed to let go of the idea their products deserve to be regarded as “high end”. They refuse to budge off the position that their products are worth $50-$60 per bottle.

I fear a wash-out is nigh for craft distillers. I am aware of several craft distilleries in British Columbia that have shuttered their doors in the past 6 months. I am aware of several start-up stories in other locales that can’t seem to find investment dollars to get their projects moving. I am aware of many small distillers that remain open, but the untold secret is that there is no money being made. Perhaps the term “zombie distillery” applies?

The consumer today drinks because that urge is encoded in our DNA. We drink to relax, to reward, to commiserate. Most people mix their alcohol to make it more palatable and more enjoyable. People want value for money. To some people, this means they seek out a premium brand expression. They do not know (don’t care?) that the premium brand is all about marketing and imagery. But, to the vast majority of people, value for money means something priced affordably that mixes well, and tastes good. As we move ever closer to a post-Covid world, craft distillers would do well to re-think their entire strategy. Leave the “high end” reasoning out of the equation. Focus on the average person and their beverage alcohol needs and wants. Strive to know the market.