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The Spirits Business talks about a very sensitive subject, they are brave!!
Distilling under contract is a mysterious, but vital, part of the spirits industry. The Spirits Business lifts the lid on the operations and strategies of leading third-party producers, and explains why many so-called craft brands wouldn't be without them.
The production stories behind hundreds - perhaps thousands - of small, independent spirit brands are often left untold. As the craft renaissance grips the industry, romantic narratives of heritage and provenance are positioned front and centre on spirit labels, while the large-scale companies that actually distil or source the liquid in the bottle stay in the shadows.
Industry members and consumers are now becoming more aware of third-party producers, but their emergence into the public consciousness hasn't exactly been smooth. In recent years, some brands that use contract distillers have come under fire for what has been seen as a lack of transparency. The criticism has stretched from gin to American whiskey and beyond, but whiskey producers from the US have borne the brunt of the backlash.
Undoubtedly, third-party producers and suppliers enable fledgling spirits to hasten their launch date and dedicate valuable resources to their brand and market strategies. But it's not only 'craft' brands that benefit from the service; international drinks groups will often purchase sourced spirits to increase and accelerate their production.
Third-party production is even more pervasive when one considers that it also includes neutral grain spirit (NGS), which is used as the base for countless brand leaders in the white spirits world.
The Spirits Business offers 5 examples of bulk suppliers.
1) MGP Ingredients(USA)
One of the most prominent third -party spirits manufacturers in the world is MGP Ingredients. The company was formed in 1941 as an industrial distiller for the war effort, before moving into beverage alcohol some years later. It now owns two distilleries: one that creates vodka, gin and industrial alcohol, which is based in Atchison, Kansas; and another that distils whiskey, based in Lawrenceburg, Indiana.
2) Sasma (Netherlands)
Sasma is a supplier of base spirits and ready- to- bottle products such as Scotch, Bourbon, cachaça and Tequila for the beverage- alcohol industry. Representing a further aspect of third -party spirits, Sasma does not distil, but instead acts solely as a supplier, sourcing liquid from distilleries, traders and agents.
3) Thames Distillery(UK)
Thames Distillery was founded 21 years ago, it is one of the best-known third -party distillers in the UK, and predominantly produces gin and vodka.
4) Creamy Creation(Netherlands & USA)
Established in 1979, Creamy Creation is the market leader in emulsified beverages, supplying mixable and ready made dairy, soy and coconut -based beverages to the international drinks industry.
5) Alcohols Limited(UK)
Alcohols Limited is the owner of Langley Distillery, a prominent UK gin manufacturer that has more than 300 partners around the world. It produces about 70m bottles for the global gin market annually. The business was established in 1805, while the distillery itself dates back more than 200 years, and has been distilling gin since the early 1900s.
There is even trade shows for this industry. For instance, IBWSS gives supermarkets, retailers, restaurants, wineries, distilleries and other buyers a premier international platform to source bulk wine and spirits and meet private label suppliers. The theme of the 2018 IBWSS San Francisco conferenceis “Bulk up your bottom line”. This is your opportunity to learn all about how you can unlock new opportunities in private label, bulk and contract manufacturing.
Things get more complicated when the bulk suppliers start making their own brands too, as one may wonder about the conflict of interests and competiting against your customers.
Source: The Spirits Business
