Mark Shilling is chief of operations at Big Thirst Consulting in Austin. A past president of the American Craft Spirits Association, he has been a distiller and consultant for many years. As someone who’s been there, one of his first recommendations to anyone thinking of opening a distillery is to visit as many of them as you can.
He cautions against relying on paid experts to tell you everything you need to know. Visit other distilleries and ask questions, Schilling says—call ahead and introduce yourself. You’ll quickly find that American craft distillers are cooperative and happy to share their knowledge and help fellow distillers. While visiting distilleries, make extensive notes on where they’re located and the size of their production spaces. Once you know what type of distillery you’re planning, what you want to produce, and how much, you should have a solid idea of projections; then it’s time to raise capital. While developing a number, Schilling says, expect to double that.
Clay Smith is operations manager at Moonshine University, the distilling school based in Louisville, Kentucky. What surprises his students most, he says, is how much capital it takes to open a distillery—even a small one. Smith encourages his students to take the time to interview multiple consultants, architects, and other experts for hire to get a solid idea of what the consensus is on realistic budgets. He underlines the importance of consulting with all the experts you will need to complete the project, even before choosing a site for your build.
Broadly, the experts all recommend taking courses and reading as much as possible. Moonshine University, for example, has an extensive list of courses, include a program that’s highly relevant to this stage of the process. More than 40 distillery operators and experts teach the six-day distillery course, exposing attendees to the day-to-day of distillery operations, from the first brick to the finished product.
In addition, the American Craft Spirits Association (ACSA) released The ACSA Guide to Starting and Operating a Distillery e-book this year. The book is a “comprehensive compendium of expert insights detailing all of the tools and techniques that new distilleries need to get their businesses up and running.”
Mark Shilling is chief of operations at Big Thirst Consulting in Austin. A past president of the American Craft Spirits Association, he has been a distiller and consultant for many years. As someone who’s been there, one of his first recommendations to anyone thinking of opening a distillery is to visit as many of them as you can.
He cautions against relying on paid experts to tell you everything you need to know. Visit other distilleries and ask questions, Schilling says—call ahead and introduce yourself. You’ll quickly find that American craft distillers are cooperative and happy to share their knowledge and help fellow distillers. While visiting distilleries, make extensive notes on where they’re located and the size of their production spaces. Once you know what type of distillery you’re planning, what you want to produce, and how much, you should have a solid idea of projections; then it’s time to raise capital. While developing a number, Schilling says, expect to double that.
Clay Smith is operations manager at Moonshine University, the distilling school based in Louisville, Kentucky. What surprises his students most, he says, is how much capital it takes to open a distillery—even a small one. Smith encourages his students to take the time to interview multiple consultants, architects, and other experts for hire to get a solid idea of what the consensus is on realistic budgets. He underlines the importance of consulting with all the experts you will need to complete the project, even before choosing a site for your build.
Broadly, the experts all recommend taking courses and reading as much as possible. Moonshine University, for example, has an extensive list of courses, include a program that’s highly relevant to this stage of the process. More than 40 distillery operators and experts teach the six-day distillery course, exposing attendees to the day-to-day of distillery operations, from the first brick to the finished product.
In addition, the American Craft Spirits Association (ACSA) released The ACSA Guide to Starting and Operating a Distillery e-book this year. The book is a “comprehensive compendium of expert insights detailing all of the tools and techniques that new distilleries need to get their businesses up and running.”
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Choosing a Site
The location of your site is the next critical step. Know your local, state, and federal regulations before purchasing or leasing a site. Experts offer lengthy examples of the risk of not understanding local regulations before beginning the build. Ensure that you won’t get caught up in fighting regulations that may prohibit you from producing spirits in your chosen location.
While exploring sites, you should consider the following: What utilities are available to your site? Electricity? Water? Drainage? What extra safety measures will you have to consider because of the location of your site?
Consider ingress, egress, and turn radius for vehicles. Think about how the equipment will arrive, and how barrels—and perhaps totes—will arrive. Can these delivery vehicles maneuver safely and efficiently? Is there an incline? Will trucks need lift gates? How will pallets move in and out of your production space or warehouse?
Production Space
“Try to design your distillery and, most importantly, your production space with maximum flexibility,” says Schilling at Big Thirst Consulting. “You will most likely need more space than you think initially and want to be set up for growth. If you [think you] need 16,000 square feet, get 30,000 square feet.”
An important question to ask: “How much spirit do you need to keep the lights on?” Schilling says. “When deciding what size equipment and space you need, these questions must be factored in. How much liquid will it take to pay the bills? You must know these answers before you purchase equipment.”
The size and type of equipment will depend on what kind of spirits you want to make, and how much you want to make. These are essential pieces to cement before considering the interior layout of your distillery. Will you be a grain-to-glass distillery? If so, will you be milling your grain, fermenting, and cooking? Using, storing, and processing grain is a significant factor in the decision-making for your layout. Grain handling is a much bigger consideration than most people expect when envisioning a distillery; you’ll need a separate space for that. Safety, as well as efficiency, must be at the forefront of every decision.
Then there’s the piping. Sherrie Moore, former director of whiskey production for Jack Daniels, can talk on that topic for hours. How your piping is laid out will drive your workflow, she says. Consider where you place equipment that needs steam and a chiller or boiler. The placement of floor drains is also an integral part of this planning process.
Here’s an often-overlooked detail: compressed air. Experts recommend that you build in lines instead of hauling an air compressor around the distillery.
In your production space, you will also need good lighting, which must be explosion-rated in certain environments. Will there be a light placed over a fermentor or a boiler? Not all architects or designers may know this is an essential safety standard in the design of a distillery. Your expert for hire should have experience in designing distilleries.
Working (and Playing) in the Space
The next decision will be deciding how your employees will work inside your production space and how you will welcome the public. Before making those choices, the experts strongly recommend that you engage an Americans with Disabilities Act (ADA) specialist.
When planning facilities for your staff and guests, you must abide by ADA guidelines. These guidelines should be only that—guidelines—but it’s more than just bathrooms and parking spaces. Phil Steger, founder of Brother Justus Whiskey Company (Minneapolis), suggests you go one step further.
“l hired a disability design consultant,” Steger says. “They are experts at moving around in wheelchairs or not having sight to help businesses design a space that is truly accessible.” He adds: “Everything should be considered: audio, lighting, and the colors chosen to create a calming, inviting, and inclusive experience for all people in your community.”
The goal is seamless, inconspicuous accessibility. Steger recommends considering these factors in your design phase. “You might find that you have opened your space up to an entire segment of your community that may not have many places local to them that are accessible,” he says. “That means you are reaching into parts of a consumer base that very few others are paying attention to. As small distilleries, we can make strides in that area. We can include and welcome people in that will increase our market reach in a place where the bigs are contesting, because they are not even thinking about those folks.”
Steger says he had some unique perspective when designing the Brother Justus site. Initially, he says, he took a scientific approach instead of an architectural one. It took him two years to find the right spot; he looked at about 50 locations. Finally, he found a space that checked every box.
Would-be distillers should take the time to find the right spot, Steger says. “Rushing in can put a ceiling on your future, so taking your time—although it may feel like the wait is holding you back—it might just allow you to grow better in the future with a space that is perfect for your specific needs.”
Steger says that outside distribution was his model from the beginning. “We intend to be a nationally distributed whiskey brand, so that was a defining factor in our design and planning. And [I] knew it would be our whiskey that we made from grain to glass. Our plan was to be a manufacturing site first and foremost.”
After that initial scientific approach, Steger says he adopted a different one in designing the production space. “I saw it as an artistic vision,” he says, “creating whiskey and the distillery as a total art, an immersive work of art for the consumer.”
There was a mantra that drove a lot of Steger’s decisions when he was designing the production space: “Good whiskey is made by happy distillers.” In the production space at Brother Justus, there are no walls, no piping on the floor, and no trip hazards. All the plumbing and as much electrical as possible went underground. Steam pipes are above and hung from rafters. Steger describes his practical design as art; he points out the steam pipes and how they flow with the rest of the design, artfully following the lines of the entire distillery.
Consider Your Values
The next piece is what Steger refers to as the mental and emotional flow. His desire to take care of his employees, keep them safe, and make their workspace flow is critical to keeping them happy and focused on making excellent whiskey. The less they worry about lugging things around through tight spaces, trip hazards, and inefficient processes, the more they can focus on the art of what they are doing.
Brother Justus also has a visitor area with seating, a bar, and a gift shop. Steger chose not to have a kitchen, explaining that he got into the business of distilling whiskey to do just that—not run a bar or a restaurant. His bar program is also simple; they intentionally keep the cocktail room limited, with a focus on discovering new flavors and tasting their products.
“Don’t be wooed by the initial income from a bar,” he says. “Take the steps to plan financially for a situation where you do not have to depend on a cocktail bar to run your distillery. It can be difficult to change a consumer’s focus when they are tied to an expectation of what you serve and how you serve it.”
During the planning stages, there was also an ethical question at the top of Steger’s mind: “How do we build distillery spaces that are truly accessible to all people?” He suggests considering your values as a company in the design phase, ensuring that your values are incorporated into that design.
Ultimately, get expert advice, and consult with folks who have a background in designing and building distilleries. Take your time planning, searching for a site, and interviewing the right people. Get educated, take courses, read books, meet other distillers and founders, join the community, and use the resources at your disposal. Know your mission, values, and where you want your brand to be in 10 years, and plan for that.
Cheers to your success.
