Happy Holidays from ACSA

ACSA Wishes Warm Season's Greetings to You and Yours!

Tax Reform Brings a Big Win for Craft Distilleries

Today, the President signed into law the Tax Cuts and Jobs Act of 2017, legislation that contains provisions that will dramatically alter the landscape for craft spirits producers. Late Friday of last week, the House and Senate agreed to that final bill, with the full U.S. House passing it 227-203 Tuesday afternoon. The Senate passed the bill 51-48 in the early morning hours of Wednesday. The House passed it again on Wednesday due to budget points of order. Once enrolled, it then reached the President's desk.

Fortunately for the craft distilling industry, the U.S. Congress included the Craft Beverage Modernization and Tax Reform Act as part of the larger tax overhaul plan. The passage marks the first major legislation in modern history that will directly support and grow America’s approximate 1,600 small craft distillers. The legislation reduces the Federal Excise Tax (FET) from $13.50 to $2.70 per gallon for the first 100,000 proof gallons. The tax is reduced for calendar years 2018 and 2019. The legislation has been ACSA’s top legislative priority, and its passage marks a major victory for the distilled spirits industry. ACSA and other beer, wine, and spirits groups are committed to coming back to the Congress and making this permanent.

ACSA has been working to achieve parity with our counterparts in the beer and wine industry for many years. That need was clear as the former tax policy allowed for a reduced excise tax rate for small producers of beer and wine while leaving craft distillers at the same rate as major corporate producers. We argued for a level playing field. And, as of today, we succeeded.

Beginning with just one Congressional sponsor a number of years ago, in the last two Congresses’, legislation to reduce the FET has proven very popular. This year, over 300 Members of Congress co-sponsored the legislation while in the Senate, over 50 co-sponsored similar legislation.

Getting in the tax bill, however, was not easy. As you read in news reports, many opposed the bill and it moved very quickly through the Congress. We can thank Senator Ron Wyden (D-OR), Senator Roy Blunt (R-MO), and Congressman Erik Paulsen (MN-03) for their long-standing support of the bill. We can further thank Senator Rob Portman (R-OH) for his work to have this included in the Senate version of tax reform.

ACSA looks forward to a smooth implementation and is already working with TTB to ensure an easy transition to the new tax rate.

8 Trends for a Spirited New Year

Jeff Cioletti, ACSA Contributing Writer

It’s hard to believe that yet another year is behind us. If 2017 proved anything, it’s that these are indeed exciting times to be in the craft spirits business. And that’s going to be doubly true in 2018. Here’s a look at some of the big spirits trends to keep an eye on in the new year.

Brandy breaks through As consumers get more adventurous and their tastes expand, expect them to explore a bit outside their familiar spirits categories. Various mainstream media outlets ran more than a few stories on the renaissance in American brandy in 2017. In 2018, more U.S.-based craft producers will be experimenting with different types of fruit-based distilling, beyond the familiar styles. For instance, we’re already starting to see American producers make spirits like the Eastern Europe eaux de vie known as rakia and slivovitz, as well as traditional German schnaps.
“Foraging” will be a big buzz word. Gin producers increasingly are talking about “terroir,” a term that, until recently, was quite foreign to any category that wasn’t wine. A key facet of gin terroir is sourcing botanicals that capture the flavor and aroma of distillers’ local regions. And many are taking that a step further by crafting special releases made with herbs, roots, and spices that their teams foraged in nearby forests.
Craft Spirits Weeks Every state in the U.S. now has at least one craft beer week. Now, the concept is gaining steam in the craft distilling world, with not only a National Craft Spirits Week statewide weeks in places like Missouri, as well as city-based efforts in places like Philadelphia (the birthplace of the craft beer week, by the way). Expect the number of cities and states launching official craft spirits weeks to increase manifold in 2018.
Craft Spirits Trails Similarly, state, local, and regional visitors’ bureaus have discovered that efforts to map and promote their areas’ craft distilling scenes are a good way to boost tourism. The new year likely will see the launch of several new craft spirits trails across the country, as well as the expansion of many of the existing trails as more distilleries open up in their necks of the woods.
Agave spirits Since tequila can’t be called tequila if it’s made outside of Jalisco, Mexico, agave-based spirits have had a minimal presence in the portfolios of American craft spirits producers. However, as tequila consumption explodes, consumers are getting savvier about the base ingredient—so much so, they’re ready to seek out agave-based beverages that don’t bear the tequila (or mezcal) label and that’s creating an opportunity for U.S. distillers. In 2018, we’ll witness the emergence of a small American agave segment.
Single Malt is the new rye. A couple of years ago, the media and industry analysts declared that rye was the new bourbon. And, with year-on-year volume growth well into the double digits, they weren’t wrong. Now, American single malts have come into their own and, in 2018, we’ll see more of those whiskeys come of age and hit the market, firmly establishing American single malt as a segment to be reckoned with.
Tiki Hybrids The re-emergence of the tiki bar scene has put wind back in rum’s sales. But rum’s not the only game in town when it comes to Polynesian-inspired cocktails. Bartenders are thinking out-of-the-box and merging drinking traditions that are (almost literally) poles apart. For instance, in 2017, House Spirits introduced the “Viking Tiki” concept, incorporating the Portland, Oregon distillery’s Scandinavian-influenced Krogstad Aquavit into the traditionally tropical drinks. The time has come for further flights of fancy, far afield from the obvious.
Bloody Beyond Vodka Speaking of exploration beyond the obvious, the classic brunch beverage has become a favorite palate for creative expression among bartenders. And that not only includes offbeat mixtures and food ingredients—fried chicken, anyone?—but spirits that add more complexity to the tomato-based cocktail than vodka. Gin, aquavit, agave spirits and even whiskey are finding their way into the recipes of these post-modern interpretations of the savory drink. And it looks like bartenders will be taking us in even more exciting directions in 2018.

Celebrate the Holidays with These Cocktail Recipes

We followed up with a few of the judges that participated in ACSA's Spirits Judging Competition and asked them what their favorite winter cocktails are! If you need some inspiration for your holiday parties, we've got you covered. Also, don't forget to register for the 5th Annual Distillers Convention and Vendor Trade Show where the medalists of the Judging of the American Craft Spirits will be announced.

Anna Archibald, Cocktail and Spirits Writer

"Old Tom Fashioned"

2 oz Ransom Old Tom Gin
.5 oz simple syrup (1:1)
Dash Angostura bitters
Dash orange bitters

Garnish: orange slice

Glass: rocks

Method: In a rocks glass filled with one large ice cube, add all ingredients and stir until chilled. Garnish with an orange slice, and enjoy!

Cappie Peete, Beverage Director, AC Restaurants

"Here’s a cocktail we recently put on at Beasley’s (our Fried Chicken and Champagne restaurant). I figure since I was on the gin panel it’s fitting for me to submit a gin cocktail. It’s our play on a Spiced Pear Collins."

2 oz. Gin
1.5 oz. Spiced pear puree (has rosemary in it)
3/4 oz. Cinnamon/Rosemary/Clove Syrup
1/2 oz. Lemon juice
1 dash Angostura bitters
2 oz. Wheat beer (We use Fullsteam Honey Wheat)

Shake all ingredients except beer with ice and strain into Collins glass filled with ice. Top with beer.

Ryan Lotz, Beverage Director, Bar Mezzana

"My favorite for the winter is actually super easy and very doable at home. I just call it my House Old Fashioned for the season."

"House Old Fashioned"

1 oz aged rum
1 oz brandy
0.25 oz demerara syrup
2 dashes Angostura or any aromatic bitter
2 dashes orange bitters

Build over ice and stir to combine.

Garnish with orange and lemon twists.

Lisa Wicker, Distiller, Saints & Monsters LLC

"My son-in-law just whipped up my new favorite outdoor winter activity cocktail. (He is the executive chef at Maker's Mark.) My daughter and I were headed to the Bardstown tree lighting, and needed a little something to keep warm. He did a Bourbon twist on hot buttered rum. My son, Capitol Hill guy by day, hosts a cocktail program, "Speaking Easy Podcast." I asked him for his Hot Buttered Rum recipe to adapt to my son-in-laws version. I can make whiskey but leave the cocktails to the family."

2 oz aged rum or bourbon
5 oz of almost boiling water
1 T hot butter batter
grated nutmeg

Whisk together, grate nutmeg on top.

Hot butter batter: Combine 1 stick unsalted butter with 1/4 C dark brown sugar and 1 t grated nutmeg. Let the butter come to room temperature and stir in the sugar and nutmeg until well-mixed. Refrigerate for storage.

Taneka + Johnny, Cocktail Bandits

"Winter Blossom cocktail represents the cold weather we experienced in DC but also the new relationships formed during the judging process. Taneka had the pleasure of tasting upwards of 60 different gins while Johnny tasted a variety of cordials ranging from orange liqueurs to distilled agave spirits."

"Winter Blossom"

1 oz of Barr Hill Gin
.50 oz of Pamplemousse Liqueur
1 oz of Alley Twenty Six Tonic
.50 oz of Lime Juice

Garnish with grapefruit peel

Add gin, lime juice, liqueur and tonic to mixing tin full of ice. Shake purposefully. Strain over ice in chilled glass. Place garnish. Enjoy.

"The Orange Garden"

1.5 oz of Tequila
.5 oz of Ancho Reyes Verde
.25 oz of lime juice
.5 oz of agave
1 oz of orange juice

Garnish with cilantro

Add tequila, Ancho Reyes Verde, lime juice, orange juice and agave to mixing tin full of ice. Shake passionately. Strain over ice in chilled glass. Add cilantro garnish. Enjoy.

Help Us Bridge the Future in Pittsburgh

The future is bright for craft spirits. The Craft Spirits Data Project (c) 2017, reported significant growth in our industry. Now, in 2018, we expect distilleries to save serious cash with a reduction of the Federal Excise Tax. Celebrate the success of craft distillers and help make the 5th year of the American Craft Spirits Association extraordinary!

Invest in yourself and in your distillery by attending the 5th annual Distillers Convention and Vendor Trade Show. We will offer stellar education programs , networking opportunities, and a lot of fun to Pittsburgh, PA.

When: March 4-6, 2018

Where: The Wyndham Grand Pittsburgh Downtown Hotel 600 Commonwealth Place, Pittsburgh PA, 15222

Spotlight on a Member of the ACSA Family:

Perfecting Your Craft

Rye for Americans

Michael Dawson, Content Manager

Rye whiskey has deep roots in the United States, with a history that dates back to the colonial days. A combination of changing tastes and Prohibition almost killed it off, but it’s enjoying a bit of a renaissance as more new distillers and craft spirit enthusiasts rediscover its charms. Here’s a quick primer on different styles of whiskey that use rye and which grains and malts are available to distillers:

Simpsons Crystal Rye Malt

Rye whiskeys can be found as a traditional straight rye (at least 51% rye in the mashbill), a recreation of the extinct rye whiskeys of Maryland and Pennsylvania, or a modern craft whiskey. 100% rye whiskeys are dense, leggy and oily drams redolent of spice and vegetation with underpinnings of almond and confection - “the Islay whiskys of America.” Like aggressively smoky single malts, these are challenging but rewarding sippers that showcase the powerful aromatics and texture of the grain; they’re also great in a well-made cocktail.

Rye is also an important component of bourbon whiskey. As a flavoring grain in a bourbon mashbill, rye masks some of the candy-corn, caramel sweetness of the corn fraction and brings in spicy, floral, and minty notes. Less sweet than corn and not nearly as mild as wheat, it adds to the perception of dryness as well as complexity to the flavor and nose. At a proportion of 10% or less, its effect will be subtle; more pronounced at 15-20%, and stand out in a very high-rye (30% or so) bourbon formulation.

Chemical analyses have shown that a rye and bourbon produced at the same distillery will be more alike than they are to a spirit with an equivalent mashbill produced at a different distillery. So while rye will have an impact on flavor, provenance and process are still key to the sensory fingerprint of your spirit.

Weyermann® BIOLAND Rye Malt

BSG Distilling offers a selection of rye grains and malts for your spirits:

Crisp Rye Malt – An excellent choice for a100% rye mashbill, bringing strong and complex almond, spice cake, and floral notes.
Grain Millers Flaked Rye – Unmalted rye is the backbone of any straight rye and the classic flavoring grain for a bourbon mashbill.
OIO Toasted Rye Flakes – Toasting unmalted rye flakes coaxes out grainy, biscuit flavor on top of rye’s inherent pungent spice
Weyermann® BIOLAND Rye Malt – An organically-grown rye malt from Germany’s leading maltster.
Simpsons Crystal Rye – a nice addition to high-rye or all-rye formulations, this caramel malt made from rye adds sweet, nutty richness as well as excellent mouthfeel.

Save the Date:

ACSA Events in 2018

Bar Convent Brooklyn :

January 8th : Registration Deadline

June 12th & 13th : Represent ACSA at Bar Convent Brooklyn

Craft Spirits Classroom Webinars:

Quenching Your Thirst for Knowledge

January 10th: Maria Pearman from Radix Accounting: "Top 5 Key Performance Indicators for Distillers"

January 24th: Mitchell Silberberg & Knupp LLP: "Ripple Effects" (Trade Dress Design, Copyright Infringement, Contract Dispute, and What to do Should You Find Yourself with a Legal Hurdle"

5th Annual Distillers Convention and Vendor Show:

February 9th: Room block closes

March 4th: On-site registration and expanded trade show hours

March 5th: Vendor trade show, education seminars, complimentary consumer event at Heinz History Center (co-hosted with the Pennsylvania Distillers Guild)

March 6th: Vendor trade show, education seminars, craft spirits judging award dinner