Lofted Custom Spirits, a contract distillery credited for developing major brands like Bardstown Bourbon Company and Green River, announced on Monday it was launching an Alternating Proprietorship program. The program allows craft spirits brands opportunities involving “significantly reduced” excise taxes, potentially saving them as much as $6 per proof gallon.
“Lofted Custom Spirits built this program like we’ve built our business — on a foundation of true partnership, operational integrity, the utmost quality and strict compliance,” said CEO of Lofted Spirits Mark Erwin in a statement. “This foundation of trust means that our clients can pour their energy into building great brands, not consumed by process and regulation.”
The new program implements the use of the Bardstown Bourbon developer’s DSP (Distilled Spirits Plant) license and its facilities, the company claims it will offer “hands-on support” and “labor,” making the plan appear particularly attractive to smaller craft whiskey brands, which have been taking a beating in the market correction of late. Lofted claims that clients using its facilities could claim a lower federal excise tax rate on approximately 100,000 proof gallons a year.
“We’ve worked closely with the TTB to bring this offering on board in a way that ensures operational effectiveness and full compliance with industry regulations,” said Erwin. “As with every expansion we’ve made, we’ve created this program in the spirit of true partnership with the brands that trust us to keep their whiskey brand flowing.”
Lofted Custom Spirits shares that specific brands could save up to $600,000 a year, which could make a huge impact on smaller companies looking to scale in a challenging marketplace. The contract distiller responsible for developing major heavy hitters in whiskey like Bardstown Bourbon has offered up its services to respected brands like 15 STARS and Chicken Cock. The services include distilling, opportunities to purchase bulk whiskey, or creating a private label.
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