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#SmallIsBeautiful #TOTC2018 #NanoBrands
@OldDuffGenever @BrenneWhisky
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
en·tre·pre·neur
ˌäntrəprəˈnər/
noun
noun: entrepreneur; plural noun:
entrepreneurs
a person who organizes and
operates a business, taking on
greater than normal financial
risks in order to do so.
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
so·lo·pre·neur
ˌsōlōprəˈnər/
noun
noun: solopreneur; plural noun:
solopreneurs
a person who sets up and runs a
business on their own.
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
nano-
ˈnanō/
combining form
prefix: nano-
denoting a very small item.
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
What Is A Nano Liquor Brand?
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
A Very) Brief History Of Nano-
Liquor
#SmallIsBeautiful #TOTC2018 #NanoBrands
WHO am I?
#SmallIsBeautiful #TOTC2018 #NanoBrands
Allison Parc, Founder & President of Brenne Whisky
Women Behind the Brands: Allison Parc
of Brenne Whisky
#SmallIsBeautiful #TOTC2018 #NanoBrands
#SmallIsBeautiful #TOTC2018 #NanoBrands
#SmallIsBeautiful #TOTC2018 #NanoBrands
#SmallIsBeautiful #TOTC2018 #NanoBrands
WHO am I?
Who
From Micro to Nano
• Hi, my name is Gable, and I dislike third person reference. So for the purpose of these slides,
I=Gable Erenzo.
• I am the former Owner and Chief Distiller at NY’s Pioneering Tuthilltown Spirits Distillery.
Through Hudson Whiskey, we took our small farm distillery from 3 guys with the first legal,
small pot still in NYS since prohibition to an award winning and internationally known distillery.
• In 2010 we sold Hudson Whiskey to William Grant and Sons at which point I became the official
National Whiskey Ambassador for the brand.
• In 2016 we finalized our long term courtship with WGS by selling them the home of Hudson
Whiskey, Tuthilltown Spirits Distillery
• In 2014, seeing the deal as imminent, I divested in Tuthilltown in order to start my own nano
distillery. The idea came about with the passing of the NYS Craft Beverage Act (largely
attributed to my fathers legislative work), and my own desire to distill in Gardiner, staying off the
road and with my family.
A little More About ME
• Built Tuthilltown and Hudson Whiskey with my father, opening CA, TX, FL, CO,
AZ, OR, WA, DC, MD for Hudson Whiskey
• Chief Distiller from 2008-2011
• Brand Ambassador for Tuthilltown then for WGS and Hudson Whiskey
• Won 2012 Whisky Magazine “American Whiskey Ambassador of the Year”
• CSS “ Certified Spirits Specialist”
• Developed the Indigenous and Half Moon Brands and packaging for Tuthilltown
• Traveled the country educating and entertaining
#SmallIsBeautiful #TOTC2018 #NanoBrands
WHO am I?
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
Philip Duff, Irish, ex-bartender, on-trade consultant,
bar owner, drinks writer.
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
The Story Of Old Duff
2000
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
The Story Of Old Duff
2011
#SmallIsBeautiful #TOTC2018 #NanoBrands
WHAT tipped
me over into
starting a…
#SmallIsBeautiful #TOTC2018 #NanoBrands
#SmallIsBeautiful #TOTC2018 #NanoBrands
#SmallIsBeautiful #TOTC2018 #NanoBrands
#SmallIsBeautiful #TOTC2018 #NanoBrands
WHAT tipped
me over into
starting a…
#SmallIsBeautiful #TOTC2018 #NanoBrands
WHAT tipped
me over into
starting a…
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
1995
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
1998
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
1998
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
2006
#SmallIsBeautiful #TOTC2018 #NanoBrands
WHAT is
Brenne
#SmallIsBeautiful #TOTC2018 #NanoBrands
WHAT is
Gardiner Liquid
Mercantile?
What is Gardiner Liquid Mercantile?
Gardiner Liquid Mercantile
Farm Distillery, Farm Bar, Farm Table, Farm Mercantile
Partnering with a 4th generation farm and orchard, GLM brings the
still back to the farm to focus on estate spirits made from the harvest
of the Mid Hudson Valley. With a distillery operation at Dressel’s
Farm and a satellite retail shop, tasting room, bar and restaurant on
Main Street, GLM showcases the spectrum of exciting changes in NY
laws around beverage alcohol, agricultural development and tourism.
#SmallIsBeautiful #TOTC2018 #NanoBrands
Only in Gardiner
#SmallIsBeautiful #TOTC2018 #NanoBrands
WHAT is Old
Duff Genever?
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
The world’s best, most authentic, and most transparent,
#RealDutchGenever
#SmallIsBeautiful #TOTC2018 #NanoBrands
HOW did you
do it?
#SmallIsBeautiful #TOTC2018 #NanoBrands
HOW did you
do it?
#SmallIsBeautiful #TOTC2018 #NanoBrands
HOW did you
do it?
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
2015
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
Launch!
Coup, NY, 19 September, 2017
#SmallIsBeautiful #TOTC2018 #NanoBrands
WHERE is the
brand now?
and
WHERE are you
going?
#SmallIsBeautiful #TOTC2018 #NanoBrands
@BrenneWhisky
@AllisonParc
#SmallIsBeautiful #TOTC2018 #NanoBrands
WHERE is the
brand now?
and
WHERE are you
going?
Big Changes…
Making Small Financially Feasible Through Legislation. Thank You NY!
In 2014 NYS passed the Craft Beverage Act, Paving the Way for Nano Distillers
• Farm Distilleries (DD License) would now be allowed to serve NYS labeled liquor for on premise consumption, on
its own or in cocktails
• Farm Distilleries are able to sell any NYS labeled product for retail sales, including NYS beer, wine and cider for off
premise consumption
• DD licenses could now have one branch office which would be considered a non-contiguous extension of the
licensed distillery with all the rights of the bonded space.
• DD Licenses are now able to apply for an additional alcohol license allowing the sale of beer and wine for on premise
consumption
#SmallIsBeautiful #TOTC2018 #NanoBrands
…New Opportunities
Three Tier System is Dead, Long Live the Farm Distillery!
• A bottle of Brandy/Whiskey that sells for $40 at your local shop, or $8 an ounce at your local bar costs the distiller
about $7 to make. If they start with free over ripe fruit from their local orchard, more like $5. $.20 an ounce.
Imagine if you were making $35/bottle or $7.80/oz. You would have to make sooo much less.
• Having a still on a farm makes sense from an operation perspective, saving money and time and giving the distiller
access to much more than they would be given if there was more involved beyond forklifting it over. Having a retail
space or bar in a high traffic area makes sense from a business perspective. Now you can do both.
• You can support other local producers by carrying their products, and in turn they can do the same for you. You
have still cut out the middle man and both small producers make more.
#SmallIsBeautiful #TOTC2018 #NanoBrands
#SmallIsBeautiful #TOTC2018 #NanoBrands
WHERE is the
brand now?
and
WHERE are you
going?
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
From 2015:
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
Where are we now, July 2018?
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
Where are we now, July 2018?
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
Where are we now, July 2018?
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
Where are we now, July 2018?
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
Where are we now, July 2018?
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
Where are we now, July 2018?
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
Looking ahead…..
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
Why Nano?
Why Go Small?
• Less startup $
• More control over all aspects of operations
• Flexibility to experiment
• Direct contact with consumers and total control over your narrative
• Nimbleness and ability to shift direction as needed or opportunities arise
• Quality of life: less travel, more time with family, free time for hobbies and
projects, flexible schedules, no one to answer to
Think Small(er), Be Happy
When Quality of Life is Your Priority
Borrow money, build distillery, make spirits, pull hair out, brand spirits, find a distributor, educate distributor, sell sell sell,
build brands, travel, educate bartenders, do lots of in store tastings, find a divorce lawyer, make lots more spirits, gain
attention, get platinum status with your airline, find a suitor, sleep a little, sell brand, repeat or retire.
Or
Wake up around 10am, Spend your own money, buy a still, put it in your garage or neighbors farm, take a nap, get free
by-product from local farms, play with kids, distill lots of interesting things in small volumes, sell them directly to
neighbors and tourists by the ounce and bottle at the highest possible margin, take a nap, make a living, distill, take a
vacation, make any spirit your heart desires and mind can devise, have dinner with family, go back to work…or don’t
(you and the boss are tight).
#SmallIsBeautiful #TOTC2018 #NanoBrands
This?
OR
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
Why Not Nano?
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
The Journey Of
A Nano Brand
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
Is It Truly Nano?
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
Nano or No-No?
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
Nano or No-No?
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
Nano or No-No?
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
Is It Truly Nano?
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
Is it Nano: Incubators
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
Good Questions To Ask If You’re A Buyer
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
#SmallIsBeautiful #TOTC2018 #NanoBrands
TOOLS
Tools From The Road
A L L I S O N PA R C
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
Things That Helped Me - Philip
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
Things That Helped Me - Philip
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
Things That Helped Me - Philip
Thank you!
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
Thank you!
This deck: www . slideshare . net / philipduff
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
Drink Brenne @ TOTC
@OldDuffGenever @BrenneWhisky #SmallIsBeautiful #TOTC2018 #NanoBrands
…and drink Old Duff Genever!

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Small is Beautiful: The Power of Nano Brands in 2018 with Philip Duff, Allison Parc and Gable Erenzo, sponsored by Old Duff Genever and Brenne Single Malt French Whisky

Editor's Notes

  1. Allison, then Gable, then Philip – quick verbal introductions of who you are and what your brand is.
  2. Philip
  3. Philip
  4. Philip
  5. Discussion – what else characterizes a nano-liquor brand? Owner-operated V. small team, no bureaucracy Outsources needs, on-demand Brand marketer, not B2B Bootstrapping organic growth
  6. Gable – a brief history of nano-liquor UK, gin – positively encouraged in later 1600s Russia, vodka – the Tsar ruled all Cane spirits – typically part of massive plantation Agave – typically nano Cognac/brandy/eau-de-vie –often nano Pic: Gin: 1689 UK got a Dutch king who lowered taxes on domestic distilling and banned many alcoholic imports. In 1736 the 3rd Gin Act enacted a 20 shilling per gallon excise tax as well as a £50 annual license, pushing distilling into the hands of big business. Pictured: “Gin Lane” by Hogarth, which stimulated government to regulate small producers.
  7. Started telling people I was going to make a genever
  8. Founded Liquid Solutions Bar & Beverage Consulting. Went full time around 2003.
  9. Got Gaz to invent the Finger Stirred Negroni
  10. Friday nights in liquor stores,
  11. slow sipper
  12. In short it was an idea and a realization that no one in the world was doing it in a way I thought possible.
  13. Philip moved to Rotterdam to be a trainer in a chain of cocktail bars.
  14. First visit to Schiedam, a suburb of Rotterdam, once home to 392 genever distilleries at the end of the 1800s, now just two or three that still actually distill.
  15. First visit to the Genever Museum, housed in the former Melchers distillery and still a functioning distillery.
  16. Helped create Bols Genever – marketing, liquid, label – for client, Lucas Bols BV. Launched 2008, won Best New Product at Tales 2009.
  17. Cognac, France. Create a PARTNERSHIP (a little different from P & G – 3 different ways!)
  18. Stunning, right?
  19. Alembic charente stills (cultural terroir, respecting traditions of REGION)
  20. (no bourbon, port, or sherry!) …
  21. What you have is not just an amazing, single malt that is technically interesting for your whisky aficionados, or an incredible story for your die-hard American dreamers … but we also have a simply incredibly delicious, smooth and totally original whisky!!! I created something that didn’t exist before. ME. and ex-ballerina with zero experience in the industry prior. My point is….
  22. In this game right now, size isn’t the most important factor. I believe originality and authenticity are. (Size matters when you want to go from 60 to 100)
  23. We do not sell wholesale and are not available anywhere but GLM. If you want to experience our products, you must experience our Mercantile Expansion will only look like additional LM outlets for retail sales of our spirits.
  24. Launched at Coup, NY.
  25. Ask people for help and advice – they will surprise you with their generosity.
  26. Launched at Coup, NY.
  27. Listed at the top 46 bars in New York…
  28. …and on the Holland America Line cruiseline
  29. UK launch late September 2018…
  30. Gable – Ralph selling Hudson out of his car up and down the valley. Allison – sold by Citi Bike, sold 200 cases to 40 accounts in 2 months. - Free liquor-industry MBA! - Choose the battlefield you can win on as a nano-brand - Go slow, educate (not possible if big brand) - Capture the high-end on-trade outlets (trickle-down) - Is there enough money in it? For the brand owner? Distributor?
  31. - Never enough staff or coverage (or cashflow!) - Needs nerves of steel and laserlike focus - Forced to be a jack of all trades - Vulnerability to copycats if low barrier to entry
  32. Discussion / anecdotes - When do you “go big’? What does “big” mean? - Can a nano-brand evolve into a mega brand? - What’s the long-term plan?
  33. Brewdog is currently valued at $2.2bn, Cute Hoor is a nano-seeming beer from behemoth Heineken (annual sales: $25.7bn). But what about liquor?
  34. From website: “Brand X is a Global family of vodkas made in our micro-distilleries in city centres around the world…. Our/Vodka was started, by six entrepreneurs in 2011. [She] got an idea of creating a global brand with local roots. .. It was treated as a black ops project under the umbrella of [$9bn liquor firm X]”. “She” was innovation director at [$9bn liquor firm X]”.
  35. From website: “[Brand X] was started to share barrels of delicious and rare whiskey, hidden away and nearly forgotten in the back of rickhouses and distilleries. Stories of these lost whiskeys have become the stuff of legend. Our goal is to bottle these rare, small offerings for the world to try and for you to add to your whiskey collection. Every “[Brand X] whiskey is hand bottled…to ensure that these rare whiskeys are treated with the care they deserve – because some of them will only be available once. And once they're gone, they're gone forever”. No mention anywhere on website that “[Brand X] is owned by [$23bn liquor company]
  36. From website: “[Brand X] produces and bottles its spirits at…a small family distillery.”
  37. Here is the private family distillery - indeed family owned, but in fact it owns [Brand X] outright, the parent company has annual sales of $23.5m, 50-100 employees, and an annual marketing budget of between $939, 000 and $1.174m.
  38. Not entirely dissimilar to Steven Grasse’s Quaker City Mercantile. Note that Distill Ventures’ Seedlip also has a design agency as a shareholder.
  39. - Who are all the owners, shareholders & financiers? - Who owns the distillery? - Who finances production? - How many full-time equivalent (FTE) employees? - Is it produced and bottled onsite? Bottled in bond? - Is it an off-the-shelf recipe? (Templeton Rye example?) - What are the sales volumes?
  40. General: support the local (agricultural) community? Do innovative things? Allison – Gable - Philip - Nano-brands will continue to be “free R&D” departments for mega-liquor companies, consumer franchise (UK gin festival example, craft beer & wine, Amazon liquor)