The spirits industry offers numerous opportunities for brands looking to break into the market or expand their product lines. Two popular options that Big Storm Distillery and Co-Packing offers are private label spirits and contract distilling. Understanding the differences between these two options is crucial in making the right decision for your brand. In this article, we’ll explore what each service entails, their advantages and disadvantages, and guide you in determining the best option for your business.

What is Private Label Spirits?

An Overview of Private Label Spirits

Private label spirits involve partnering with an established distillery like Big Storm Distillery to create a ready-made product that you can sell under your own brand name. This option is ideal for businesses that want to enter the market quickly and with minimal upfront costs. You choose from a range of existing recipes and products, customize the label, and start selling.

Key Features of Private Label Spirits

• Ready-to-market products: The distillery provides spirits that are already formulated, distilled, and aged.

• Customizable branding: You get the opportunity to create your unique label and packaging.

• Quick market entry: Since the product is already developed, you can launch your brand faster.

• Lower investment: Reduced costs compared to developing a new product from scratch.

What is Contract Distilling?

An Overview of Contract Distilling

Contract distilling is a more hands-on approach where you collaborate with a distillery like Big Storm Distillery to create a unique spirit tailored to your specifications. This service allows you to develop your own recipe, choose ingredients, and decide on the aging process, giving you complete control over the final product.

Key Features of Contract Distilling

• Custom recipe development: Work with expert distillers to create a unique spirit from scratch.

• Full control over ingredients and process: Choose your ingredients, distillation process, and aging techniques.

• Brand differentiation: Create a one-of-a-kind product that stands out in the market.

• Longer lead time: More time is needed for recipe development, distilling, and aging.

Private Label Spirits vs. Contract Distilling: The Key Differences

Comparing the Two Options

To help you decide which route to take, let's break down the main differences between private label spirits and contract distilling.

Pros and Cons of Private Label Spirits

Advantages of Private Label Spirits

• Quick Market Entry: Since the product is already developed, you can start selling your spirits almost immediately. This is ideal for businesses that want to capitalize on trends or seasonal opportunities.

• Cost-Effective: With no need for extensive research, development, or production, private label spirits offer a lower barrier to entry.

• Low Risk: You’re working with a product that’s already been tested and proven, reducing the risk of producing a product that doesn’t resonate with consumers.

• Easy Scaling: As demand increases, you can quickly scale production since the distillery is already equipped to handle larger orders.

Disadvantages of Private Label Spirits

• Limited Customization: The primary limitation is that you can't alter the recipe or production process. Your branding is unique, but the product itself may be similar to others in the market.

• Less Brand Differentiation: Since multiple brands can use the same product, it can be challenging to stand out in a crowded market.

Pros and Cons of Contract Distilling

Advantages of Contract Distilling

• Full Customization: One of the most significant benefits of contract distilling is the ability to create a product tailored to your vision, taste, and market positioning. From the ingredients to the distillation process, every aspect is customizable.

• Greater Brand Differentiation: With a custom product, your brand stands out, offering consumers something unique that they can't find anywhere else.

• Expert Guidance: Partnering with a distillery like Big Storm means you benefit from the expertise of experienced distillers, ensuring a high-quality product.

Disadvantages of Contract Distilling

• Higher Costs: Developing a custom spirit requires more time, resources, and investment, making it a more expensive option upfront.

• Longer Time to Market: The process of developing a recipe, distilling, aging, and packaging can take months or even years, depending on the complexity of the spirit.

Which Option is Right for Your Business?

Factors to Consider When Choosing Between Private Label and Contract Distilling

Choosing between private label spirits and contract distilling depends on your brand’s goals, budget, and timeline. Here are key factors to consider:

1. Budget

   • If you’re working with a limited budget, private label spirits offer a cost-effective way to enter the market.

   • Contract distilling requires a larger investment but offers more potential for higher profit margins due to product differentiation.

2. Time to Market

   • Private label spirits are ideal for brands looking to launch quickly, such as for seasonal promotions or to test the market.

   • Contract distilling is better suited for brands with a longer-term strategy that can afford to wait for a custom product to be developed.

3. Brand Vision and Differentiation

   • If having a unique product that embodies your brand's personality is a top priority, contract distilling is the way to go.

   • If your primary focus is branding and you’re less concerned about a unique flavor profile, private label spirits are a good fit.

4. Market Positioning

   • Contract distilling allows you to position your brand as a premium, artisanal, or craft product with a unique selling proposition.

   • Private label spirits may be better for brands targeting a broader audience or looking to offer a more affordable option.

FAQs: Private Label Spirits vs. Contract Distilling

Frequently Asked Questions

1. How much does it cost to start with private label spirits compared to contract distilling?

• Private Label Spirits: Costs are generally lower because you’re buying an existing product. Expect to invest in branding, labeling, and minimum order quantities.

• Contract Distilling: Costs vary based on recipe development, production, and aging but can be significantly higher due to the customization involved.

2. Can I switch from private label spirits to contract distilling later?

Yes, many brands start with private label spirits to test the market and build brand recognition. Once they gain traction and revenue, they often transition to contract distilling to create a unique product.

3. How long does it take to develop a contract-distilled spirit?

The timeline can vary widely based on the type of spirit, aging process, and complexity of the recipe. On average, it can take anywhere from 1 month to 2 years depending on the spirit.

Why Choose Big Storm Distillery and Co-Packing for Your Spirits Needs?

Our Expertise in Both Private Label and Contract Distilling

At Big Storm Distillery and Co-Packing, we have extensive experience helping brands succeed, whether through private label spirits or contract distilling. Our state-of-the-art facility, skilled distilling team, and commitment to quality ensure that your brand receives exceptional service, regardless of which option you choose.

Why Work with Us?

• Customized Solutions: We offer both private label and contract distilling services tailored to your brand’s needs.

• Quality Assurance: Every product we create meets the highest industry standards.

• End-to-End Support: From product development to packaging and labeling, we provide comprehensive support throughout the process.

Which Is Right for You – Private Label Spirits or Contract Distilling?

Choosing between private label spirits and contract distilling comes down to your brand’s goals, budget, timeline, and vision. If you’re looking for a fast, cost-effective way to enter the market, private label spirits from Big Storm Distillery offer a quick and easy solution. However, if you aim to create a truly unique product that reflects your brand’s identity and can stand out in the competitive spirits market, contract distilling is the way to go.

No matter which path you choose, Big Storm Distillery and Co-Packing is here to help you succeed. Contact us today to discuss how we can bring your spirits brand to life!