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Beverage Master June July 25

Inside This Issue:

Ideas for a Successful

Summer Season

See Full Story on Page 29

June - July Issue 2025

BEV

EVERAGE

MASTER

C r a f t B r e w & S p i r i t s M a g a z i n e

Designing Beers for a

Cocktail World - Pg 9

Are Your Beverages Ready

for a Recession? - Pg 16

Grassroots Marketing

for the Summer - Pg 25

Expand Your Beverage Portfolio

with Craft Spirits - Pg 39

Table of Contents

Beyond the Container: Understanding

Packaging and Its Subproducts for

Modern Breweries ...................................3

Designing Beers for a Cocktail World ..........9

Introducing Y'all's Beer: A True Taste of

Texas from Revolver Brewing .................13

Craft Brewery

President & Publisher

Jeffrey D. Bricker

Vice President & Editor

Cyndi C. Bricker

Assistant Editor

Alyssa Ochs

Manager

Jo Cloud

Staff Writers

Gerald Dlubala

Earl Sullivan

Becky Garrison

Mark Colburn

Hanifa Sekandi

Alyssa Ochs

Craft Beverage Practice

Jake Ahles - Morel Creative

D. Delorenzo, Bar & Rest. Insurance

PMMI

Loan Mantra

Distillery Now Consulting LLC

Erik Lars Myers

Bricker Publishing

Division of: Bricker Group, LLC

1409 13th Street North

Humboldt, IA 50548

E-mail: editor@BrickerPublishing.com

Website: www.BrickerPublishing.com

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label or email changes to editor@brickerpublishing.com

Are Your Beverages Ready for a

Recession? ...........................................16

Craft Beverage Brands Demand Flexible

Equipment............................................22

Grassroots Marketing in the Summer .......25

Ideas for a Successful Summer Season.....29

Brew & Spirits

Craft Distillery

Craft Cider

High Wire Distilling Company: An

Agriculturally Focused, Ingredient-Based

Distillery ..............................................32

Expand Your Beverage Portfolio with

Craft Spirits ..........................................39

Bauman's Cider: Producing Internationally

Renowned Ciders with a Hometown Feel ..44

2 June - July 2025 BEVERAGE MASTER

BEVERAGE MASTER June - July 2025 3

Craft Brewery

Understanding Packaging and Its

Subproducts for Modern Breweries

By: Alyssa L. Ochs

Beyond the Container:

n the modern brewery, packaging is

more than just a finishing touch or an

afterthought at the final stage of produc-

tion. Rather, it is a vital part of a brew-

ery's brand strategy, a way to improve

operational efficiency and a mechanism

for achieving sustainability goals.

Innovative packaging technologies help

breweries grow and adapt to changing

consumer demands. Settling for what

used to work in the past to package beer

is no longer an option for forward-think-

ing producers. From wrap-around case

packing to shrink sleeve application, side

loaders and compact palletizing, new

packaging solutions are redefining what

it means to be ready for production and

attract a strong consumer base.

This article explores various aspects of

brewery packaging and its subproducts,

driven by real-world insights and compa-

nies that are setting new standards for

aesthetics, efficiency, and sustainability.

Primary Packaging Basics:

Core Components for a

Strong Foundation

Simply put, the foundation of all brew-

ery packaging operations is the contain-

ers holding the beer. Whether you pour

your beer into cans, bottles, or kegs, this

Photo Credit: Earthrings

4 June - July 2025 BEVERAGE MASTER

is the cornerstone of your primary pack-

aging and the basis for which all subprod-

ucts must complement.

Cans now dominate the craft beer in-

dustry because of their logistical advan-

tages, recyclability, and durability. For

cans, many breweries have begun to em-

brace shrink-sleeve application technolo-

gy with full-wrap, high-impact branding.

Producers like Mother Earth Brewing

(Vista, California and Nampa, Idaho) have

used automated cartoners to stream-

line the process of erecting and packing

cases and trays. Modern cartoners allow

easy changeovers between 12-ounce and

16-ounce cans and help breweries keep

up with growing demands.

Meanwhile, a sizable number of brew-

eries still favor glass bottles for special-

ty beers or to celebrate nostalgia and

beer-drinking traditions. Packaging bot-

tles requires careful consideration for

handling and shipping weight.

Stainless-steel kegs remain efficient

vessels for on-premise distribution,

events, and international export. Howev-

er, PET plastic, one-way kegs are trending

as a sustainable and cost-effective alter-

native to stainless steel because of their

lightweight, compact, high-oxygen barrier

advantages.

Closures, whether in the form of cap

ends, swing tops, crown caps or keg

fittings, are also primary packaging prod-

ucts critical to maintaining freshness and

the necessary pressure.

Packaging Subproducts:

Behind-the-Scenes, Yet Crucial

However, there is enormous potential in

the best uses of secondary and tertiary

packaging materials, also known as sub-

products. These materials play essential

roles in protecting and presenting beer,

as well as in distribution coordination and

sustainability.

For example, combined cardboard and

film packaging are hybrid materials that

offer excellent visibility and strength to

a packaging strategy. Shrink-wrapping

helps bundle beer multipacks and pal-

lets. There are breweries that are mov-

ing towards biodegradable films and

reduced-gauge materials to improve the

eco-friendly qualities of their shrink wrap-

ping.

Wrap-around case packing systems are

high-speed systems that can limit down-

time and reduce the strain on machinery.

Wrap-around cases that operate in con-

tinuous motion provide a precise and fast

way to create and seal boxes around beer

products, thereby improving line efficien-

cy and speeding up the packaging pro-

cess.

For example, Summit Brewery Company

(St. Paul, Minnesota) has achieved virtu-

ally no downtime and no needed repairs

using an InvisiPac® Tank-Free™ Hot Melt

System. Graco worked with the brewery

Craft Brewery

6 June - July 2025 BEVERAGE MASTER

Craft Brewery

to boost production efficiency by reducing

hot melt adhesive waste and stabilizing

the rate of glue consumption.

Shrink sleeve applications are popular

because of their 360-degree branding

opportunities. They are ideal for cans and

specialty bottles, conforming to unique

contours better than pressure-sensitive

labels. Breweries love this trend because

of the vibrant, high-impact branding that

does not require pre-printed containers.

Shrink sleeves enhance brewers' branding

flexibility and are ideal for seasonal brews

and limited releases.

Other essential packaging subproducts

include tray packs, dividers, and side

loaders. Corrugated trays and side load-

ers help maintain line efficiency and pre-

vent damaged products. This is especially

critical when packaging beer in glass or

mixed-format packs.

Cardboard carriers and dividers protect

units and enhance their visual presenta-

tion for consumers. By combining card-

board and film packaging, a brewery can

use less material than it would with tradi-

tional cartons while ensuring visibility and

protection.

Other aspects of packaging are the inks

and adhesives used on beer labels. At

a minimum, these materials must stay

affixed to the product and be readable.

However, you can use water-based inks

and adhesives that are low in volatile or-

ganic compounds to tap into eco-minded

consumer preferences and support your

brewery’s sustainability initiatives.

Evolving Automation:

Equipment Innovations for

All Sizes of Breweries

In the past, automation was only con-

sidered relevant for large, well-estab-

Packaging Machinery

for Cans, Bottles & Kegs

We Put Liquids Into Solids

Call Us or Visit Our Website Today!

(314) 282-7145 • www.fillmore.beer

Fillmore Packaging Solutions provides affordable beverage

packaging for small and aspiring craft beverage makers.

Our machines are uniquely engineered to provide you with

the bottling, canning and keg washing support you need

for success!

BEVERAGE MASTER June - July 2025 7

Craft Brewery

lished breweries with extensive packaging

needs. However, even smaller breweries

are embracing automation because of the

compact packaging systems now avail-

able.

For instance, breweries can find com-

pact palletizing solutions that are de-

signed for small spaces. You don’t need a

warehouse-sized space to automate your

brewery with a compact palletizer.

Breweries of all sizes can also automate

their packaging with side loaders and tray

packers. These investments help brewery

packaging lines move at high speed and

overcome labor concerns. Side loaders

efficiently place cans and bottles into car-

tons and are often used alongside wrap-

around case packers to reduce manual

labor.

Advanced machinery solutions like

wrap-around case packing can streamline

operations with minimal stop time. The

result is faster throughput and reduced

wear and tear on machinery components.

Shrink sleeve applicators can accommo-

date various container sizes and shapes,

even allowing for late-stage customiza-

tion if design ideas change over time.

Brewery Packaging with

Sustainability in Mind

Eco-friendly brewing is no longer a

niche — it is a requirement for modern

beer producers. Breweries must weigh

the pros and cons of the materials they

use for beer packaging considering where

they came from, how much they strained

natural resources to produce and their

recyclability.

Fortunately, breweries can boost their

sustainability and lower their carbon foot-

prints in many ways. Lightweight mate-

rials, such as thinner bottles and cans,

can help reduce vehicular emissions from

trucks used to transport products. If you

package and label your products onsite

rather than outsourcing this work, you

can maintain greater supply chain control

and produce beer sustainably.

Meanwhile, using recyclable and com-

postable beer carriers is a fantastic way

to reduce landfill waste and release fewer

planet-overheating gases into our envi-

ronment. Film-cardboard hybrids help

breweries reduce plastic waste while still

being visually appealing and durable.

Eco-friendly carriers perform well and can

now often be recycled or degrade natural-

ly once discarded.

To prioritize sustainability, breweries can

also work with their packaging suppliers

to develop eco-friendly formats tailored to

their unique needs. Customization is now

commonplace in this industry, as brew-

eries do everything they can to stand out

from the competition in a crowded mar-

ketplace.

There are also reusable and refillable

bottle and keg return programs that

breweries can investigate. These types

of programs are expanding through-

out North America and Europe, making

them legitimate options for many modern

breweries. Exploring all available sus-

tainability options can help brewers align

their business with their environmental

values and comply with changing legisla-

tion.

Multiple innovative companies are now

working in the sustainability space to give

breweries more options.

UniKeg offers PET plastic kegs as a

lightweight, cost-effective solution to

traditional steel kegs. Earthrings is a

company that offers 100% recyclable and

compostable beverage rings constructed

from sustainable cardboard.

Another company, WestRock, offers

paper-based brewery packaging solu-

tions, such as cartons and multipacks, to

help brewers reduce their plastic use. DS

Smith collaborated with Martins Brewery

to develop a custom, sustainable six-pack

handle packaging product for glass bot-

tles.

These are just a few examples of com-

panies that have identified a need in this

space among breweries and risen to the

challenge to help promote sustainable

beer production.

Final Thoughts and the

Future of Beer Packaging

Although brewery packaging subprod-

ucts might seem like minor factors in

the overall production and sale of prod-

ucts, they collectively have a significant

impact. Subproducts can either make

or break a brewery in terms of shipping

efficiency, regulatory compliance, labor

demands and carbon footprint.

Looking ahead, the craft beer industry

has a lot to look forward to with regard to

smart and sustainable packaging. Tech-

nology companies have made QR codes

and smart labels accessible and enticing

as a way to market content directly to

consumers.

There has been a trend towards even

small nano- and microbreweries investing

in compact and mobile canning solutions

to reduce their reliance on third-party

companies. With sustainability now top-

of-mind for breweries worldwide, eco-de-

sign integration is increasingly important.

Now, breweries must not only think about

how their products are packaged but also

where they will end up after they are

used — ideally recycled, reused, or com-

posted.

8 June - July 2025 BEVERAGE MASTER

Craft Brewery

BEVERAGE MASTER

June - July 2025

he beverage market has been evolv-

ing. No longer are we in a world of

beer drinkers, wine drinkers, and cocktail

drinkers. Today’s savvy beverage con-

sumer drinks all three. This provides a

unique opportunity for breweries; beer

has such a wide palette of potential fla-

vors that it is possible to create a beer to

mimic a cocktail to attract a wider audi-

ence of potential drinkers.

However, doing so takes more consid-

eration than throwing a few specialty

ingredients in the kettle. It is an exercise

in thinking outside of the box. As an ex-

ample of how this might be approached,

consider a beer designed around the clas-

sic bourbon cocktail: The Old Fashioned.

Breaking Down Flavors

What makes an Old Fashioned taste

like an Old Fashioned? Hint: It’s not just

the bourbon. Like any other drink, what

makes a cocktail taste good is the full

complex array of ingredients. In this

case, bourbon, orange, cherry, simple

syrup, and bitters. To break that down

even further, the prominent flavors in

bourbon – derived from alcohol, esters

that survive distillation, and wood con-

tact – are a blend of complex fruitiness

Designing Beers for a

Cocktail World By: Erik Lars Myers

Craft Brewery

10 June - July 2025 BEVERAGE MASTER

and vanillins that include descriptors like

vanilla, cinnamon, coconut, burnt sugar,

and cocoa, among others.

It is impossible to perfectly replicate all

of this in a carbonated, fermented (not

distilled) beverage, but the idea isn’t to

perfectly replicate it so much as it is to

bring the drinker as close as possible giv-

en the medium.

When designing a beer like this one of

the easiest traps to fall into is to start

with a style, but it’s a disingenuous start-

ing point. Any beer that is true to a par-

ticular style will, by definition, not taste

like an Old Fashioned. Instead, disregard

the notion of “style” and build the beer

around the cocktail’s flavor profile. If, at

the end of the day, there is a need to ap-

ply a “style” to it for marketing purposes,

simply reverse engineer from the ingredi-

ent selection. The Trade and Tax Bureau

only requires that it be designated “Ale”

or “Lager.”

Malt Selection and Mash

Many of the flavors and colors present

in bourbon are present in malt. It’s easy

to choose a base malt – a simple 2-Row

Pale – that is merely a source of fer-

mentables, but it’s worth using something

with more robust and complex malt char-

acter. Consider a floor malted Maris Ot-

ter, Mild Malt, Vienna, or Munich malt, or

even a combination thereof, to select for

a toasty, complex sugar base. One of the

important ingredient additions to an Old

Fashioned – simple syrup – is one that

you can begin to manage through malt

selection and mash management.

Bourbon picks up its color through wood

contact, but here caramelized and roast-

ed grain are the source. Additions of

higher SRM caramel malts can add re-

sidual sugar and just the right amount of

color. Be wary of roasted malt additions.

While small amounts of roasted malt

might impart excellent color and some of

Craft Brewery

BEVERAGE MASTER

June - July 2025

the cocoa or smoky complexity of bar-

rel-aging, too much of a burnt/roast char-

acteristic would be wholly out of place. In

addition, many roasted malts tend toward

a red or ruby hue rather than the warm

orange/brown of bourbon.

Slightly higher mash temperatures,

154F – 156F, might be tempting for malt

complexity but remember that while al-

pha amylase promotes dextrin formation,

the long complex sugar chains that add

great body to a beer don’t necessarily

taste sweet.

Hop Selection

While hops don’t feel like a good fit for

a beer like this, hops are an important

addition to every beer. In this case, not

only can they create a balanced base

beer, they can also be used to add flavor

complexity to the final “cocktail.” Con-

sider that an Old Fashioned is made with

a dash or two of bitters, and so a low

residual bitterness is not misplaced. An

initial boil kettle IBU addition of 10 – 20

IBUs seems like a good starting point,

but leaving hops out of the boil otherwise

might be a good idea.

Next comes hop character. There are

many classic hops with orange and other

citrus flavors: Centenniel, Cascade, Citra,

Amarillo. However, some of the new hop

strains that are marketed for Hazy IPAs

might be well incorporated here. A small

(0.25 - 0.5 lbs/bbl) whirlpool addition of

Julius, Hydra, or Caliente hops can add

complex characteristics of tangerine or

clementine that would pair beautifully

with citrus fruit additions.

Water Chemistry

A low Sulfate to Chloride ratio (0.8 –

1.0) seems like a good starting point in

designing water chemistry for a cock-

tail-inspired beer, accentuating and pro-

moting malt characteristics. But bear

in mind those dashes of bitters that go

into a good Old Fashioned. In this case,

a slightly higher Sulfate addition could

be more appropriate: enough chloride to

keep malt prominent, but not so much as

to dampen the bittering effects of small

hop additions.

Yeast Selection

There are three ways you can approach

yeast on a beer like this. One is to choose

as neutral a yeast as possible – an Amer-

ican Ale yeast, for instance – and let the

rest of the recipe do the lifting.

Another is to choose a specific yeast

with fermentation characteristics that

match the flavor profile that you’re trying

to create. English ale yeasts with strong

ester formation, and perhaps high alcohol

tolerance, can be of great use especially

as many of them also keep a fair amount

of residual sugar around – an important

consideration in the “simple syrup” por-

tion of this recipe.

Finally, a third, less predictable (and

reproduceable) route, would be to blend

yeasts for fermentation. Using a combi-

nation of a cleaner English or American

ale yeast with a small portion of Belgian

Abbey or even Hefeweissen yeast could

potentially add a complex ester palate

with subtle, fermentation-based cher-

ry (Abbey ale) or banana (Hefeweissen)

notes, as long as the strains are all STA-1

negative.

Perhaps more reliably, a brewer could

split the wort, ferment each portion with

different strains and then blend back

together for a final product. Of course,

this comes with the added complexity of

requiring more fermentation space and

more lab work to guarantee a stable and

reproduceable final product, so it should

be entered into with care and delibera-

tion.

Craft Brewery

12 June - July 2025 BEVERAGE MASTER

Spices, Fruits, Other Additions

Perhaps the easiest step in designing a

beer around a cocktail is approaching the

ingredients that are added into the cock-

tail itself. An Old Fashioned orange and

maraschino cherry garnish is perhaps the

most obvious and easy part to replicate

by adding bitter orange during the boil, or

Luxardo or maraschino cherry juice into

your fermentation. The difficult part is

doing so with balance in mind – this isn’t,

after all, an orange beer or a cherry beer,

but a beer built around another, balanced

beverage. Restraint is called for.

What might be easier to overlook are

additions that can add to the spirit char-

acteristics of your finished beer. Again,

bourbon characteristics are complex.

Spice additions at the end of your boil, or

during fermentation, are opportunities to

add in flavors to increase that complex-

ity: vanilla, coconut, cinnamon, black or

white pepper, cloves, allspice, or any wide

variety of other flavors, in very small

quantities, can lend an enormous amount

of complexity to the finished body and

profile of your cocktail-designed-beer.

Barrel Aging or Spirit Flavors

Of course, the easiest path to creating

a spirit-flavored beer is by aging the beer

itself in a barrel that once housed that

spirit. However, when doing so, consider

that time and oxidation will dull the subtle

nuances of the original beer. If barrel-ag-

ing is in the future for the recipe, consid-

er relying less on hop or fruit additions,

or make judicious flavor additions after

it’s been taken out of aging. Be wary of

over-aging where wood characteristics

might overshadow the original beer.

Finished Beer Considerations

Carbonation level will make an enor-

mous difference in how this beer is per-

ceived. While a beer designed around a

French 75 might be light and spritzy with

high carbonation levels, this beer might

benefit from carbonation on the lower

end of the scale, in the 2.1 – 2.3 volume

range.

A brewery with the right capabilities

might even consider cask engine or serv-

ing via nitro for a smoother experience..

Serving the Final Product

In the tasting room or brewpub, don’t

miss the opportunity to treat this beer

as the special product that it is. Sloshing

it straight down into a shaker pint glass

is fine, and certainly will move money

over the bar, but part of the experience

of a good cocktail is presentation and the

opportunity also exists here. Maybe this

beer is served in a goblet with a twist of

orange on the rim. Maybe a high-ABV,

barrel-aged version of this beer is served

in a rocks glass with a Luxardo cherry

garnish.

No matter what, presenting the cus-

tomer with a unique experience will help

them appreciate the craft and care that

went into designing the recipe and help

them make the connection to the original

beverage.

A beer designed around a cocktail will

never be that cocktail, but it does give

both the producer and drinker the op-

portunity to appreciate and explore the

wide array of possibilities available to a

well-practiced and thoughtful brewer in

the nuanced palette of craft beer.

About the Author

Erik Lars Myers is an award-winning

professional brewer and lover of beer. He

has written two travel guides about beer

and written and edited multiple books

about homebrewing.

Introducing Y'all's Beer:

A True Taste of Texas from

Revolver Brewing

BEVERAGE MASTER

June - July 2025

GRANBURY, Texas, May 22, 2025

(GLOBE NEWSWIRE) - Revolver Brewing,

a craft beer pioneer in North Texas and

craft beer brand by Tilray Brands, Inc.

(NASDAQ: TLRY and TSX: TLRY), known

for crafting bold and uniquely Texan

beers, is proud to unveil its latest cre-

ation: ‘Y'all's Beer’— a crisp, refreshing

lager brewed for good times, great taste,

and the kind of camaraderie that brings

people together.

Y’all’s Beer is cold, crisp, and endlessly

crushable. It’s our tribute to classic Amer-

ican lagers—simple, satisfying, and made

for sharing. Crafted with premium ingre-

dients and a

modest 4.0%

ABV, this

easy-drink-

ing lager

celebrates

the everyday

traditions

that connect

us—whether

it’s a back-

yard hang-

out, a shared laugh, or a song everyone

knows by heart.

"Y’all’s Beer isn’t just ours—it’s yours,

too. We brewed it to honor the moments

that matter most. It’s easygoing, famil-

iar, and made for anyone who loves good

beer and even better company," said Kayt

Smith, Senior Brand Manager, Revolver

Brewing.

Y’all’s Beer is available in stores across

Texas and Oklahoma in 12-packs of 12

oz. cans and coming on draft this sum-

mer.

For more information about Y’all’s Beer

and Revolver Brewing, please visit www.

revolverbrewing.com and follow us on

Instagram @RevolverBrewing to stay

updated on events, promotions, and all

things Texas beer.

About Revolver Brewing

Founded in Granbury, Texas, Revolver

Brewing has built its reputation on push-

ing bound-

aries while

staying

true to its

roots. With

a lineup of

innovative,

high-qual-

ity brews,

Revolver

continues to

craft beers

that embody Texas tradition with a mod-

ern twist.

About Tilray Brands

Tilray Brands, Inc. (“Tilray”) (Nasdaq:

TLRY; TSX: TLRY), is a leading global

lifestyle and consumer packaged goods

company with operations in Canada, the

United States, Europe, Australia, and

Craft Brewery

Revolver Brewing launches

a crisp, satisfying 4.0% ABV

Texas-style lager just in time

for the summer heat!

14 June - July 2025 BEVERAGE MASTER

Latin America that is leading as a trans-

formative force at the nexus of cannabis,

beverage, wellness, and entertainment,

elevating lives through moments of con-

nection. Tilray’s mission is to be a leading

premium lifestyle company with a house

of brands and innovative products that

inspire joy and create memorable expe-

riences. Tilray’s unprecedented platform

supports over 40 brands in over 20 coun-

tries, including comprehensive cannabis

offerings, hemp-based foods, and craft

beverages.

For more information on how we are

elevating lives through moments of con-

nection, visit Tilray.com and follow

@Tilray on all social platforms.

Forward-Looking Statements

Certain statements in this communi-

cation that are not historical facts con-

stitute forward-looking information or

forward-looking statements (together,

“forward-looking statements”) under

Canadian and U.S. securities laws and

within the meaning of Section 27A of the

Securities Act of 1933, as amended, and

Section 21E of the Securities Exchange

Act of 1934, as amended, that are in-

tended to be subject to the “safe harbor”

created by those sections and other appli-

cable laws.

Forward-looking statements can be

identified by words such as “forecast,”

Craft Brewery

“future,” “should,” “could,” “enable,” “po-

tential,” “contemplate,” “believe,” “antic-

ipate,” “estimate,” “plan,” “expect,” “in-

tend,” “may,” “project,” “will,” “would” and

the negative of these terms or similar ex-

pressions, although not all forward-look-

ing statements contain these identifying

words.

Certain material factors, estimates,

goals, projections, or assumptions were

used in drawing the conclusions con-

tained in the forward-looking statements

throughout this communication. For-

ward-looking statements include state-

ments regarding our intentions, beliefs,

projections, outlook, analyses, or current

expectations. Many factors could cause

actual results, performance, or achieve-

ment to be materially different from

any forward-looking statements, and

other risks and uncertainties not pres-

ently known to the Company or that the

Company deems immaterial could also

cause actual results or events to differ

materially from those expressed in the

forward-looking statements contained

herein.

For a more detailed discussion of these

risks and other factors, see the most

recently filed annual information form

of Tilray and the Annual Report on Form

10-K (and other periodic reports filed with

the SEC) of Tilray made with the SEC and

available on EDGAR.

The forward-looking statements includ-

ed in this communication are made as of

the date of this communication and the

Company does not undertake any obliga-

tion to publicly update such forward-look-

ing statements to reflect new information,

subsequent events, or otherwise unless

required by applicable securities laws.

Craft Brewery

BEVERAGE MASTER

June - July 2025

Brew & Spirits

16 June - July 2025 BEVERAGE MASTER

s the U.S. Headed for a Recession? And

if so, is your beverage business reces-

sion proof? In the United States, only the

panel of experts at the National Bureau

of Economic Research (NBER) is able to

classify economic conditions as an ac-

tual “recession.” At its most basic level,

a recession is marked by two, consecu-

tive quarters of economic contraction or

negative real Global Domestic Product,

(GDP). Understandably, more is at play

in making this kind of analysis and most

economists believe there are four major

recession indicators.

Understanding that NBER must classify

a recession, economists and financial an-

alysts are closely monitoring several key

indicators that suggest economic slow-

down in 2025:

Declining Consumer Spending: The

University of Michigan’s Survey of Con-

sumers’ Index of Consumer Sentiment

showed a 10.5% decline in consumer

confidence in April. U.S. households are

beginning to cut back on discretionary

purchases creating ripple effects across

industries from retail to hospitality.

Are Your Beverages Ready

for a Recession?

By: Raj Tulshan, founder of Loanmantra.com

Brew & Spirits

BEVERAGE MASTER

June - July 2025

Tighter Credit Markets: The Federal

Reserve’s efforts to control inflation have

led to higher interest rates, making it

more expensive for businesses to borrow.

Many lenders have also become more

cautious, tightening their lending box-

es and limiting access to capital. Small

Business Administration (SBA) changes

have caused industry shifts for govern-

ment-guaranteed lending and associated

products.

Business Slowdowns: Hiring has

slowed, and some companies are scaling

back operations as demand softens. Gov-

ernment layoffs have impacted the pri-

vate sector. These trends may continue to

lead to more job losses.

Trade and Tariffs: With major tariffs,

most business owners are wary of what

that means for their bottom line. They

suspect that tariffs will increase produc-

tion costs, challenge the supply chain and

disrupt small business operations.

10 Tips to Recession Proof

Your Business

If a recession takes hold, beverage

businesses—especially those reliant on

consumer spending—will likely face many

challenges. Loan Mantra offers approach-

es to offset these challenges:

CHALLENGE- Staying Sober: Being in a

constant state of uncertainty and enter-

taining a daily stream of negative news

can have a devastating mental impact on

the general population.

APPROACH- Drowning in questions and

doubt will not help the business become

more recession proof. As a business own-

er, employees, customers and the public

will be watching your example for signs of

a crisis. Focus on what the business does

best. Instead of becoming overwhelmed,

break down tasks into day-to-day action-

able steps. Offer an open-door policy and

18 June - July 2025 BEVERAGE MASTER

Brew & Spirits

be transparent with loyal employees. Of-

fer a group approach and/or collaboration

with all aspects of the business to come

up with solutions on how to meet goals.

CHALLENGE- Less Served: With cus-

tomers spending less, businesses may

struggle to maintain sales levels.

APPROACH- Review tangential prod-

uct flow and reduce expenses that may

not be necessary. For instance, if you’re

a restaurant, for food deliveries instead

of including plastic utensils with to-go

orders, include items upon request, ex-

clude napkins or excessive packaging

with Beverage delivery. Over a year these

small adjustments can add up to substan-

tial savings. Common expenses can also

be distributed over several locations. For

instance, cross train bar and waitstaff and

schedule among different sections and

work sites.

CHALLENGE- Hyped up Hops: Infla-

tion-driven price increases on goods, ma-

terials and wages could squeeze already

thin profit margins. Tariffs also threaten

to make costs higher on imported goods.

APPROACH- Reduce time spent on tasks

that don’t directly impact sales and pro-

duce revenue. Efficient inventory man-

agement ensures you’re not tying up cap-

ital when you need it most for tasks like

cleanup, makeready and taking invento-

ry. For example, many retailers take an

inordinate amount of time on inventory.

Could this utility time spent for employ-

ees to count and restock be more effi-

cient? Consider tightening inventory man-

agement by prolonging buying until it’s

necessary using the just in time method.

Scale down product choices to the most

popular brews or brands that offer high-

er margins. Companies like Bonobos are

already ahead of this curve. This retail-

BEVERAGE MASTER

June - July 2025

Brew & Spirits

er offers concierge service that makes

up for lack of on-site inventory. With an

increased focus on customer service,

customers can try on pieces at the store

location which are then ordered and de-

livered to customers homes. Can this

model be replicated by offering sample

tastings with pre-pay for larger orders

that can be delivered on demand?

CHALLENGE- Beer Money Fund: With

banks tightening their lending standards,

securing loans or lines of credit may be-

come more challenging.

APPROACH- Having appropriate cash/

capital reserves on hand is a vital step to

recession proof a business. Loan Mantra

recommends that businesses should have

at least one month of operating expenses

or ten percent of revenue on hand during

a normal economy. In times of recession,

businesses should hold 3-6 months of

operating expenses. The time to shore up

emergency reserves, apply for a line of

credit or loans is before you need it.

Don’t wait to get commitments from a

lending institution. Prequalifying for loans

before you need them can give you peace

of mind knowing funds are readily ac-

cessible if necessary and help recession

proof the business. Also remember that

chaos creates the opportunity to buy as-

sets when prices fall that will later appre-

ciate.

CHALLENGE- Half on Tap: Trying to

meet revenue projections made last year

may be impossible impacting the ability

to meet payroll, make payments or even

stay in business.

APPROACH- Review original financial

forecasts and re-assess plans based on

the new economic reality. Scale back and

ramp up essentials, finding new bench-

marks and project out accordingly. Watch

market trends like consumer sentiment.

Invent new ways to make money and

diversify revenue. Chaos brings oppor-

tunity. Discover what opportunities and

optimize based on those findings.

CHALLENGE- Loan or Groan: The fi-

nancial crisis in 2008 exposed the vulner-

ability of both consumer and commercial

markets to predatory lenders. Institutions

with questionable lending practices of-

fered exploitive interest rates on loans

where borrowers were caught in a cycle

of paying interest on compounded inter-

est that resulted in bankruptcies.

APPROACH- Be wary of inflated inter-

est rates on loans. Right now, it is easier

than ever to access a diverse group of

lenders to get funding that offers the best

rates and alternatives for businesses. For

example, any business can seek exper-

tise to find the lowest rate and financing

through technology offered at companies

like loanmantra.com, an online portal that

provides streamlined access to all funding

sources and expertise to determine the

WITH FLAVOR

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compliment your portfolio with our

line of flavors! (Contact us for Samples)

Visit our website or call us TODAY!

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20 June - July 2025 BEVERAGE MASTER

Brew & Spirits

best loan products and providers.

CHALLENGE- Traffic Circle: Consumers

facing job loss or decreased purchasing

power may spend less and have limited

disposable income.

APPROACH- Focus on retaining custom-

ers. This could be prioritizing exceptional

customer service, capitalizing on loyalty

programs and through marketing person-

alization to maintain and strengthen your

customer base. Look at ways to make it

easier for customer to spend money with

your business like offering incremental

payments instead of requiring the total

up front. Acquire customers for life is

more important that an individual trans-

action.

CHALLENGE- Bottle Battles: Increasing

tariffs may limit access and availability of

product components, bulk materials and

supplies.

APPROACH- Evaluate cost increases,

remain flexible and anticipate delays.

Suppliers based in Asia may be the most

hurt. Try to absorb some of the increased

cost of good. Identify the least amount

needed to push to the end consumer.

Identify potential vulnerabilities and se-

cure reliable suppliers to mitigate cost

fluctuations. Find additional supply sourc-

es that are US-based if possible. Open

lines of communication with current sup-

pliers to negotiate better terms or pric-

es and cost-cutting measures. Building

strong relationships with suppliers can

result in favorable deals that help reduce

costs during lean times.

CHALLENGE- Distilled Down Sills: Pre-

viously approved expenditures including

additional resources and equipment may

be frozen.

APPROACH- Analyze operating systems

to eliminate waste. Has the business

drifted toward more expensive habits?

Optimize operations by looking for ways

BEVERAGE MASTER

June - July 2025

Brew & Spirits

to streamline tasks and improve effi-

ciency. Aim to automate repetitive tasks

through technology to save time and re-

duce long-term costs. Evaluate addition-

al lines of business for profitability and

sustainability. Look for additional ways to

diversify and add revenue.

CHALLENGE- Measure or Pour: A lack

of inventory can inhibit production.

APPROACH- Consider mass purchasing

of supplies that may not be available in

the future or before prices increase. Eval-

uate existing product lines and services to

determine if substitutions can be made.

Look at potential options as alternatives

that may not be ideal long-term but will

still satisfy customers. For example, if

you are unable key ingredients, what can

you make? For instance, if Champagne is

not accessible can you offer high quality

Sparkling wine as a choice?

Looking Ahead

While the future remains uncertain,

beverage businesses can become more

recession proof against economic down-

turns by planning. Keeping an eye on

market trends, managing finances strate-

gically, planning for disruptions and main-

taining strong customer relationships will

be key to weathering potential challeng-

es. For more information contact Raj at

loanmantra.com.

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