Although launching a spirits brand still requires a significant amount of capital, it also once required building out a distillery. Today, a new model has emerged, built on strategic partnerships, rather than just brick-and-mortar. This approach allows founders to focus on what they do best: building a brand and driving sales, while expert partners handle the complex work of production and compliance.
This blueprint, drawn directly from the experiences of a spirits brand founder and his partners, outlines the modern path to scaling a spirit brand, from a one-gallon test batch to national distribution.
Using a Partnership Model with a Contract Distiller
Before considering sales, a spirits brand needs a consistent, high-quality product. This is where a contract distiller can become one of the most critical partners in the process.
What is Contract Distilling? (And What It Isn’t)
As Susan Johnson, Co-Owner of Denning’s Point Distillery, explains, it’s crucial to understand the distinctions between contract distilling and other options available to spirits entrepreneurs:
- Contract Distilling: A full-service partnership where the distillery creates your liquid from scratch, handling recipe development, production, filtration, and often bottling and labeling. This results in a unique, proprietary product.
- Co-Packing: The simpler act of bottling and labeling a finished liquid provided by the spirits brand.
- White Labeling: Buying a pre-existing, off-the-shelf spirit and slapping your label on it. This often offers the least brand differentiation.
“For us, contract distilling is creating the liquid from start to finish,” says Susan. “It’s really important to clarify what contract distilling isn’t, as it’s often misconstrued with co-packing.”
How to Choose the Right Distillery Partner
Susan also outlines four key criteria for selecting a production partner:
- Capabilities: Can they expertly produce the specific spirit an entrepreneur wants?
- Minimums: Do their production run sizes align with the brand’s budget and sales goals?
- Scalability: Can they double or triple production when demand grows?
- Communication & Trust: Are they responsive, transparent, and supportive? “A good contract distiller doesn’t just make your product. They guide you,” Susan notes.
Scaling from Test Batch to Production Run
Once a partner is chosen, the real challenge begins: scaling a small-batch recipe without losing the qualities that made it special. This is where many brands stumble.
Dan Fenyo, Head Distiller at Denning’s Point, identifies the most common roadblock: “Often, we deal with clients who are expecting the process to be purely multiplicative,” Dan says. You have one gallon; you want to make 500 gallons multiplied by 500. I wish it were that easy.”
The reality is far more complex. Ingredients behave differently at scale, and processes that worked for a few bottles may not be possible for hundreds.
The Keys to Successful Scaling
According to Dan, ingredient sourcing must be consistent and feasible at large volumes for a successful scale-up. “It’s really lovely to individually peel oranges, but as you get into much larger batches, that stops being quite so viable.”
Suppliers must also ensure that they make packaging decisions as early as possible. Secure bottles, labels, and closures early to avoid costly delays and redesigns later.
Of course, as Susand also pointed out, keeping a strong line of communication is key. “My most gratifying conversations happen with clients who encounter issues and with whom we can work with to see those through,” says Fenyo.
A Case Study in Smart Growth
A concept is one piece, but real-world execution is another. Stew Edge, Owner of Avontuur Gin, lived this process, taking his concept from a single bottle to 28+ stores in New York.
“For me, scaling the recipe up was always going to be the hardest part,” Stew admits. “But with Denning’s Point expertise and knowledge, the final product actually turned out great and even better than we could hope for.”
His goal was to find partners who shared his passion for quality and could scale with him. Denning’s Point handled the entire production process, allowing Stew to focus on sales and marketing.
Access to Distribution with Park Street
Like many founders, Stew found traditional distribution to be a major hurdle. “You basically need to have proven sales in a hundred accounts or a large marketing budget, which obviously we didn’t have to start with.”
His solution was Park Street. “Park Street offers us an affordable route-to-market. They allowed us to start in just one state.” This “test and scale” approach provided Avontuur Gin with a low-risk way to validate its model. Park Street managed the immense complexity of state licensing, compliance, inventory, and deliveries, providing Stew with the crucial sales data needed to grow.
Avontuur’s partnership model delivered tangible results:
- Launched in August 2024 in one liquor store.
- Expanded to 28 stores throughout NYC, Upstate, and Long Island.
- Increased production yield by 20% on the second batch through process refinement.
- Began expanding into bar and restaurant accounts.
“The main thing I’ve learned is to focus on your goals and make sure you get the right partnerships in place for the long term,” Stew concludes. “The right partners make all the difference.”
Using a Partnership Model with a Contract Distiller Transcript
Susan Johnson (0:03)
Hi, I’m Susan Johnson, co-owner of Denning’s Point Distillery in Beacon, New York. We’ve been a craft distillery for over 11 years, and in that time we’ve been creating our own award-winning line of spirits. But beyond our own bottles, we’ve been partnering with visionaries, entrepreneurs, and established companies to help them bring their own spirits lines to life. That’s called contract distilling.
Over the years, we’ve worked with clients launching everything from gin to brandy to bottled cocktails and complex liqueurs. Some come to us with a completed recipe, and some come with just an idea. Either way, our role is to turn that vision into a real, market-ready spirit.
In its simplest form, contract distilling means a client hires us to produce their spirit. That might involve recipe development, blending, bottling, labeling, and shipping — and along the way, we also handle the complex world of compliance, both federal and state.
It’s important to clarify what contract distilling isn’t, because it’s often confused with co-packing. Contract distilling means creating the liquid from start to finish — recipe development, production, filtering, the whole process. Co-packing, by contrast, is simply bottling and labeling a finished liquid; it’s more packaging than production. Then there’s white labeling, which is different again — that’s when a brand buys a pre-made spirit and adds its own label. That’s common in whiskey, but it doesn’t give you something unique or proprietary the way contract distilling does.
Susan Johnson (1:43)
If you’re thinking about launching a brand, how do you choose the right contract distillery? There are a few key considerations.
The first is capabilities. Can the distillery competently produce the spirit you want? Do they have experience in your category — gin, whiskey, liqueurs, bottled cocktails — and the technical expertise to handle the specific needs of your product?
The second is minimums. Every distillery has minimum order quantities. You’ll want to make sure their production runs align with your sales goals and your budget.
The third is scalability. It’s one thing to make your first batch — it’s another to double or triple production. When demand grows, will this distillery be able to grow with you? That’s a critical point.
And finally, communication and trust — which is perhaps the most important of all. Launching a spirit is not a one-and-done transaction. It’s a detailed, long-term process, and you’ll be in constant communication with your distiller. You’ll want to know they’ll be responsive, transparent, and supportive. A good contract distiller doesn’t just make your product — they guide you through the maze of regulations and logistics.
Susan Johnson (2:57)
Now let’s talk about some common pitfalls.
The first is choosing on price alone. Expertise matters. If your recipe involves tricky ingredients like sugars, botanicals, or barrel aging, you want a partner with the skill to get it right. A low-cost option that lacks experience can end up costing you far more in the long run.
The second is slipping timelines. This process takes longer and is more complicated than most people expect. Between test runs, formula approvals, label approvals, supply chain delays, and vendor timelines, you’ll need patience. Working with a distillery that sets clear expectations upfront will relieve a tremendous amount of stress.
Susan Johnson (3:38)
So why does all of this matter? Because contract distilling is more than just getting liquid into a bottle — it’s about creating a partnership that can carry your brand forward.
The right distiller isn’t just a vendor. They’re part of your brand’s DNA. That’s why I always encourage clients to think long term. Don’t view your first batch as a one-off transaction — think of it as the start of a strategic alliance. You want someone who can help you not just launch, but expand into new states, scale production, and grow your brand’s presence.
And finally, choose someone whose personality and ethos align with your own. This industry is complex, highly regulated, and often unpredictable. Having a distillery you trust — and genuinely enjoy working with — makes all the difference.
At Denning’s Point Distillery, we’ve seen firsthand how the right partnership can turn an idea into a thriving brand. And that’s what makes contract distilling so rewarding: helping other people’s visions take shape and succeed in the marketplace.
Scaling from Test Batch to Production Run Transcript
Dan Fenyo (0:01)
Hi, I’m Dan Fenyo, lead distiller here at Denning’s Point Distillery. Today I want to talk a little about scaling your recipe from a test batch to a full production run.
In my role as lead distiller, it’s really important to us to maintain — or even exceed — the quality of your product as you grow your brand. The biggest roadblock we see in that process tends to be a misunderstanding of how complex that growth actually is.
So often we work with clients who expect the process to be purely multiplicative: you have one gallon, you want to make 500 gallons, so you just multiply by 500. I wish it were that easy — but it’s almost always much more complicated than that. Our expertise is in making sure your batch comes out perfectly and exceeds your expectations all the way through. That’s really one of the things that separates a genuine contract distilling relationship from simple co-packing — it introduces a bit more complexity, but it’s worth it.
The other things we emphasize for our clients are the importance of consistent ingredient sourcing, and the need to tweak your formula as you scale to make it viable at larger volumes. It’s wonderful when you have the opportunity to hand-peel oranges or use very specific small-batch ingredients, but as you move into much larger batches, that stops being feasible. As much as we’d all love that granular attention to detail, we need to ensure that every element of your recipe can actually work at scale.
Dan Fenyo (1:48)
Another thing we really like to emphasize is the importance of making the big, broad decisions early — while still maintaining some flexibility throughout the process. Packaging is one of the biggest of these. It’s essential that you choose a representation for your brand that will stay memorable and genuinely reflect the quality of what you’re making. To that end, we strongly recommend nailing down your bottle shape and size, as well as your labels and how they’re applied, as early as possible. Getting these locked in early cuts down on confusion, redesigns, and costly reorders down the line.
Dan Fenyo (2:29)
Of course, we also have to account for operational realities — unexpected difficulties that sometimes arise, things like supply chain issues. These are unfortunately inevitable, but they are things we can plan for and solve. The single biggest factor in all of this is ensuring strong communication between the client and the distillery.
As a lead distiller, my most gratifying conversations are with clients who run into issues and work through them with us to reach a satisfying conclusion. The earlier you plan out the details, the smoother your launch will go. No launch goes entirely smoothly — but we can set ourselves up for success by planning early and communicating well.
A Case Study in Smart Growth Transcript
Stew Edge (0:01)
Hi, I’m Stuart Edge, owner and founder of Avontur Gin. We wanted to create a new, exciting gin — bursting with flavor, fresh citrus, warm spices — a gin that evokes the spirit of adventure. One that’s smooth enough to sip, but bold enough to shine in cocktails.
We approached Denning’s Point in 2024 to help turn our one-bottle recipe and concept into 1,500 bottles of reality. For me, scaling the recipe up was always going to be the hardest part, but with Denning’s Point’s expertise and knowledge the final product turned out great — even better than we’d hoped for.
When we were looking for a distillery, we wanted one that shared our passion for quality and handcrafted spirits, and that could also scale production as we grew. Denning’s Point not only distills our gin — they also bottle and label it for us, which is fantastic. All we have to do is make sure we get everything to them on time, which makes great communication between us absolutely essential.
Stew Edge (1:03)
From Denning’s Point, all our cases go directly to the Park Street warehouse. Traditional distribution is difficult for small brands to access — you basically need proven sales across 100 accounts or a large marketing budget, which we obviously didn’t have at the start. Park Street offers us an affordable route to market. They allowed us to launch in just one state, and as we scale we can add more states over time.
Park Street holds the licensing for all the states we need to enter, which for us is a huge advantage. They also manage our inventory, all deliveries to stores, and invoicing to our suppliers, and provide a monthly sales report. They handle state licensing and compliance, and have a team that helped us navigate the complexity of all the regulations in the liquor world — and there are a lot of them. All of this allows us to focus on sales and growing our brand.
Stew Edge (2:02)
We launched Avontur in August 2024 in one liquor store on the Upper West Side. We’re now in 28 liquor stores throughout New York City, upstate New York, and Long Island, and we’ve just started exploring getting into bars and on-premise locations with Denning’s Point. We’ve also just completed batch number two, where we fine-tuned the process and increased our yield by 20%.
Stew Edge (2:25)
The main thing I’ve learned is to focus on your goals and make sure you get the right partnerships in place for the long term. The right partners make all the difference.
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