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.”
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