Timing is Everything?

It took several years of making kombucha and another couple years figuring out what exactly needs to be done to start a commercial beverage business to launch Deane’s Kombucha. Staring at ground zero, this was at many times a daunting task. But I stumbled my way through a ton of paperwork and many phone calls to make sure I was getting all the proper licensing and approvals.

You can imagine my shock when the whole alcohol thing happened. I may have been a bit naïve, but I guess I figured this minor detail would have been figured out already, since kombucha has been a national best seller for years. But of course it had not.

So my timing was pretty poor on that front. However, when GTs/Synergy was pulled from the shelves last summer, all of a sudden all the stores that previously didn’t have shelf space started calling me. (GT is quite savvy with his 17 or so different varieties – squeezing out competing brands for cooler space).

So I was caught in an interesting situation. Samples of my kombucha had been sent to the TTB for testing a couple months prior, but I was still awaiting the results and subsequent guidance. Other kombuchas were still flowing on the shelves. After a bit, I decided to go for it. I wanted to get my product out there and see if it was as good as me and my friends thought it was. I also wanted to see if my business plan made sense.

I have found that a business plan is relevant for about a week. And cash flow can be very tricky, especially if you intent to pay yourself. That can be even trickier, because in the growing stages, you really need that cash to re-invest. Anyway, I decided to go full throttle last summer, take advantage of the shelf space, and find out if everything I believed about my product and plan was indeed true.

We invested in 5 more oak barrels, bringing our total to 8 thirty gallon barrels. I ordered more cardboard, bottles, and ingredients. I hired three employees and we put the pedal to the metal. And not only did we have a blast, we moved a ton of kombucha! It was great. But I knew that the floor could fall from under us at anytime. And when I got the official stance from the TTB in September, it wasn’t a total shock, but sad indeed.

I’m not sure I could have made it through the second round of licensing with the TTB and Minnesota Alcohol and Gaming Commission without the experience of last summer. It certainly helps to have as much confidence as you can.

2 Comments to Timing is Everything?:

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Catherine on Sunday, June 05, 2011 10:32 AM

Hello I am new to your blog and was wondering if you could share the steps it took to start your business (licensing etc). I live in southern wv and brew at home but am very interested in starting a business here since virtually no one else sells it in the area. Thank you so much I look forward to your advice! Namaste

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	Bryan Deane Bertsch on Tuesday, June 07, 2011 1:38 PM Catherine, Thanks for your comments. Yes...more details to come on licensing requirements etc. I'll try to post something this week.

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