FAQs

The timeline for completing the project will vary based on several factors, including the complexity of your product, the time required for R&D, compliance, and how quickly materials can be sourced and delivered. The true lead time of a project is directly tied to your preparedness as a brand. If you can come to the table prepared with as much knowledge, information, and decision-making readiness as possible, the process will go much faster.

If you don't know what you want, take forever to make decisions, or reverse those decisions, and need a lot of guidance...the process will take much longer and that is OK! We are here to help.

You will need to make decisions along the way regardless of how much you prepare and everyone will learn a few things.

Here's a rough estimate/roadmap based on the outlined steps:

1. Product Conception & Initial Consultation: Immediate

2. Formalizing the Relationship: 5-10 business days

3. Development & Formulation: 4-6 weeks

4. Compliance: 2-4 weeks (can overlap with Development & Formulation)

5. Procurement Stage: 3-6 weeks (can begin early, depends on material availability)

   1. See lead time chart for additional information - custom takes longer than stock.

6. Production lead time (getting on the schedule): 0-4 weeks

   1. This is dependent on material arrival and inspection.

7. Production: Variable, depending on the quantity and complexity of the product

   1. Startup-sized runs are usually done within a day.

8. Shipping to Distribution Network: ASAP after production. Our centralized location cuts down on shipping time.

9. Estimated Total Time:

   Assuming some stages overlap, the project could take approximately 12 to 20 weeks from start to completion, depending on the specific details and complexity of your project.

   1. Have we gotten projects to the market faster? Yes, absolutely - our record was within 3 weeks, but there were several factors that made that work. Have we had projects take longer than expected, yes! A lot depends on how quickly the client makes decisions and how quickly we can source materials.

Expedited Options: If you’re in a hurry, we offer expedited production options to meet tighter deadlines for additional costs.

Additional Custom Processes:

• Custom fermentation: Up to 2 weeks.

• Custom distillation: 2-4 days.

• Custom blending: 2 days - 4 weeks or longer

• Simple proof down: 2 days

• Custom proof down: variable

• Barrel Finishing: This can vary widely, depending on your needs. We can even hold barrels for multiple years if required.

• Three Tiers:

  • Manufacturer/Supplier: That’s us—Cardinal Copacking.

  • Distributor: Think RNDC, Southern, Johnson Brothers, or Control States.

  • Retailers: Bars, restaurants, liquor stores, or state-run stores.

• Rules:

  • You can generally only operate in one tier, meaning you can’t make and distribute your own alcohol, with some exceptions.

  • Cardinal, as the manufacturer, will sell/ship your product to a distributor, who will then sell it to a retailer, who will sell it to the customer.

• Challenges:

  • Finding a distributor can be tough; distributors are consolidating and often prefer established brands with large marketing budgets.

  • The craft space is getting crowded, making it harder for new brands to break in.

• Starting Out:

  • We suggest starting with a small distributor and working your way up to a larger one.

  • Libdib: A good platform associated with RNDC that can help launch your brand before moving into a larger distributor.

• Quick Tips:

  • Visit local liquor stores, bars, and restaurants and ask who their favorite small distributor is.

  • Get samples of your product (we can help) and ask these places if they’d purchase a case.

  • Offer to do a tasting, a launch event, or bring in a group to support your product.

  • Secure about 80 cases/one pallet of orders before approaching distributors.

  • Show distributors your orders and planned marketing spend—this can help them commit to purchasing a couple of pallets.

• Important Note: Distributors typically fulfill orders rather than actively selling your product, so your business plan should focus on driving sales efforts yourself.

• Flexibility: We’re flexible, but here’s a general guide:

  • Bottles: Starting with 160 cases of six bottles is a good place to begin—this equals about one pallet of bulk glass bottles (around 1,000 bottles).

  • Cans: Minimum order is currently 3,000 gallons per SKU, which creates approximately 1,120 cases of 24 cans at 12 oz.

• Smaller Orders: We can produce smaller quantities, but there will be an additional charge for the line time.

• Self-Distribution: Possible in a few states like California, New York, and Florida, but you’ll need to handle permitting and paperwork.

• Help Available: Companies like Park Street can assist with the process, though there’s a fee involved.

• Brokers: You can also look up brokers in those states who might be helpful.

• Shipping Direct: Cardinal can’t ship directly to consumers for you, but there are other options.

• Online Sales Platforms:

  • Speakeasy

  • BevStack

• Additional Resource: For more info on DtC opportunities, check out resources like Park Street: Direct-to-Consumer Opportunities.

• We’ve worked with many consultants over the years and can recommend a few who are top-notch.

• Specialties: Consultants can help with branding, flavoring, sales, production, distribution, and compliance.

• When to Hire: While you can handle a lot yourself, the right consultant at the right time can save you both time and money.

• Design Choices: When you're designing a new product, the choices you make can really affect your costs, with each decision having its own pros and cons. For example, choosing custom or hand-written labels can make your product stand out and feel more special, but it also means higher production costs because of the extra labor and materials involved.

• Economies of scale: Another big factor is how you buy and store your raw materials. Buying in bulk can save you money per unit, but you’ll need to be smart about storage and inventory management to avoid extra costs from warehousing or spoilage. So, while bulk buying is cheaper upfront, it requires careful planning.

• Balance: In the end, it’s all about finding the right balance. Premium design choices can be worth the extra cost if they fit your brand, and bulk buying can save money if you manage it well. The key is to make decisions that keep your product both high-quality and profitable.

• Options:

  • We can source alcohol for you or custom distill something unique.

  • Most Clients: Involves sourced whiskey or neutral spirits blended with other ingredients.

  • Custom Distilling: We can create custom gin, whiskey, rum, moonshine, etc. It’s more expensive but allows for a truly unique product.

• Special Raw Ingredients: If you have a unique ingredient not commonly distilled in the U.S., we’re up for the challenge—just provide details like starting sugar content, usual fermentation time, and yeast used. We will then begin an R&D project to create your product.

• Flavor and RTD Development:

  • We can help, and do this regularly for clients.

  • Sometimes, for more complex flavors, we partner with flavor houses, chemists, or recipe developers.

• Straightforward Products: We can likely handle simpler products like Cherry Vodka in-house quickly.

• Complex Flavors: For more intricate recipes (like tart cherry blossom vodka with basil and lime), the research and development process will take some time. Or, you could work with a specialized recipe developer. We’ll guide you through the process and offer recommendations to scale up recipes as needed.

Financials can vary widely depending on the specifics of your product, but here’s a rough guide to help you understand the potential costs and profits:

• Bottle Price: The cost of a bottle can fluctuate greatly based on the type of spirit and the packaging choices. A round bottle with a single label and simple closure will generally be cheaper to produce than a custom bottle with features like a tax stamp, neck band, wax dip, or hang tag. Cardinal can quickly work up an estimate and provide guidance based on your needs.

• Distributor and Retailer Margins:

  • Distributors typically aim to make 26-27% on the products they sell to retailers.

  • Retailers generally like to make about 30% on the products they sell to consumers.

• Your Share (Brand Owner): We suggest that as the brand owner, you should plan to take home 30-50% to cover your sales and marketing efforts.

Here’s a basic example of how the numbers might break down:

• Production Cost: Let’s say Cardinal can produce a bottle of spirits for $12, including everything—spirits, packaging materials, labor, taxes, etc.

• Selling to Distributor: You would sell that bottle to the distributor for $18.00. The distributor usually covers shipping and may charge you for samples, incentives, billbacks, and other similar costs.

• Distributor to Retailer: The distributor would then sell the bottle to a retailer for about $22.68.

• Retailer to Customer: Finally, the retailer would sell the bottle to the customer for around $29.48, or they might round it up for easier pricing. It might be $29.99 on the shelf.

This example is just a rough estimate to give you an idea of how the financials might look. It’s crucial to discuss these numbers with all parties involved—distributor, retailer, and Cardinal—to figure out what’s viable for your specific product.