{"id":5988,"date":"2020-08-04T09:00:24","date_gmt":"2020-08-04T09:00:24","guid":{"rendered":"https:\/\/aviancetechnologies.com\/blog\/blog\/distilleries-raced-to-make-hand-sanitizer-for-the-pandemic-no-longer\/"},"modified":"2020-08-04T09:00:24","modified_gmt":"2020-08-04T09:00:24","slug":"distilleries-raced-to-make-hand-sanitizer-for-the-pandemic-no-longer","status":"publish","type":"post","link":"https:\/\/aviancetechnologies.com\/blog\/distilleries-raced-to-make-hand-sanitizer-for-the-pandemic-no-longer\/","title":{"rendered":"Distilleries Raced to Make Hand Sanitizer for the Pandemic. No Longer."},"content":{"rendered":"<p>\u00a0\u00a0 <\/p>\n<p>[responsivevoice_button rate=&#8221;1\u2033 pitch=&#8221;1.2\u2033 volume=&#8221;0.8\u2033 voice=&#8221;US English Female&#8221; buttontext=&#8221;Story in Audio&#8221;]<\/p>\n<h2>Distilleries Raced to Make Hand Sanitizer for the Pandemic. No Longer.<\/h2>\n<p><\/p>\n<div>\n<div class=\"css-53u6y8\">\n<p class=\"css-158dogj evys1bk0\">As the coronavirus pandemic shuttered bars and restaurants in March, Phil McDaniel\u2019s craft distillery in St. Augustine, Fla., stopped producing bourbon. Then he realized there was one alcohol-based product he could make that people would still clamor for: hand sanitizer.<\/p>\n<p class=\"css-158dogj evys1bk0\">His St. Augustine Distillery soon churned out the first of what became 10,000 gallons of the disinfectant. With sanitizer in short supply nationwide, he quickly sold and donated most of the supplies to hospitals and emergency responders along Florida\u2019s northeastern coast.<\/p>\n<p class=\"css-158dogj evys1bk0\">\u201cIn the beginning, it was just unbelievable, the sort of frenetic demand that was out there,\u201d said Mr. McDaniel, 62. \u201cIt was so gratifying to us to be able to come in and help.\u201d<\/p>\n<p class=\"css-158dogj evys1bk0\">But as virus cases have spiked again in Florida and other states, Mr. McDaniel said he had no plans to make more sanitizer. That\u2019s because the early demand he experienced tailed off in June when large brands like Purell were able to pump out more product. The price for sanitizer, which had hovered at $50 a gallon, plunged to around $15 a gallon. Today, he still has about 1,000 gallons of it, spread between 250-gallon square totes of finished product and 50-gallon drums of ingredients, sitting in a warehouse.<\/p>\n<\/div>\n<\/div>\n<div>\n<div class=\"css-53u6y8\">\n<p class=\"css-158dogj evys1bk0\">Mr. McDaniel is one of more than 800 craft distillers across the United States who leapt into action to help in the first wave of the pandemic, urged on by federal agencies, but who are now hesitant to invest more time and money into those efforts. With demand for sanitizer fluctuating, distillers have faced unforeseen costs and excess supplies that they could not get rid of.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div>\n<div class=\"css-53u6y8\">\n<p class=\"css-158dogj evys1bk0\">At the same time, the economics of the $3.2 billion craft beverage industry have deteriorated. Craft distilleries are often fragile, mom-and-pop operations with fewer than a dozen employees and their owners\u2019 life savings invested in the business. Now <a target=\"_blank\" class=\"css-1g7m0tk\" href=\"https:\/\/www.nytimes.com\/2020\/04\/23\/dining\/drinks\/craft-distillers-coronavirus.html\" title=\"\" rel=\"noopener noreferrer\">battered by months of lost liquor sales, many cannot afford to spend more on making sanitizer when all they really want to do is get back to making whiskey to survive.<\/p>\n<p class=\"css-158dogj evys1bk0\">Their conundrum shows how life has become more complicated as the pandemic has persisted. What had been a no-brainer good Samaritan decision to help local communities and nurture a new business has instead devolved into a messy financial calculus as the hardships of the crisis continue piling up.<\/p>\n<p class=\"css-158dogj evys1bk0\">\u201cIt feels a little bit like no good deed is going unpunished right now,\u201d said Spencer Whelan, the director of the Texas Whiskey Association, a trade group representing some of the state\u2019s distillers.<\/p>\n<\/div>\n<\/div>\n<div>\n<div class=\"css-53u6y8\">\n<p class=\"css-158dogj evys1bk0\">The hand sanitizer industry has long been dominated by large companies like Clorox and Gojo Industries, the maker of Purell. As registered drug manufacturers, they are subject to rigorous Food and Drug Administration inspections and reviews that allow them to produce the disinfectant.<\/p>\n<p class=\"css-158dogj evys1bk0\">But the market was shaken up in March when hand sanitizer became scarce after being snapped up by hospitals, emergency medical workers and <a target=\"_blank\" class=\"css-1g7m0tk\" href=\"https:\/\/www.nytimes.com\/2020\/03\/14\/technology\/coronavirus-purell-wipes-amazon-sellers.html\" title=\"\" rel=\"noopener noreferrer\">profiteers. That month, the F.D.A. and the Alcohol and Tobacco Tax and Trade Bureau issued temporary guidance allowing businesses to start making sanitizer without needing to undergo the typical inspections and oversight.<\/p>\n<p class=\"css-158dogj evys1bk0\">For distillers, it turned out that making hand sanitizer was fairly straightforward. They already had the distilled spirits permits needed to handle ethanol, the type of alcohol used both for liquor and as a sanitizer ingredient. They also had the tanks, blending and bottling equipment necessary for production.<\/p>\n<p class=\"css-158dogj evys1bk0\">The prospect of replacing liquor revenue with sanitizer sales piqued the interest of Jonathan Eagan, a co-owner of the Arizona Distilling Company in Tempe, Ariz. He spent $50,000 on alcohol to produce the disinfectant in the spring, and said he quickly sold enough of it to make up for two months in lost liquor sales.<\/p>\n<\/div>\n<\/div>\n<div>\n<div class=\"css-53u6y8\">\n<p class=\"css-158dogj evys1bk0\">That money was crucial, given that bars, restaurants and tours \u2014 the distillers\u2019 main sources of income \u2014 were hobbled. In an <a target=\"_blank\" class=\"css-1g7m0tk\" href=\"https:\/\/www.distilledspirits.org\/news\/new-survey-shows-covid-19-creating-severe-financial-hardships-for-craft-distillers\/\" title=\"\" rel=\"noopener noreferrer\">April survey of 118 distilleries in 35 states by the Distilled Spirits Council, an advocacy organization, respondents said 43 percent of their employees had been laid off and sales had plummeted 64 percent. Two-thirds said they didn\u2019t expect to be able to stay open in another six months.<\/p>\n<p class=\"css-158dogj evys1bk0\">But even as distillers ramped up sanitizer production, that lifeline also started petering out. As panic-buying of the disinfectant leveled off and production among larger companies stabilized, \u201cthe business just kind of dried up\u201d in the last few weeks, said Mr. Eagan.<\/p>\n<\/div>\n<\/div>\n<div>\n<div class=\"css-53u6y8\">\n<p class=\"css-158dogj evys1bk0\">Now as Arizona deals with <a target=\"_blank\" class=\"css-1g7m0tk\" href=\"https:\/\/www.nytimes.com\/interactive\/2020\/07\/09\/us\/coronavirus-cases-reopening-trends.html\" title=\"\" rel=\"noopener noreferrer\">new virus cases, much of his remaining 1,000 gallons of sanitizer has sat idle. He blamed the changing demand on the \u201cvacillating\u201d by officials over the pandemic\u2019s severity and their \u201cflip-flopping\u201d over which businesses could reopen \u2014 and stay open.<\/p>\n<p class=\"css-158dogj evys1bk0\">\u201cThe bigger frustrating issue is the fits and starts,\u201d he said. \u201cA lot of these bars and restaurants don\u2019t know if they\u2019re open today, if they\u2019re open tomorrow.\u201d<\/p>\n<p class=\"css-158dogj evys1bk0\">To help distillers, advocacy groups like the Distilled Spirits Council have lobbied Congress to provide economic relief. They also want the F.D.A. to specify how long it will allow sanitizer production by distillers to continue, to give the businesses some certainty.<\/p>\n<p class=\"css-158dogj evys1bk0\">Some states, like California and many of those in New England, have also temporarily suspended laws that prohibit distilleries from directly shipping alcohol to consumers. In states where those rules haven\u2019t been changed, some distillers said their willingness to make and donate hand sanitizer during a crisis merited a reprieve from the shipping restrictions.<\/p>\n<p class=\"css-158dogj evys1bk0\">Distillers \u201chave absolutely done their civic duty,\u201d said Mr. McDaniel, who is also president of the Florida Distillers\u2019 Guild, an advocacy group. Now \u201cthey\u2019re all on life support.\u201d<\/p>\n<p class=\"css-158dogj evys1bk0\">For some distilleries weighing whether to continue sanitizer production, the decision was easy: no way.<\/p>\n<p class=\"css-158dogj evys1bk0\">Barry Butler, the owner of Tarpon Springs Distillery in Tarpon Springs, Fla., had teamed up with a nearby rum distillery to give away about 15,000 gallons of sanitizer and had made $40,000 by selling 10,000 gallons more. But when demand plummeted in June, he returned to producing moonshine and ouzo, a Greek liquor.<\/p>\n<\/div>\n<\/div>\n<div>\n<div class=\"css-53u6y8\">\n<p class=\"css-158dogj evys1bk0\">\u201cIt kept the lights on, it kept the guys working and employed when we were shut down for tours and tasting,\u201d Mr. Butler said of making sanitizer. But \u201cas a long-term economic solution for a distillery, it\u2019s not a way to make money.\u201d<\/p>\n<p class=\"css-158dogj evys1bk0\">Mr. Butler said he dealt with equipment problems, too. The F.D.A.\u2019s <a target=\"_blank\" class=\"css-1g7m0tk\" href=\"https:\/\/www.fda.gov\/media\/136118\/download\" title=\"\" rel=\"noopener noreferrer\">sanitizer guidelines require distillers to add a bittering agent like the compound Bitrix to ensure people don\u2019t try to drink the finished product.<\/p>\n<p class=\"css-158dogj evys1bk0\">Bitrix is so strong, Mr. Butler said, that any distillery equipment used to make sanitizer was ruined. \u201cAnything you use for that is now dead forever,\u201d he said, adding that he threw away stainless steel bottling hoses that had been contaminated.<\/p>\n<\/div>\n<\/div>\n<div>\n<div class=\"css-53u6y8\">\n<p class=\"css-158dogj evys1bk0\">Not all distillers have given up on sanitizer. Matt Allen, co-owner of <a target=\"_blank\" class=\"css-1g7m0tk\" href=\"http:\/\/darkdoorspirits.com\/\" title=\"\" rel=\"noopener noreferrer\">Dark Door Spirits in Tampa, said he also began making sanitizer in the spring and has sold and given away at least 20,000 gallons to eight cities, 16 counties, the Federal Aviation Administration and the Postal Service.<\/p>\n<p class=\"css-158dogj evys1bk0\">When demand declined, he began working to lock in contracts with local hospitals to buy a guaranteed amount of product going forward.<\/p>\n<p class=\"css-158dogj evys1bk0\">\u201cWe just need some sort of gauge of long-term commitment,\u201d Mr. Allen said.<\/p>\n<p class=\"css-158dogj evys1bk0\">Mr. McDaniel\u2019s St. Augustine Distillery, which opened in 2014, is known for its Florida cane vodka, rum made from Florida molasses and a variety of bourbons, which are aged for three or more years. One of the state\u2019s larger craft distilleries, it has attracted tens of thousands of tourists every year to its headquarters, which once housed an ice manufacturing plant.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div>\n<div class=\"css-53u6y8\">\n<p class=\"css-158dogj evys1bk0\">The business, which initially lost money, has been profitable since the bourbon finished aging nearly four years ago, Mr. McDaniel said. But when the pandemic hit, the packed tasting room and tours became just a memory. In April, Mr. McDaniel slashed advertising and furloughed about 15 of his more than 45 employees.<\/p>\n<p class=\"css-158dogj evys1bk0\">\u201cIt\u2019s terrifying,\u201d he said.<\/p>\n<p class=\"css-158dogj evys1bk0\">Mr. McDaniel said his sanitizer made enough to cover the cost of what he donated and a little more. In June, when demand dropped off, he stopped making it.<\/p>\n<p class=\"css-158dogj evys1bk0\">St. Augustine Distillery is now producing bourbon again \u2014 but it is seeing only half its normal amount of liquor sales.<\/p>\n<p class=\"css-158dogj evys1bk0\">\u201cAt the end of the day, our core business is making really great alcohol,\u201d Mr. McDaniel said. \u201cTo be able to get back to business and have demand for that and to sell it profitably is what we\u2019re all looking for right now.\u201d<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div class=\"post-item-metadata entry-meta\">\n<p class=\"has-background has-very-light-gray-background-color\">Disclaimer: Content may be edited for style and length.\u00a0<a class=\"newsium-categories category-color-1\" href=\"https:\/\/www.nytimes.com\/2020\/08\/04\/business\/distilleries-hand-sanitizer-pandemic.html\" target=\"_blank\" rel=\"noopener noreferrer\">Story Source<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0\u00a0 [responsivevoice_button rate=&#8221;1\u2033 pitch=&#8221;1.2\u2033 volume=&#8221;0.8\u2033 voice=&#8221;US English Female&#8221; buttontext=&#8221;Story in Audio&#8221;] Distilleries Raced to Make Hand Sanitizer for the Pandemic. No Longer. As the coronavirus pandemic shuttered bars and restaurants in March, Phil McDaniel\u2019s craft distillery in St. Augustine, Fla., stopped producing bourbon. Then he realized there was one alcohol-based product he could make that &#8230; <a title=\"Distilleries Raced to Make Hand Sanitizer for the Pandemic. No Longer.\" class=\"read-more\" href=\"https:\/\/aviancetechnologies.com\/blog\/distilleries-raced-to-make-hand-sanitizer-for-the-pandemic-no-longer\/\" aria-label=\"Read more about Distilleries Raced to Make Hand Sanitizer for the Pandemic. No Longer.\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":5989,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1,30],"tags":[],"class_list":["post-5988","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-technology"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Distilleries Raced to Make Hand Sanitizer for the Pandemic. No Longer. - Aviance Technologies<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Distilleries Raced to Make Hand Sanitizer for the Pandemic. No Longer. - Aviance Technologies\" \/>\n<meta property=\"og:description\" content=\"\u00a0\u00a0 [responsivevoice_button rate=&#8221;1\u2033 pitch=&#8221;1.2\u2033 volume=&#8221;0.8\u2033 voice=&#8221;US English Female&#8221; buttontext=&#8221;Story in Audio&#8221;] Distilleries Raced to Make Hand Sanitizer for the Pandemic. No Longer. As the coronavirus pandemic shuttered bars and restaurants in March, Phil McDaniel\u2019s craft distillery in St. Augustine, Fla., stopped producing bourbon. Then he realized there was one alcohol-based product he could make that ... 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No Longer. - Aviance Technologies","robots":{"index":"noindex","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"og_locale":"en_US","og_type":"article","og_title":"Distilleries Raced to Make Hand Sanitizer for the Pandemic. No Longer. - Aviance Technologies","og_description":"\u00a0\u00a0 [responsivevoice_button rate=&#8221;1\u2033 pitch=&#8221;1.2\u2033 volume=&#8221;0.8\u2033 voice=&#8221;US English Female&#8221; buttontext=&#8221;Story in Audio&#8221;] Distilleries Raced to Make Hand Sanitizer for the Pandemic. No Longer. As the coronavirus pandemic shuttered bars and restaurants in March, Phil McDaniel\u2019s craft distillery in St. Augustine, Fla., stopped producing bourbon. Then he realized there was one alcohol-based product he could make that ... 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