Close

Brewers and Distillers Spent Grain, the Agricultural Twist by the FDA

Share on facebook
Share on twitter
Share on linkedin

Blog 26

Many brewers and distillers maximize their profit potential and reduce their biological waste output by selling their spent grains to farmers for livestock animal feed.  This has recently been subject to potential regulation by the federal government.  The U.S. Food and Drug Administration (FDA) published its Preventive Control Rule for Feed  October 29, 2013.  While the FDA’s Fact Sheet about the proposed rule can be found here.  The comment period lasts for 120 days and comments accordingly should be due on or around February 26, 2014.  More information is available on the FDA’s webpage.

This FDA rule could regulate hundreds if not thousands of breweries, distilleries and ethanol plants as “animal feed producers.”  While the rule does propose possibly exempting smaller companies, those with between $500,000 – $2.5 million dollars in feed sales are the suggested threshold for this regulation.

“Animal feed producers” facility would be required to have:

-A written food safety plan

-A hazard analysis

-Preventive controls for hazard(s) that are within reason to occur

-Recall plan for animal food with a hazard that is within reason to occur

-Monitoring

-Corrective actions

-Verification

-Associated record keeping

This proposed rule also would establish specific good manufacturing practices (GMP) for animal feed, to be implemented by all facilities that are deemed “animal feed producers.”

Any brewer or distiller currently supplying spent grain for feed should pay attention to these proposed rules.  Any participation in the comment period may assist in reducing the overall impact of these regulations or even assist in obtaining some exemption for the industry.  However, if nothing changes from what is proposed already then companies above the regulation’s final determination of the feed sales size threshold must either prepare their business model to comply with these rules or develop new methods of disposal for their spent grains.  If a new method of disposal is chosen, then that will trigger filing an amendment with TTB in regards to the process of production and disposal of wastes.

If you currently are selling or purchasing spent grains, and have any questions in regards to this, or would like guidance on how to comment to the FDA, please contact our office to see how we can assist you.

We're Here to Help

Dear friends in the alcoholic beverage industry,

As we as an industry, nation and planet collectively try to navigate this unprecedented period the coronavirus has brought us, I’d like you to know that we at Craft Beverage Consultants (the other CBC!) are here to answer any question you may have (or not know you have) about not just surviving this time but positioning yourself to thrive as soon as social distancing measures allow your business to function at full capacity again.

If you schedule a free 60-minute phone or video conferencing consultation with me or any of my 11 highly specialized colleagues, we’ll help you figure out any of your immediate and/or longterm business needs, or “everything but the staffing,” as we like to say. We’re not high-pressure sales kind of people, especially these days, so you don’t have to worry about fending off annoying pitches. Make an appointment on our website or Facebook page, or just call us the old-fashioned way at 314-768-0220.

Our experts have a combined 150 years in the alcoholic beverage industry, with deep knowledge in everything from sales and distribution, production, and regulatory compliance to marketing, package design, event planning, IT, (social) media, hospitality, and even values-based executive coaching. 

For example, I can coach you through this season when chain accounts have canceled their spring resets and distributors have drastically cut orders. Our director of business strategy and compliance can save you money – now – on excise taxes, caution you to avoid naming your beers in ways that risk alienating your buyers (Wuhan Wheat? Coronavirus Cream Ale? Groan. No.), and secure TTB approval for the tastefully named beers you do make. Our creative director and web team can get your e-commerce site up and running and launch a social media campaign that keeps you top of mind for current and future customers. Our director of storytelling can put you in front of the press so you can tell your story to your community. 

Once you’re ready, we can look forward together. Now is the time to talk about post-virus. We all suspect the legal landscape to look different. But how? And how do you prepare yourself in a way that positions you to charge out of the gate ready to maximize the potential and profit of whatever the “new normal” turns out to be? Please get in touch so we can talk about it. 

And if you’d like to feel us out beforehand, join me as I answer all of your questions about sales and distro during my free “Ask Me Anything” presentation May 5 at  — p.m. Central on the Craft Beer Professionals Facebook page. Also, at 11 a.m. Central on April 28 Director of Storytelling, Communications and Public Relations Tara Nurin appears as a special guest of “Ask Me Anything” to share unique – and free – ways to use the media to your advantage now and going forward.

CBC’s roster includes local and regional clients like Epic Brewing, Logboat Brewing, Piney River Brewing, SudWerk Brewing and Common Cider Company.  The agency was founded in 2014 by Jacob and Beth Halls; I, Rick Laxague, joined as a partner in charge of sales, marketing and distribution consulting in 2019. 

I have close to 20 years of experience, a bulk of which was with Crescent Crown Distributing in Arizona. My last role there was Area Sales Manager for the dedicated craft beer division, coaching and leading a sales team to be nationally recognized. In early 2014 I helped take a regional brewery national as their Director of National Accounts and increase that segment of their business from 30,000 cases to almost 300,000 cases in two years, an increase that equates to $4.8 million in IRI dollar sales. 

Co-founder Jacob Halls brings 17 years of experience in regulatory compliance, business strategy, marketing and craft brand management to the company. In his former position as craft brand manager for the N.H. Scheppers Distributing Company in Columbia, Missouri, Jacob helped lead his team to winning the 2016 Distributor of the Year award from New Belgium and to a nomination for the Brewers Association’s Distributor of the Year award. Jacob is also the founder and director of the South East Craft Beer Fest/Sampling & Educational Conference. Beth Halls is Director of Business Operations and Coordinator of Charity Operations for the festivals and events run by CBC, such as the South East Craft Beer Fest, MO Bacon & Bourbon, and many more. 

Again, please reach out to me or my partners for anything. I’m at [email protected] and CBC can be reached at (314) 768-0220 or at craftbeverageconsultants.com.

I look forward to meeting/talking soon.

Sincerely,

Rick Laxague