Economics of Home Distilling and why i got started

[EricTheRed]

Didn't want to hijack Bushmen's thread

Friends of ours got into making Gin about 5 years ago. I tasted some (not a gin drinker) and didn't like it at all.
So, i sort of shelved it.
But, hard tack prices were getting to the point of stupid, i seriously reconsidered.

Then Covid hit, and the government here shut down ALL liquor sales for months (didn't help at all though)

So, i decided to get a small still (5L Alembic) and try it out. Made beer in times gone past and still make (but i cheat and use LME - works out to same price as AG)

Did a few ferments, some sugar, some partial grain, some fruits, etc., but the one and done's were killing me! 2 weeks of work to make a single bottle of booze

Then i stumbled across HD and read about Stripping runs and Spirit runs - sounded a better option to me, so started doing that. Better.
Then i read about making proper cuts (the instructions with the still were volume based cuts - ya ya i know) and a lightbulb came on.
Until this point, the product was okish, but nothing i would share.
Kiwi's guide to cuts changed that.

It was time to think a little bigger. Looked at various commercial offerings, shat myself at the price - hunted around a bit, found a suitable SS canner and started building up. Thought about going 50L, but the weight of the boiler put me off - settled for a 30L - works for me
First runs were simple pot still mode and a flake stand. Got tired of that in a hurry, put a riser on and added a shotgun.
Long story short, my product, iissm, was getting interesting - i would share it.

And all the while reading reading reading (and occasionally asking a stupid question - sorry)

This journey started as a way to make my tipples a little less costly, and if they tasted good - bonus. Was never planning to replace commercial, just supplement. But.... I haven't bought a bottle of commercial in more than a year!

So, now i have converted to AGs for my whiskeys, still do Sugar and Oatmeal for neutrals, vodka, brandies, gins, berry mascerations, limencello, oracello, etc.
No longer so much about saving a few bucks (a lot actually) - and more about the journey of discovery.

But back to the economics. My go to whiskey pre-covid was a Jameson, with some Tullemordew, bushmills, black bush, Bains (A RSA whiskey) - but these are all in the expensive bracket - like north of R500 (about US$30) for many of them for a litre bottle

So, on a batch where i get 13 L good hearts - proofed down to 45% - depending on recipe, all else included (enzymes, yeast, etc.), costs were around R62 for an expensive mix (Grain, Oats and Rye) and as little as R50 for a simpler recipe (Grain, Oats)
Just converted the boiler to electric (we're on solar - so free) - and that drops my propane cost of about R17 per litre of product)
Range of costs is now in the R30 - R50 (US$1.90 to US$3.25) per litre @ 45% - that is less than 10% of commercial product price - and i think (biased of course), that it is better. No more headaches and tastes good.

Still a lot of learning to do, and this forum has a veritable treasure trove of information on it.

Thanks for nudging me (sometimes more like a shove ) in the right direction.
The journey continues!

[Saltbush Bill]

Great post Eric, your right it is an on going journey, the more you learn, the more you know ,how much you don't know.

[Ben]

Dont forget to ammortize the cost of the still over those bottles

I am not sure how it is there, but in the U.S. the lions share of the cost of any alcohol is tax. I still wouldn't get into the hobby with no equipment expecting to save a bunch of money, the initial investment bites you and takes time to pay off. If you don't stick with it for quite a while it will be far more expensive than just buying decent bottles off the shelf.

Like you said though, once you start producing something good it is much, much better than most of what is on the shelves, and buying liquor becomes something you do occasionally for the adventure.

[Saltbush Bill]

What you save will depend very much on what country you come from...........I've saved 10s of thousands on booze in the time I've been distilling.
A six week holiday and air fares to and from America is just one thing I've spent the saved cash on.
Building your own saves even more.

[Yummyrum]

My FIL asked me how much it cost to make a bottle of Gin .

I factored in the ingredients, the gas and the Gin essence ( yeah I know , I don’t do it the real way) . It worked out about $6 a bottle .

But , over the years I have spent way more than that getting setup . Gas burners , multiple gas bottles , fermenters , heaters for fermenters , stills , tools to build stills , bug water tanks and pumps etc , etc , etc ……. You all know the stuff .

But for me , apart from Karate , this is my only hobby . I don’t have guns , boats , bikes , fast cars , campers or any other money sucking hobbies , so I find I can justify writing off infrastructure costs as what keeps me going in life and happy .

OK , that probably sounds wrong .

[EricTheRed]

The way i see it, if your not saving enough - you're not drinking enough.

[TwoSheds]

Some interesting math, there's definitely some economics, but just like my other hobbies (especially woodworking and beekeeping) while there's some value in the end product if you don't enjoy the process, including all the tinkering, experiments, tasting, smelling, waiting, etc. it's not worth it.

But I know I'm in good company on here. Lots of like minded folks who wouldn't hesitate to break out a torch and some solder, but also don't mind spending a day babysitting the business-end of a product condenser.

IF you don't get discouraged and quit the hobby before you start making stuff you like it seems like even the cost of a commercial still (or six) will pay itself off in the long run.

Good topic Eric.

[SteadyStills]

It's cost effective to make hobby scale liquor.
Not so much beer.
But when the liquor stores shut down for covid, I decided I'll make my own.
And even with taxes, it's still cost effective.
Malted Barley is the most expensive ingredient.

[TwoSheds]

It's cost effective to make hobby scale liquor.
...
And even with taxes, it's still cost effective.

Until you figure in your time... Be sure to include learning, reading about technique and gear, building equipment, researching recipes, sourcing ingredients, brewing, moving stuff around, distilling, bottling, and cleaning... So much cleaning.

But it's fun to make, so we do.

[OtisT]

I don’t drink nearly enough to make home distilling cost effective. It does save me a shit tonne on therapy though.

[thecroweater]

In the past ive always answered this question with the opinion that its mostly about the enjoyment of producing something of quality and perhaps some libation unique. That said prices are getting to the point now that cost savings are becoming more of a factor, around here its like $6 verses $60 give or take meaning if you would otherwise be purchasing a significant amount you will indeed recover your setup and upgrade costs. Personally i havent upgraded much in years so it is well and truly paid for. For me its a fun hobby and saving money is just a bonus

[SteadyStills]

thick hedges over here.
I figure supplies cost $15 a run.
time involved is 12 hours.
I mean if you micromanage yer fine.

[TwoSheds]

That said prices are getting to the point now that cost savings are becoming more of a factor, around here its like $6 verses $60 give or take

I kinda feel that's about right for most of us. Materials (ingredients) cost is in the ballpark of 1/10th a comparable commercial spirit. Energy is a smaller but not negligible addition. Our gear, though sometimes costly, retains some value if you're willing and able to sell it.

Now if that bourbon would just hurry up and age!

TwoSheds

[Bradster68]

+1 Croweaters on track with me. Government making it hard to afford anything. And when you can't afford the necessities, how can you afford the pleasure items you desire. It makes coping with this situation "TOUGH".
A little money invested in this hobby and a forum like this to direct you down the right path makes it all worth while.
So for me it was about trying to save some money.
NO REGRETS

[Bradster68]

That said prices are getting to the point now that cost savings are becoming more of a factor, around here its like $6 verses $60 give or take

I kinda feel that's about right for most of us. Materials (ingredients) cost is in the ballpark of 1/10th a comparable commercial spirit. Energy is a smaller but not negligible addition. Our gear, though sometimes costly, retains some value if you're willing and able to sell it.

Now if that bourbon would just hurry up and age!

TwoSheds

Agreed 100%. I personally don't consider the energy part a cost.
I also cook my own meat. The energy is just something I use to get to the final product. I'm guessing the canning my wife does every year uses much more energy than my hobby does,and both are something the house needs to be complete
And no truer words have ever been spoken....come on bourbon, get a wiggle on

[Renhoekk]

I can literally make a bucket of vodka for $30, so yes the economics work out pretty good

[Yummyrum]

Getting new Solar panels fitted next week . We just moved in almost a year but the old ones here were over 12-15 years old and stuffed . Every-time it rains , they get moisture in them and takes a few days to dry out . So basically no power over summer here . ( Inverter detects an earth leakage and shuts the system down)

Anyway , getting 8kw solar to replace the old 3kw system .So even though we get SFA feed in tariff , we can run air-cons all day and looking forward to running the still for free …… no more gas bottles . ……
Every bit helps

just got two 8.5kg refills from Bunnings today ….. 50c change out of $60 AUD …. just keeps getting dearer .

[Homebrewer11777]

Have seen these discussions many times in homebrewing community. I got deep into it when I first started, coming up with depreciation schedules for every piece of kit I purchased and calculating cost per bottle of every beer I made...

One place I drew the line was trying to factor in time. To me this is a hobby. Found a definition of a hobby online that says "A hobby is any activity that you frequently do for pleasure during your leisure time." The equipment and ingredients and utilities are what it costs me to participate in this hobby so that I'm able to enjoy the time I put into it.

[Deplorable]

Ive only been at this for a few years now, but I have made enough, and shared/consumed enough that my kit has paid for itself aside from the Badmo Barrels. When I look at my utility bills the cost of power and water I use during the months I run adds very little to the bill. Fortunately, I live where water and power rates are fairly affordable.
My math works out consistent with others here, until I factor in the cost of the Badmo Barrel. That adds about $13.5 US to the cost of each 80 proof bottle for the first fill.
Glass and wood aged Spirits cost about $3 fifth for me to make on average. Those first fill Badmo batches that I've yet to try, are $14 to $18 bottles, I hope they prove to be worth the money, but even if they are only as good as what I get from sticks in glass, the cost per bottle is less than the states liquor tax on a 1.75L bottle, and just the satisfaction of that makes this hobby worth the time I put in to every bottle I make.

[SteadyStills]

The sorted thing be an active approach to the day.
Instead of using, I'm doing.
And that's desirable.
It's nice to find balance.