External Influences Affecting the Spirits Sector: Technological
Today, technological advancements are emerging faster than ever. Yet, in the spirits industry, many producers have been reluctant to employ modern technology in production, marketing, or distribution. Most of them believe that introducing technology into the whiskey-making process detracts from its traditional artistry and appeal.
Instead of venturing into the tech side, spirit producers have historically focused on finding financially conscious ways to reduce the amount of alcohol lost during the aging process. To minimize alcohol loss from evaporation during aging, spirit producers are seeking cost-effective solutions. Barrels lose about 5% of their contents per year and cost around $150 each. As an alternative, some brands use smaller casks (5–10 gallons instead of 53), which speed up flavor extraction due to higher wood-to-liquid ratios. However, this method may result in a cornflake-like aroma in the final product, a side effect of intense barrel-aging.
Nevertheless, certain brands have utilized technological advancements to accelerate the whiskey aging process. For instance, chromatographic techniques have been applied at various stages of production to isolate congeners—compounds formed during fermentation that contribute distinct flavors—in order to achieve a targeted flavor profile.
Lost Spirits, a craft distillery, patented equipment developed by CEO Jim Murray that accelerates aging by manipulating light effects on wood. This technology gives their whiskey and rum products the taste of years-aged spirits in just days or weeks. Despite some skepticism, Lost Spirits has won awards, such as Best Spirits 2015 and Best in Class at the 2017 International Rum Renaissance Festival, for products like Whiskey Bible and Lost Gold. While other brands have tried similar innovations, most keep their techniques private to protect intellectual property.
Technology has also influenced the spirits industry, especially with the rise of mobile apps that make it routine to have almost anything delivered to your door. Leading alcohol delivery services like Minibar, Total Wine, Saucey, DoorDash, Instacart, and Wine.com are recognized for their quick service, variety, and strong ties to local markets. Minibar and Saucey are noted for their fast delivery, Total Wine and Wine.com stand out for their carefully selected wine and spirits offerings, and DoorDash and Instacart are popular for their convenience in combining alcohol orders with food or groceries.
As more consumers choose to drink at home, delivery apps present an opportunity to reach tech-savvy segments and grow the grocery app market. While online grocery shopping is gaining acceptance, adoption remains slow—food and beverage made up just 2.8% of U.S. ecommerce sales in 2018 ($14.94 billion).
Additionally, the rise of AI offers many unexplored technological possibilities for alcohol producers and suppliers so long that they are open to venturing into new territory to take advantage of these opportunities.
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