CULTURE

Alternating DSP at Lofted Custom Spirits Help Clients Take Advantage of Reduced Tax Rates

At Lofted Custom Spirits, we continue to push the boundaries and re-write the rules around custom contract distilling. Beyond just making great whiskey, we’re creating long term partnerships with our clients and we’re proud to announce that we’re the only custom whiskey distiller at scale offering an Alternating Proprietorship.

What does that mean? In short, you can now process under your own DSP using our dedicated processing facility—giving you access to the reduced FET rates offered under the Craft Beverage Modernization Act (CBMA).  

Under CBMA rules, only DSPs that perform a processing activity other than bottling can claim the lower excise rate available on the first 100,000 proof gallons annually. That includes activities like manufacturing, blending, filtering, or adding flavor components to the liquid. The Lofted Custom Spirits team will still provide the support and manpower under your license. We’ve worked closely with TTB to bring this offering on board in a way that ensures operational effectiveness and full compliance with the industry regulations.

Alternating Proprietorship, for those who qualify, is a money-saver that Lofted Custom Spirits has made simple to capitalize. On average, clients save $6 per proof gallon. But the program also provides the flexibility, independence, and infrastructure to scale your brand with confidence. It’s another way Lofted Custom Spirits is delivering on our promise to deliver the highest quality whiskey and a true partnership built around your success.

We’re thrilled to offer this to existing and new partners. Want to explore whether it’s the right fit for your brand? Let’s connect!

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