Lofted Custom Spirits Launches Innovative Alternating Proprietorship Program to Boost Cost Savings for Craft Distillers

Lofted Custom Spirits has launched a groundbreaking Alternating Proprietorship initiative, allowing craft distillers to cut production expenses significantly through strategic tax advantages. As Kentucky's leading contract whiskey manufacturer, the company has set up a specialized processing facility where partner brands can operate under their own Distilled Spirits Permit (DSP) license, utilizing Lofted's infrastructure and expertise. This arrangement enables smaller producers to access notable tax benefits under the Craft Beverage Modernization Act (CBMA), potentially saving up to $6 per proof gallon. This program addresses a key regulatory detail: only DSPs engaged in substantial processing activities—beyond mere bottling—are eligible for maximum CBMA tax reductions. Lofted's approach exemplifies a business model that blends regulatory compliance with operational flexibility for craft distillers. Image Credit: Lofted Custom Spirits Title: innovative-proprietorship-program-helps-craft-distillers-reduce-costs Published by Kalin Ned on August 4, 2025, the initiative highlights trends in tax-efficient distillery operations, shared production facilities, and regulation-driven bus...