Lofted Custom Spirits Launches Alternating Proprietorship Program

New processing facility helps brand partners unlock significant tax breaks

LOUISVILLE, Ky.--(BUSINESS WIRE)--Lofted Custom Spirits, the nation’s first and leading custom contract whiskey distiller, today announced the launch of a new Alternating Proprietorship program, allowing partners to take advantage of significantly reduced excise tax rates. Using their own DSP license and Lofted’s dedicated processing facility, craft brands can get the full benefit of Craft Beverage Modernization Act (CBMA) tax breaks and save an average $6 per proof gallon.

Under current CBMA rules, only DSPs that perform processing activities beyond bottling—such as manufacturing, blending, filtering, or flavor addition—can claim the lower federal excise tax rate on up to 100,000 proof gallons annually. Lofted Custom Spirits’ Alternating Proprietorship opens the door to TTB-compliant tax savings not available through other Kentucky contract distillers.

“Lofted Custom Spirits built this program like we’ve built our business – on a foundation of true partnership, operational integrity, the utmost quality and strict compliance. This foundation of trust means that our clients can pour their energy into building great brands, not consumed by process and regulation,” said Mark Erwin, CEO of Lofted Spirits, the parent company of Lofted Custom Spirits, Bardstown Bourbon Company and Green River Distilling Co.

In a newly outfitted processing facility, the Lofted Custom Spirits will continue to provide hands-on support and labor under the client’s DSP license, ensuring seamless operation and continuity.

“We’ve worked closely with the TTB to bring this offering on board in a way that ensures operational effectiveness and full compliance with the industry regulations. As with every expansion we’ve made, we’ve created this program in the spirit of true partnership with the brands that trust us to keep their whiskey brand flowing,” said Erwin.

The Alternating Proprietorship is available now for both existing and new clients. For more information, visit LoftedSpirits.com.

ABOUT LOFTED SPIRITS

From bespoke bourbon production to boundary-pushing brands, Lofted Spirits is where tradition meets transformation. Expanding on the work started by Peter Loftin in 2016, and today the number one producer of Kentucky contract whiskey, Lofted Spirits pioneered a world-class, industry-shaking approach to custom contract distillation while developing some of the fastest growing brands in American Whiskey, Bardstown Bourbon and Green River. A unified entity, Lofted Spirits is built to lead the global whiskey industry, delivering exceptional experiences through innovation, trust and transformative industry impact while crafting some of the world’s most desired and awarded whiskies. Lofted Spirits joined the Pritzker Private Capital family of companies in 2022. Learn more at LoftedSpirits.com.