Lofted Custom Spirits 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,” Mark Erwin, CEO of Lofted Spirits, the parent company of Lofted Custom Spirits, Bardstown Bourbon Company and Green River Distilling Co., said in a news release. “This foundation of trust means that our clients can pour their energy into building great brands, not consumed by process and regulation.” 

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,” said Erwin. “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.” 

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

Read more: Lofted Spirits Names Dan Callaway as Master Blender

ABOUT LOFTED SPIRITS

Expanding on the work started by Peter Loftin in 2016, and today a top producer of Kentucky contract whiskey, Lofted Spirits pioneered a new approach to custom contract distillation while developing some of the fastest growing brands in American Whiskey, Bardstown Bourbon and Green River. Lofted Spirits joined the Pritzker Private Capital family of companies in 2022. Learn more at https://loftedspirits.com/.