Sustainable Growth in the Midst of Uncertainty: Why we’re delaying the release of New Dawn’s Rye

The global economy is always changing, and right now, it's really unpredictable. By now you’ve probably heard how tariffs, which are taxes on imported goods, are a big part of current economic uncertainty. They affect all kinds of industries, including the market for spirits made in the U.S. For small companies like New Dawn, new tariffs or changes to existing ones can cause major issues, especially when we’re trying to plan the release of new products.

Impact of Tariffs on Whiskey Production

The current economic climate, marked by fluctuating market conditions and supply chain disruptions, has presented significant challenges for businesses across various industries.Tariffs on essential materials, such as grains, barrels, or bottling supplies, can increase production costs. This surge in costs can directly affect the pricing strategy for new whiskey releases. We have to decide if we can absorb the increased costs or pass them along to consumers. 

New Dawn is fortunate that our sustainability commitments have protected us from many of these tariffs - we source grains locally and our barrels are American oak made in the US. We’re even partially insulated when it comes to bottling supplies because we’re using the same bottles as our distilling partners who happen to have plenty of bottles on hand - at the moment. But with raw material shortages and increased transportation costs becoming more prevalent, we believe that rushing the release of our new product could compromise both its quality and our environmental commitments. By postponing the launch, we aim to navigate these turbulent times with greater resilience, ensuring that when New Dawn’s Rye does hit the shelves, it meets the expectations of our valued customers and sets a benchmark for excellence.

Economic Uncertainty and Consumer Behavior

Tariffs don't only affect the materials we need. When the economy is uncertain, and tariffs make it worse, consumers spend differently. They may not buy as much premium whiskey and will be more careful about what they spend their money on. This makes it hard for companies like ours to predict what people will want to buy and how much of a new release to introduce to the market. 

In the Spirit of Transparency 

As a small business (or as we like to frame it “boutique”), economic uncertainty poses an extra set of challenges when it comes to planning and adapting to changing market conditions. Our pockets aren’t deep and we don’t have as much capital to weather significant dips like some of the larger producers. So we’re playing a conservative hand, and right now that means delaying the release of our rye by a year so that we can be sure New Dawn weathers this storm. Trust when we say no one is more disappointed than the New Dawn team, this rye is REALLY good. 

Moreover, this delay allows us to invest further in sustainable practices, such as exploring alternative eco-friendly packaging solutions and working closely with our suppliers to establish more localized, sustainable sourcing methods. Our commitment to the environment is unwavering, and by taking the necessary time to enhance these aspects, we aim to contribute positively to both our community and the planet.

We understand that anticipation for New Dawn’s Rye is high, and we share in the excitement surrounding its eventual release. However, in prioritizing sustainable growth and responsible production, we are confident that this temporary delay will ultimately result in a product that is not only superior in quality but also aligns with our core values of sustainability and ethical production.

In the meantime we are working hard bringing our award winning whiskeys to your local stores and tasting events. Look for us at Super Lucky Star Liquor and Food in IL and Park Avenue Liquor shop in NYC and at Taste of Black Spirits - Brooklyn (June 27-28) and Clink Wine and Spirits Festival- Chicago (September 21). Or get your bottle today at newdawndistilling.com. 

Thank you for your understanding and support as we navigate these uncertainties with the aim of delivering a product that we can all be proud of. As always we are so appreciative of the community we’ve built this past year and your continued support. Cheers!