We feel this is something we need to share …

There are two trends taking place that are starting to affect the industrial world in general and craft distilling specifically, and we feel we need to share them with you, our customers. We are referring to the global chip shortage and the ever rising prises of raw materials.

Copper and stainless steel have, since the beginning of this year, seen price increases of 30%. Since stills are made out of copper or stainless steel, this price-rise directly results in higher production costs per still. How it affects craft distillers? Well, stills are bound to become more expensive soon.

The global chip shortage is the result of pandemic-related lower production numbers, combined with souring demand. It affects the price of electronics and may lead to increased lead times.

iStill, so far, has been able to keep the pricing of its units stable. We haven’t increased our prices at the beginning of the new year. We haven’t yet had to increase our prices during 2021. Our goal is to keep our prices at the current level as long as we can. The Covid Crisis has hit the industry hard enough.

Anticipating even higher demand for our innovative distillation technologies, we have purchased a lot of automation-related parts early in 2021. But as demand for the iStills is growing at an exponential rate, and chip supplies run lower and lower, we anticipate that this trend will impact our future lead times.

iStill, so far, has been able to maintain a 3 to 4 month lead time. The iStill Management Team, in anticipation of increased demand and potential chip shortages, expects our lead times to go up to 5 to 6 months soon. For some specific certifications, like ATEx and IECEx, lead times will increase to 7 to 9 months.

The way in which we will manage these challenges is conform the “first-in/first-out”-principle. Those orders that come in first (in terms of us receiving a signed purchase agreement and the associated first installment), will be first in line for delivery.

At your service,

iStill Management Team.

http://www.iStill.com

Software & Support Contract Termination!

With the software development of new functionality on the first NextGen PLC almost completed, and us having upgraded to a new second generation PLC now, we have decided to terminate existing Software & Support Contracts per December 31st 2021.

What this means? That we will cancel your bills for the years to come. The bills associated with the Software & Support Contract, that is.

For those that have the Software & Support Contract in place, please know that we’ll inform you individually via an email before the end of this year.

Customers with the Software & Support Contract, under the condition that they haven’t defaulted on the associated payments*, will get a final everlasting update to the latest software and functionality in the last quarters of 2021 or the first quarter of 2022.

Since the Software & Support Contract currently also provides access to four hours of free consultancy per year, that’ll change too. Existing customers that want our extended support can, when needed, from 2022 onwards, purchase support-hours via our Finance Department.

The continued income stream, generated from the Software & Support Contracts, also allowed us to sell you the first NextGen PLC iStills at reduced prices. With the introduction of the second generation PLC, now one year ago, we amended that.

Please note that all new production still purchases, even though the Software & Support Contract is no longer an eligible option, get four hours of assembly and first-run support for free. Nothing has changed there, since we introduced that service about a year ago.

With the premature termination of the Software & Support Contract we hope to further empower the craft distilling industry in general and our existing customer base specifically. We expect you to appreciate that there will be one invoice less to pay in 2022 (and beyond). A generous gift to our amazing customers.

The software part of the fee has allowed us to not only further boost the functionality of your iStill via annual over the air updates, it has also paid for the data transfer associated with the remote distillery control functionality. For now, iStill has decided to carry the data transfer costs internally.

The iStill Team wants to thank you for your continued support in helping us make an amazing line-up of distilling machines even more awesome.

*) Those few that chose to default on the Software & Support Contract fees, and that do not pay all outstanding invoices before July 31st 2021, are not entitled to the free final update to the latest software and functionality. Their stills will remain on default functionality settings.

http://www.iStill.com