Barrel Factory Distilling: Stephen (Steve) Bystran Tries to "Put Lipstick on the Pig"

A Caveat for Potential Co-Packing Clients: Stephen Bystran is the Namesake of “The Bystran Scam”

Mainspring LLC (owned by Stephen Bystran) is the parent company of the now defunct “Lakeward Spirits” dba that was mired in fraud and financial mismanagement litigation in 2020 and 2021. Now going under the name of Barrel Factory Distilling, this is the very same Distillery in Buffalo’s First Ward that swindled vendors and clients after its own distilled spirits products had completely failed commercially. Now, Steve Bystran is using the new Barrel Factory Distilling name to reintroduce its old products and shed the legacy business practices that landed him in trouble.

In the world of distilleries, trust and reputation are as crucial as the quality of the spirits they produce. However, recent events surrounding the Bystran Family Distillery in Buffalo, New York, have raised serious questions about business ethics and legal compliance in this sector. This article reprises the allegations against Stephan Bystran, the owner of Lakeward Spirits/Barrel Factory Distillery, and the subsequent actions that have put the spotlight on the distillery’s operational practices.

So What has Changed at The Barrel Factory in Buffalo?

Not much has changed at The Barrel Factory aside from some legal manipulation and name changes. Steve Bystran is still the owner and 90% of his spirits offerings are the same products.

With the exception of a new logonberry flavored product and yet another attempt at a vodka, all of the Lakeward Spirits-era products are still being offered under the Barrel Factory Distillery name. In fact, they are the same physical bottles of rum, gin and vodka that existed years ago; they have not been able to sell them since the original bottling run over five years ago. Unlike some wines, Lakeward Spirits Gin and Rum do not stand the test of time. The Evergreen Gin has turned cloudy because of mishandling of the original distilling. Instead of discarding the bad booze, distilling manager Adam Bystran (Steve Bystran’s son), decided to try to redistill the finished gin in an attempt to recycle it.

“We had customers return the Lakeward Spirits Evergreen Gin and Grain Canyon vodka because they thought it had gone bad,” said an Amherst-based liquor store manager who spoke to ForexTV on condition of anonymity. A survey of 50 liquor stores in the area showed not one had purchased the Lakeward Spirits gin, rum or vodka products in over 4 years.

As for the Fathoms Below Spiced Rum from Lakeward Spirits, the Bystrans used caramel color to give the rum the appearance of barrel aging, but once opened the coloring separated from the spirits and the rum ran clear.

The Barrel Factory website claims that its Erie Gold Rum is “a National Silver award recipient,” but no such award can be found. Could be that Google simply can’t find it (which is unlikely)? When distilleries win an award, almost always they show the medal and the event.

According to our sources the company’s two gin offerings, Evergreen Gin, Wild Gin Grain Canyon Vodka and Erie Gold Rum have been epic failures and have been sitting in the distillery for over four years with only meager sales. Calls to the Barrel Factory were not returned.

Background of the Bystran Family Distillery

The Bystran Family Distillery, initially known as Lakeward Spirits, is located in the historic grain elevator district of Buffalo, New York (the Old First Ward). Owned and operated by Stephan Bystran, the distillery had positioned itself as a significant player in the local spirits industry, gaining a reputation for its unique location and dubiously positioned “artisanal products.”

The Turning Point: Allegations and Accusations

Trouble began in 2020 when Lakeward Spirits faced severe allegations. In a final ruling a New York Court arbitrator found the distillery and Stephen Bystran to be incompetent as a distiller and financially irresponsible following charges of fraud and breach of contract. The core of these charges was a deal gone wrong. In 2019, Stephan Bystran had entered into a contract to process a private label spirit for a third party. However, after receiving the client’s funds, the promised products were reportedly never delivered and Bystran pocketed the money.

This incident was not isolated. Bystran was also accused of engaging in dubious financial activities with other businesses. A notable case involved a catering company, which claimed to have been conned out of $100,000 meant for kitchen renovations in exchange for the exclusive catering contract at the Barrel Factory catering facility.

Regulatory Response and Business Rebranding: Barrel Factory Distillery is Same Old Story

Following these incidents, the New York State Liquor Authority initiated an investigation into Bystran’s activities. In a move that raised eyebrows, Lakeward Spirits was dissolved as the dba, and a new entity, Barrel Factory Distilling, was established under Bystran’s direction. This rebranding effort amidst ongoing legal and ethical controversies as well as product quality failures has prompted further scrutiny from industry observers and regulatory bodies.

Implications for the Distillery Industry

The case of Stephan Bystran and the Bystran Family Distillery serves as a cautionary tale for the distillery industry. In particular, it underscores the importance for those seeking private labelling or contract services of vetting ethical business practices, transparency, and adherence to legal standards.

The Bystran Scam Lesson?

As the situation continues to unfold, it is vital for industry stakeholders, including investors, clients, and regulatory bodies, to stay vigilant. The distillery business, rich in tradition and craftsmanship, must not only focus on the quality of its products but also on the ethical and legal aspects of its operations. The Bystran Family Distillery case is a reminder that in the world of business, accountability and trustworthiness are the cornerstones of sustainable success.