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Why is sediment formed during fermentation?

As the yeast convert sugar into alcohol and carbon dioxide, other byproducts are produced. These include dead or dormant yeast cells along with unfermented solids.

Why do you need to ferment at a certain temperature?

Yeast is a living organism. Most yeasts used in distilling are active and produce fermentation in a temperature range of between 18o and 26o C.This is the temperature range where we have the best chance of achieving good results. Above this temperature very rapid fermentation may produce unwanted byproducts. If the temperature is too high the yeast will die. At lower temperatures fermentation will be slower and may cease completely (stuck ferment) meaning the yeast has become dormant.

The latest release from Still Spirits, the new temperature tolerant yeast, will even ferment in temperatures as high as 40o C.