industry trend

The distillery and workers from

Tuthilltown Spirits, Gardiner, NY

small is
beautiful by jack robertiello

R
alph Erenzo and Brian Lee don’t have to dodge swarms
of bees anymore when they make apple vodka in New
York’s Hudson Valley. In a micro-distiller’s world, that’s a
sign of progress. The two founders of Tuthilltown Spir-
its are just a few of those riding the American craft wave. Now
more than 155 strong, these indie distillers have been spurred by
consumer thirst for handmade products, the classic cocktail trend,
photographs courtesy of Ben Stechschulte

an easing of restrictions on in-store sampling, self-distribution

and sales of their own wares and even by the “locavore” move-
ment. This new generation of artisans has been building buzz and
a market by making moonshine, absinthe, gin and rye–anything
invention and innovation allows.
 The stills at
Clear Creek Distillery,
Portland, OR
So today there’s whiskey coming from
Colorado (Stranahan’s), Iowa (Templeton)
and Virginia (Wasmund’s); gin made in
Idaho (Bardenay), Oregon (Aviation), Ken-
tucky (Corsair Artisan) and Pennsylvania
(Bluecoat); rum from Massachusetts (Tri-
ple Eight) and Tennessee (Prichards); and
vodka, it seems, from everywhere. Only re-
cently has micro-distiller success story Tito’s
Handmade from Texas exploded, surpassing
250,000 cases in 2008, up from only 58,000
in 2004, according to Beverage Information
Group data. Most small distillers put out
only a fraction of Tito’s volume, but the pos-
sibilities, say observers, are unlimited.
It’s been a hard road since Prohibition
and Repeal. Twenty-some years ago, only a
handful of modern craft distillers, like Jorg
Rupf at St. George Spirits and Ansley Coale
and Hubert Germain-Robin at Germain-
Robin, were taking their chances at the still.
As Clear Creek’s Stephen McCarthy, who
followed soon after, remembers, “We just
came out of the bushes then, inspired in my
case by the little Oregon wineries that were
showing such promise. I thought if they
could do it, so could I.”
Rupf and Coale went on to jointly cre-
ate Hangar One’s widely respected flavored
vodkas, while the Germain-Robin Califor-
nia brandies are still considered equal or
superior to many more expensive Cognacs.
McCarthy’s Oregon-made pear eau de vie
and liqueurs are served at many fine dining
restaurants. But aside from Fritz Maytag, the
pioneer Anchor Steam craft brewer who
started making his own gin and whiskey in
1993, few new distillers jumped on board.
Yet in the last few years, the same im-
pulse that gave rise to the start–up of small
production American wines in the 1970s
and micro-brewers in the 1980s has encour-
aged start–up distillers. In some cases they
convinced legislatures to lower the entry
barriers for them, and soon the race was on.
The Real Thing
As some of these distillers started up, nu-
merous entrepreneurs simultaneously eyed
the vodka market and figured they could do
better. Some buy bulk vodka and redistill or
add flavor, while others have their recipes
custom- made by industrial distillers. To
Kevin Settles, owner of the three-unit Ida-
ho restaurant-distillery Bardenay, they don’t
count as craft distillers. “For someone who’s elsewhere – for instance, by law all gin mak-
rectifying by saying their product is hand- ers in England must start with someone
crafted is a bunch of hooey – that’s like say- else’s distilled spirit. And some say the at-
ing you made a scratch cake that came from tention entrepreneurs have attracted helps
a Betty Crocker box,” he points out. small distillers. As long as the products are
Settles has a point, but good products well made, it will only continue to do so.
can come from neutral grain spirit produced Either way, for retailers, carrying at least
some of the new handmade products is a no-
brainer, says Stephanie Moreno, spirit buyer for
Astor Wines & Spirits in Manhattan, which
In the last few years, has expanded its range of artisan products.
“We’re happy to promote and support
the same impulse that them,” notes Moreno. “They’re a bit of a
hand sell, but in some cases they already
gave rise to the start- have a following. I think perhaps some of the
up of small production ‘buy local’ movement is sinking in and some
people like to support an American distiller
American wines in the that doesn’t have the dollar of the big guys.”
1970s and micro-brewers Retailers depend on Internet sales and
whatever local following the products have
in the 1980s has encour- established, but all the better if distillers trav-
aged start-up distillers. el and promote their own product, she says.
In Their Best Interest
Making a consumer connection is essential
to success, say industry veterans. “Major in-
Hudson Four Grain
dustrial players can put out million dollar ad-
Bourbon combines vertising campaigns which the smaller guys
New York corn, rye, obviously can’t,” says Scott Leopold of Col-
wheat and mulled
barley orado-based Leopold Brothers. “But if you
can open a bottle in front of someone from
a craft distiller that they may not have tried
before you’re lowering the barrier and creat-
ing a level playing field. They otherwise may
not be willing to spend $35 on a bottle from
a distiller they never heard of before.”
For Tuthilltown, its products are cur-
rently sold in seven states and Europe, and
“everything we put in a bottle gets sold,”
says Gable Erenzo, distiller and brand am-
bassador for the company. Hudson Baby
Bourbon, made from local heirloom corn
 industry trend

Fifty-eight varieties of brandy, grappa and eau de vie, all created by small American craft distilleries,
wait to be judged in the private bar at St. George Spirits/Hangar One Vodka, during the 2009 Ameri-
can Distilling Institute’s annual conference.

and the first from New York, is its lead- Philadelphia Distilling’s
ing seller, and the line also includes Bluecoat Gin was named
best gin at the 2009 San
rye and rum. Altogether, Tuthilltown Francisco International
bottled 4,000 gallons of spirits in 2008, Spirits Competition
about 3,500 cases of 375ml bottles.
Similarly, 65% of spirits sold at
Bardenay locations are housemade, and
between the restaurants and Idaho state
stores, Settles sells out. “For years the
state stores could sell more than we can
make, and we just recently caught up
to demand,” he says. But the learning
curve can be treacherous. “When we first
opened (in 2001), it took seven years for
us to feel comfortable with our vodka.
Originally I thought it would be cool to
make a European-style vodka. But I could
tell by their faces my customers didn’t
think it was cool,” he continues.
And it’s not just placements and sales
that are increasing. Many of the products get lost, even if they are with one of the
from small distilleries are starting to take giant distributors.” That poses a special
awards at national competitions. At the problem for Leopold, whose line includes
2009 San Francisco International Spirits Silver Tree vodka and Leopold’s Gin. The
Competition, Bluecoat from Philadelphia brothers expect to move about 8,000 cas-
Distilling was named best gin, while the es in 2009, and when they reach their 11th
best fruit liqueur was Leopold Brother’s, state, will be aiming for 12,000 next year.
New England Cranberry Liqueur. Yet they recently lost their rep in New
Making the right “cuts” while distill- York. “Anytime you narrow competition
ing—removing the first and last portion in one market area, the smaller players are
of distillate to eliminate methanol, fusel going to be eased out. If you go to a state
oils and other unwelcome ingredients—is with two choices and don’t fit into their
photograph on right courtesy of Bill Owens

a skill, and while most modern industrial
producers have high-tech systems to keep
hangover-inducing ingredients out of
their products, small distilleries have to
rely on the human touch in many cases.
Small distillers also face distribu-
tion issues, says Moreno: “They tend to
portfolio, you’re done,” he laments.
Things may be changing. McCarthy
recently had a pleasant experience with
a large distributor. “I said to him, ‘If you
want a line of weird, expensive, hard-to-
sell products, I’m your guy,’ and he said,
‘Yes, actually I do." n