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Photo above of Blue Grass Cooperage,
Louisvlle, KY
2008 ADI Whiskey Conference: The Bus Tour
by Sonja Kassebasu, North Shore Distillery.
(Reprinted from http://www.thinkingofdrinking.blogspot.com/
Monday, April 7th was a very busy day at the
ADI conference. We loaded up on buses at 8 am
from the Seelbach Hotel and headed out into
the country.
First stop: Vendome Copper & Brass
I've been to Vendome before, so I mostly hung
out by the coffee. Here are a couple of
photos, one from this trip and one from the
last time I was there. The people at Vendome
are always very gracious when we come for
tours. However, when we had tried to contact
them about our still a few years ago, no one
would get back to us. Right or wrong, we got
the impression that they were so tied up with
the big bourbon distilleries in the area that
our project was too small.
Second Stop: Independent Stave Company
If you've never been inside a cooperage, you
are missing out. I've been to two now, and
they were similar, but actually more
different than I expected. This year, we went
to Independent Stave's cooperage in Lebanon,
KY. Unfortunately, they did not allow
photographs within the cooperage, so all I've
got is a couple of shots from the outside and
in the cafeteria (where we had a nice box
lunch, thanks to ISC).
These places are very loud (they pass out ear
& eye protection before you go in). New
American oak logs (mostly from Missouri) are
cut, and then laid on pallets to season in
the sun for a few months. Then they are dried
to 10-11% moisture levels in dryers and
gigantic kilns. Each board is sanded, filed
and shaped by one of their employees using a
large sander/cutting machine. Some boards are
made into barrel heads, and they have a
separate production line for heads. A cooper
chooses the staves (the individual boards
that go into the barrel) for each barrel and
lays them in place by hand. Machines then
drop on the first rings, and the barrels
continue on their journey.
Future steps involve steaming the barrels to
make the pliable enough to shape and force on
the other rings. The barrels are then dried,
and heads are added. Final step - test for
leaks. Interestingly, they had about a 25%
failure rate at Independent Stave, and a
separate line of folks who take those barrels
apart to fix them. The guys in these jobs are
tough, its hard work.
Third Stop: Makers Mark Distillery
Makers Mark has a beautiful campus and
facility in Loretto, KY, and they do a great
job of conveying their story to consumers who
come to visit. However, a few things about my
experience there were not what I expected. We
were given the exact same tour as other
(non-industry) visitors, which means we got a
very basic lesson in fermentation and
distillation that most of us didn't need or
want, plus a whole lot of marketing.
If I had counted the number of times our tour
guide had used the phrase "quality bourbon"
or "we only make a quality product," I think
I would have used all my fingers & toes, and
maybe someone else's. She also called us "you
people" a lot, which for some reason
irritated me (I sometimes am amused when
things like that actually bug me, not sure
why).
Finally, at the end of our tour, we were led
through one of the rickhouses, through a door
that led directly to the gift shop. All of a
sudden, I thought I was at Disneyland or
something.
I think the experience would probably be
great for the general Makers Mark consumer,
but I was annoyed. I did enjoy the tasting,
however, and one of their distillers joined
us then.
Final Stop on the Tour: Heaven Hill Distillery
We drove onward to Heaven Hill in Bardstown,
KY. They were ready for us, with some great
snacks and several mini-tour options
(rickhouses, barrel filling ,etc.). They
don't actually distill anything at their
facility in Bardstown - apparently the still
and its building burned down awhile back and
they now do their distilling in Louisville.
Spirits are trucked in for barreling and
aging in Bardstown. There are many
rickhouses, as well as a big visitors center
and other facilities.
We got to meet Parker Beam, who guided us in
a tasting of the Evan Williams Single Barrel
and Bernheim's Wheat Whiskey. He was gracious
and answered our many questions about how
they make their products.
Unfortunately I missed out on the tour of a
rickhouse somehow, but I did get to see the
area where they fill barrels.
It was a great day of tours, and we headed
back to the Seelbach Hotel in Louisville for
a free night. ================
Jonathan Forester has just posted a new topic
entitled "Want your facility and products
featured on a new TV show?" in forum "General
Discusion".
-----------------------------
Bill Owens asked me to post this
announcement.
I am the host of a new TV show that is about
to start production. Would you like your
facility and products featured on our
National TV show?
The show is on Artisanal Distilleries,
Wineries, Breweries, Cider Makers, and
Meaderies in the US. The first season will be
focusing on facilities in the North-East. If
you are in Connecticut, Maine, Massachusetts,
New Hampshire, New Jersey, New York,
Pennsylvania, Rhode Island, or Vermont you
are invited to be on the show.
We start taping June 1, 2008. The show
premise is that I and a guest expert on
wines, spirits, etc. will visit your
facility, ask you to give us a tour, and
teach us about who you are and what you make.
Then, back in our kitchen studio, we have
guest mixologists and chefs who will create
cocktails and a meal to pair with the
spirits, beer, or wine. Each show will
feature one artisanal distillery and one
winery or brewery, etc. We have lined up the
top mixologists in the country and world as
guests, as well as top chefs.
We will also have a website with bio's on
your facilities and products, the cocktail
recipes created by our world reknowned
mixologists, and links to your website.
Do you want to be a part of this production?
If so then please CONTACT ME IMMEDIATELY
since we are about to move from
pre-production to production and taping, the
show is to air starting the Fall 2008 season.
Thanks,
Jonathan M. Forester
----------------------
The topic can be found here:
http://adiforums.com/index.php?showtopic=104
Please note that if you wish to get email
notification of any replies to this topic,
you will have to click on the
"Track this Topic" link shown on the topic
page, or by visiting the link below:
http://adiforums.com/index.php?act=Track&f=24&t=104
Unsubscribing:
--------------
You can unsubscribe at any time by logging
into your control panel and clicking on the
"View Forums" link.
If you are not subscribed to any forums and
wish to stop receiving notification, uncheck
the setting
"Send me any updates sent by the board
administrator" found in 'My Controls' under
'Email Settings'.
Regards,
The ADI Forums team.
http://adiforums.com/index.php
==================
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Nakka Whiksy Ochone, Japanese Whiksey Voted Best in World / Distiling Workshop |
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NORWICH, England, April 27 The
winner of Whisky Magazine's single malt award
this year is distilled on an island, the
Japanese island of Hokkaido.
Yoichi 20 years old is the first single malt
produced outside Scotland to win the award,
The Times of London reported. Talisker 18
years old, produced on the Isle of Skye,
which took the top prize last year, went down
to defeat.
To add insult to injury, Suntory Hibiki was
named the top blended whisky in the world.
Suntory Hibiki got one of the ultimate
product placements in the 2003 movie "Lost in
Translation," with Bill Murray playing a U.S.
actor in Japan to do commercials for the
whisky.
Both brands are owned by The Nikka Whisky
Distilling Co.
A panel of 16 whisky connoisseurs selected
Yoichi in a blind taste-testing of 200
varieties. They suggested that the Japanese
climate helps create a mature whisky that can
stand up to Scotland's
best. ================= From The Sunday
Times
April 27, 2008
Ochone! Japanese whisky is voted the best in
world
Stuart MacDonald and Shota Ushio
Like English wine, it has suffered from the
taint of inauthenticity and has been the butt
of condescending jokes. Now Japanese whisky
has finally scotched all criticism by being
voted the best in the world, ahead of its
Highland rivals.
Yoichi 20 years old, distilled on the shores
of the Sea of Japan, has become the first
variety produced outside Scotland to win the
coveted single malt award in an international
competition run by Whisky Magazine, the main
industry publication.
The whisky, distilled near the city of
Sapporo on the northern Japanese island of
Hokkaido, beat dozens of other varieties,
including last year's winner, Talisker 18
years old, produced on the Isle of Skye.
Suntory Hibiki, the brand advertised by the
washed-up actor played by Bill Murray in the
film Lost in Translation, scooped the award
for the world's best blended whisky. The
historic double for Japanese whiskies has
provoked consternation in Scotland, where
whisky is as integral to a certain strand of
national identity as bagpipes, haggis and the
kilt.
Whisky war looms as high taxes price Scotch
out of Indian market
Yoichi 20 years old, which sells for £150 a
bottle, was praised by the judges for its
"amazing mix of big smoke and sweet
blackcurrant", "explosive aroma" and "big,
long and sweet finish".
The decision to give the top prize to Yoichi
followed a blind tasting of more than 200 of
the world's finest varieties by a panel of 16
of the world's leading whisky experts.
The judges said Japanese distillers had
succeeded in producing top Scotch thanks to
the variable climate in Japan, which assists
maturation and creates a purer whisky with a
heightened aroma.
Traditional distilling apparatus such as
coal-fired pot stills, used widely in Japan
but rarely seen in Scotland, was also praised
for producing a superior dram.
"Japanese whiskies performed magnificently
and they are really starting to make waves,"
said Rob Allanson, editor of Whisky
Magazine.
Nikka, the company that produces Yoichi, and
Suntory, the biggest spirits company in
Japan, are making inroads into the British
whisky market.
Tetsuji Hisamitsu, chief blender at the
Yoichi distillery, said he was "very moved"
by the award. ==================
The Northwest Agriculture Business Center
(NABC) and WSU's Center for Sustaining
Agriculture & Natural Resources at the
Northwest Research and Extension Center in
Mount Vernon will host an educational
workshop for producers interested in
micro-distilling. The workshop will run
from Friday June 20th through Saturday, June
21st at the WSU-Mount Vernon Research and
Extension Center in Mount Vernon, WA. The
NABC is bringing nationally recognized
distilling experts to Washington: Nicolas
Haase, CARL Distilleries, Director of
Technical Sales, B&D Technologies and
Alexander Plank, Director of Operations at
CARL Distilleries, Germany and Professor Kris
Berglund from Michigan State University where
he teaches in the Department of Chemical
Engineering and Material Science.
Passage of the new 'craft distillery bill'
makes it possible for Washington growers to
join the micro-distillery movement going on
throughout the United States. The new annual
distilling license defines 'craft distilling'
as an agricultural practice and will drop the
licensing fee from $2,000 to $100, allow for
on-site tastings, sales of up to two liters
per person per day, and allow production of
up to 20,000 gallons of spirits per year.
For registration information about the June
20 and 21st Artisan Distilling Workshop, call
NABC at 360-336-3727 or visit the NABC
website for registration information at
www.AgBizCenter.org. Space is
limited. ===================

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The New Breed of Handcrafted / Top Shelf Spirits / Cayman-made rum |
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I was at the ADI Conference a few weeks ago
and Bill Owens asked me to make an
announcement there, which I did; and then
post it here as well.
Anyone who would like to have their products
reviewed and published on Slashffod.com (http://www.slashfood.com)
and on AOL Food please contact me.
Slashfood is part of America On Line and
works directly with AOL Food. I'm sure all of
you are aware that millions of people read
AOL every day. As for Slashfood, it is the
number one professional team food blog the
past six years. 25,000-55,000 or more daily
visitors with 1.8-2.2 million a month. (That
is discrete visitors, not page reads or
multiple visits.) We have 15+ bloggers and
are a source for numerous buyers for stores
and big chains, including such like BevMo
whose buyer is a reader and has contacted
companies whose spirits have been reviewed on
Slashfood. I specialize in reviewing spirits,
wines, liqueurs, hard cider, mead, sake, etc.
I have no interest in writing negative or
luke-warm reviews, and will only publish ones
on products I really like.
Thanks,
Jonathan M.
Forester ==================
The new breed of handcrafted, top shelf
liquors
Liquor connoisseurs may clamor for rare,
decades old Scotches, but these superlative
spirits are as common as Absolut at least
when compared to the boutique creations from
Gardiner, New York's tiny Tuthilltown
Spirits.
This artisanal distillery handcrafts
small batch liquid luxury, such as
vanilla-nuanced Hudson River Rum and
local corn fueled Hudson Baby Bourbon, which
is New York's first production whiskey since
Prohibition. Bourbon gourmands can either buy
limited release bottles or snag an entire
wooden barrel of bourbon that Tuthilltown
will age until the liquor, and you, are
ready.
"For $1,200, you'll get three gallons of
92-proof bourbon," says Tuthilltown's
co owner Ralph Erenzo. "When you want
it" five, 10, 20 years later "we'll inscribe
your initials on each of your 30 bottles," he
says.
Such hands-on commitment symbolizes America's
burgeoning microdistilling movement, which is
slowly breaking Jack Daniels' stranglehold.
Twenty years ago in the U.S. and Canada,
there were about a half-dozen independent
microdistilleries; nowadays, there are nearly
100, from Philadelphia's Bluecoat Gin to
Iowa's Templeton rye to Denver's Stranahan's,
which makes whiskey with filtered Rocky
Mountain snow.
"The number of licenses for producing
distilled spirits is increasing every year,"
says Frank Coleman, senior vice president of
the Distilled Spirits Council. He says the
increase is attributed to changing
legislation. "Prohibition era blue laws don't
make sense in a modern economy. On the 75th
anniversary of Prohibition's repeal, many
states are changing laws to allow people to
distill spirits."
They're not changing fast enough for some
distillers.
"The government creates lots of barriers to
success. There's no blueprint to starting a
distillery," says Rich Stabile, owner of
just launched Long Island Spirits. Stabile's
company makes high-end LiV vodka, Long
Island's first licensed liquor since the 19th
century. Stabile and Co. spent more than 18
months restoring a barn (located on an
80-acre potato farm) and navigating Byzantine
layers of government, before starting
production in late winter 2008.
"That was 18 long months without a paycheck,"
he says, "but now we're overseeing everything
from the fermentation to bottling, while
using some of the world's finest potatoes:
We're allowing the Long Island potato to
thrive outside of North Fork potato chip
companies."
Instead of taters, Steve McCarthy's muse is
far sweeter. "I'm committed to crafting
high quality spirits out of Oregon fruit,"
says McCarthy, whose Portland, Oregon, Clear
Creek Distillery specializes in eau de vie,
which are clear brandies made from fruits
like cherries, apples and pears. "The fun is
finding fruit that helps convey a sense of
place. Right now, I'm looking out of my
office, and we're crushing blue plums."
McCarthy was an early champion of America's
microdistilling movement. He launched his
company more than 23 years ago, "and we went
absolutely nowhere for probably 15 of the 23
years we've been in business," he says.
Despite the rollercoaster economic ride,
McCarthy's remained steadfastly dedicated to
stretching people's perception of spirits.
He's created oddities such as Douglas
fir-flavored liquor, grown apples inside of
bottles then filled with apple brandy, and
even fashioned his own eponymous, peaty
Scotch. It's aged in sherry casks and
air-dried Oregon oak barrels and comparable
to anything sold in Scotland.
"The last time we made this, we sold out in
two days," he says. "It's hard to keep up
with demand."
For other distillers, it's harder to educate
customers. "Some people don't know how
whiskey gets its brown color," says
Tuthilltown's Erenzo. To combat this lack of
knowledge, he often travels to restaurants
and liquor stores to give "distilling 101
lectures." (By the way, freshly distilled
whiskey is clear; it slowly takes on the
color of the wood in which it's aged.)
That's something a big distiller can't do,
says Erenzo. "It makes a big difference to
get out there and meet people. This is a
grassroots revolution, and I still get up at
6AM. every day and turn the furnaces on and
keep the mash going."
This do-it-yourself ethos has long been
synonymous with microbrewers, many of whom
are making inroads into the spirit field.
"The first step in distilling is
fermentation. If you have the skills to make
beer, then you can start making spirits,"
says the Distilled Spirits Council's Coleman.
In San Francisco, Anchor Steam's owner, Fritz
Maytag, runs Anchor Distilling, where he
creates colonial-era single-malt whiskeys of
the kind that George Washington might've
made. In Bend, Oregon, the people behind
Rogue Ales started Rogue Spirits, and now
churn out piney Spruce Gin and rum formulated
with Hawaiian cane sugar and champagne yeast,
then aged in Jack Daniels bourbon barrels.
(And don't miss the Rogue House of Spirits
bar.)
Despite this rampant innovation,
microdistilling remains in its infancy. These
small-potatoes spirits are barely a drop in
the $58 billion booze market. Still, McCarthy
notes, "look at the evolution of winemaking
in America. When I was in high school in the
'60s, there were only three or four wineries
in America. It was all factory made stuff;
wineries completely rewrote the book. Now
we're making up the rules."
But, he admits, "this is a very long-run
proposition. Even after being eyebrow-deep on
this business for 23 years, I can't tell you
I know how it's going to end
up." ==================
Cayman made rum launched
By Alan Markoff, alan@cfp.ky
The first commercially made distilled rum
made entirely in the Cayman Islands was
launched last week.
Seven Fathoms Premium Rum uses an underwater
aging process thought to be the first ever
used with a spirit, said Walker Romanica, one
of the co founders of Cayman Islands
Distilleries.
"By aging our spirits underwater, we are able
to take advantage of the kinetic properties
of the ocean tides and currents to create a
very unique flavour profile and a remarkably
smooth rum," he said.
After the distilling process, the rum is put
into oak barrels and taken out to the ocean,
where it is dropped to a depth of 42 feet
hence the name Seven Fathoms.
Cayman Distilleries other co founder Nelson
Dilbert said the aging process is not just a
gimmick.
"[The underwater aging] works very well with
marketing, but there is actually science to
it," he said. "The product is always moving
and is also subjected to sound waves, which
is excellent for the aging process. There is
a Japanese company doing it with sake and the
French are doing it with wine."
As a result of the unique kinetic maturation
process, Seven Fathoms rum takes on
characteristics of rums aged much longer
using traditional methods.
"It's a gold rum with a light finish and no
harshness," said Mr. Dilbert. "It's actually
a sipping rum with plenty of flavour."
The idea of making rum isn't a new one for
Cayman Islands Distilleries.
Mr. Dilbert said his company has been doing
research for more than six years on making
rum, and has been tinkering with the
distilling and aging process ever since.
"We finally produced a product we're very,
very happy with," he said.
The idea that motion could help in the aging
process of rum goes back centuries, Mr.
Dilbert said, explaining that rum produced in
the Caribbean in earlier days was found to be
quite harsh. However, after travelling across
the Atlantic Ocean on British Navy ships, the
sailors noticed it had mellowed.
Seven Fathoms will be distilled in small
batches, and will be sold only in the Cayman
Islands.
The rum has already impressed one critic,
author and rum consultant Luis Ayala of Rum
Runner Press, Inc.
"[Seven Fathoms Rum] is not only
revolutionary, carefully distilled and well
packed, it is also quite tasty," Mr. Ayala
wrote. "I am sure that in the next decade
several rum distilleries across the world
will also be adopting this method of kinetic
maturation, but Seven Fathoms will forever be
remembered as the first one to do so, and do
it right."
The rum will be available in liquor stores
after the official launch party at the end of
this month. ================

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Distiller Wanted / Ethanol boondoggle |
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Good analysis of ethanol boondoggle
By Jon Nones
The National Review reports: Ethanol contains
merely 25% more energy than is consumed by
the process of making it. This means that the
farming, distilling and shipping required to
bring five gallons of corn ethanol to market
consumes four gallons of ethanol. Here is an
excerpt:
"Each gallon contains 76,000 British Thermal
Units (BTUs) of energy but requires 60,800
BTUs for production. The net energy gain from
ethanol is therefore approximately 15,200
BTUs per gallon, which translates to 99
trillion BTUs for the 6.5 billion gallons we
produced last year. That's the energy
equivalent of 868 million gallons of gasoline
- slightly more than what Americans consume
in two days." =================
Distiller Wanted
30 year-old company in the beautiful Pacific
Northwest seeking experienced distiller to
establish a high-end whiskey distillery.
Distiller must have experience and knowledge
of the entire production process. Vodka and
gin to be distilled, however, whiskey is the
primary long-term goal. Responsibilities
include selecting and ordering all
ingredients and equipment, overseeing the
preparation of the facility and producing the
spirits. Applicant must possess a strong work
ethic and be very detail oriented. Salary DOE
/ excellent benefits. Non-smoking
environment. Contact Jon Combs, PO Box
8000, Spokane, WA 99203. (509) 534-9000.
jcombs@oldworldchristmas.com
==================

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Templeton Rye / Orgeon Vodka Maker, Craft? |
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Left to Right. Keith Kerkhoff, Michael
Killmer, Scott Bush, Kevin Boersma, Jason
Walsmith and Carl Carlson stand on the
foundation of the 11,000 square foot
expansion of the Templeton Rye Distillery.
The expansion includes additional production,
storage and bottling space. Templeton Rye is
also growing rye adjacent to the distillery
for the first time this year. Go to
Templetonrye.com for more
informations. =================
Vodka maker finding customers after years of
sacrifice
By SHERRI BURI McDONALD
Just about anyone can start a business, said
Jeff Meyers, co-owner of a distillery and
bottling operation in Cottage Grove. The
tough part, he said, is staying in business.
"You've got to learn how to love grilled
cheese," Meyers said, only half joking.
Since founding their company, Side Pocket
Corp., in 1998 when they were just barely out
of high school, Jeff, 30, and his sister,
Megan, 31, have made countless personal
sacrifices. Instead of spending their cash on
cars, travel and entertainment when they were
in their 20s, they plowed everything back
into their company.
They've even put off finding mates and
starting families.
"Our view is (the business) comes before
everything," said Meyers.
He and his sister routinely work six days a
week.
The sacrifices have started to pay off. Side
Pocket has been profitable each year since
2005, Meyers said. Its sales growth has
topped 100 percent in each of the past five
years. It provides 12 - soon to be at least
15 jobs - with good pay and benefits.
In the past year, the company has spent
millions of dollars buying its site in the
Cottage Grove industrial park, expanding its
plant to 88,000 square feet, and launching a
new ultra-premium vodka.
That product, "Support Her," comes in a
frosted bottle with a screen-printed pink
ribbon, the international symbol for breast
cancer awareness.
A bottle costs $34.95 in Oregon. For each
bottle sold, Side Pocket donates $5 to breast
cancer research and treatment. That's more
than twice what the company makes on the
product, Meyers said.
By launching Support Her, Side Pocket hopes
to help people battling breast cancer,
increase sales, and establish national
distribution not just for the company's new
vodka, but for its line of about 10 other
brands of distilled spirits, Meyers said.
Support Her is one of the fastest-growing
brands of vodka in the nation, he said. Side
Pocket introduced the product in September,
and it's now available in 22 states, with
plans to be in 48 states by December.
"We've had incredible interest in it," he
said.
National grocery chains, such as Kroger -
Fred Meyer's corporate parent - have agreed
to stock the product in states that allow
grocers to sell distilled spirits.
Now the race is on to line up distribution in
the full 48 states.
Side Pocket has spent $12 million on custom
bottles, equipment and marketing to quickly
launch Support Her, said Meyers.
Side Pocket has hired specialized brokers to
make Support Her available nationwide. One,
for example, who works with the buyer for the
Army and Air Force Exchange Service, which
provides products and services to military
families worldwide, opened the door for
Support Her to be sold at military bases in
California, Louisiana and in the Washington,
D.C., area, Meyers said.
Earlier this year, the buyer for Air Force
One and the White House called Side Pocket to
request Support Her.
Once Side Pocket has established national
distribution for Support Her, it can use
those same sales channels to promote its
other brands, Meyers said.
The company's early products, such as
Lubrication vodka and its Octane line of
100-proof spirits, were geared to people in
their 20s and 30s. Others, such as its Vixen
brand and Chick Food Premium Schnapps, were
marketed to women.
In recent years, the company has been
creating products for customers in older
demographics (age 40 to 60), such as Meyers
brand premium blended Canadian Whisky.
Oregon, a leader in microbreweries and
wineries, now is home to nine craft
distillers, according to the American
Distilling Institute. There are 144 nationwide.
When they first started, the Meyers siblings
had no idea that they'd eventually own and
operate a distillery. Jeff's original idea,
which he outlined for a high school project,
was to create a gourmet food company centered
on salsa.
He and Megan renovated a garage behind their
parents' Cottage Grove home, and obtained FDA
approval to make and package foods. But when
the siblings finished the renovations, they
realized that the salsa market was flooded.
"Everyone who had a stove and a kitchen sink
was making salsa," Meyers said.
They came up with another idea. They thought
their mom's Bloody Mary mix was a winner, so
they decided to try to sell that. They
introduced a line of drink mixes and later
made contact with a broker for Baja Bob's,
who asked Side Pocket to bottle the product.
Side Pocket bought an automated filling line
and Baja Bob's orders kept them so busy, "We
didn't have time to do anything else," Meyers
said.
Before long, Baja Bob's asked Side Pocket to
import tequila to package with the cocktail
mix. Meyers obtained a certificate from the
Oregon Liquor Control Commission. Later, when
he made arrangements to start importing
tequila, a federal regulator called and said
Side Pocket needed to obtain a special
federal permit.
Just as Side Pocket got its federal permit,
"the low-carb craze crashed," Meyers said,
and the plans to sell tequila with Baja Bob's
drink mix fizzled.
Jeff and Megan spent about a week batting
around ideas of how else they could use their
hard-won distilled spirits permit. That's
when they came up with plans for Octane,
their own line of 100-proof products and
Lubrication vodka.
Meyers said his goal over the next five years
is for Side Pocket to become one of the
nation's largest distillers.
"You've got to find a creative way to keep
yourself in business during difficult
economic times," Meyers said.
===================

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Diageo 900 million equity Stake in Nolet. |
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Diageo has bought the
rights rom Nolet to distribute the Dutch
Vodka Ketle One.
The photograph above leads you to think Ketle
one is "hand crafted" because it shows a
small distillery
Does anyone know who really produces Ketle
One? ================== Diageo and
Nolet to form a 50/50 company for
super-premium Ketel One vodka
Diageo to pay $900 million for its equity
stake
London and Schiedam, The Netherlands (5
February 2008) - Diageo, the world's leading
premium drinks business, and the Nolet family
have agreed to form a new 50/50 company,
which will own the perpetual exclusive global
rights to sell, market and distribute the
successful super-premium Ketel One vodka.
Diageo has agreed to pay US$900 million for
its 50% equity interest in the newly formed
company, which will be based in the
Netherlands with the Nolet family owning the
other 50%. Due to its rights under the
agreements Diageo will fully consolidate the
financial results of the new company
accounting for the Nolet holding as a
minority interest. Profits from the sales,
marketing and distribution operations will be
shared broadly equally.
The Nolet family will continue to own the
brand rights for Ketel One and Diageo will
become the exclusive distributor of the brand
globally.
Ownership of the Nolet distillery in Schiedam
in Holland, where they have been distilling
since 1691 and where Ketel One vodka is
manufactured will remain with the Nolet
family. The distillery will supply Ketel One
vodka exclusively and perpetually to the new
company at an agreed rate of return.
Currently, Ketel One vodka has an annual
volume of 1.9 million cases. It is primarily
a North American brand in the super-premium
vodka segment and will complement Diageo's
premium Smirnoff and its ultra-premium Ciroc
brands. Similarly outside the United States
Ketel One will expand Diageo's brand range in
vodka. The Nolet family and Diageo believe
that this new relationship will accelerate
the growth of the brand in the USA and
elsewhere in the world.
The transaction is expected to close by 31
March 2008, subject to the required
regulatory approvals and other conditions.
Diageo expects that the transaction will be
EPS neutral in the first full financial year
after closing and will be economic profit
positive in year five using a weighted
average cost of capital of 9%.
Both the Nolet family and Diageo consider
this alliance to be perpetual. However,
should either party ever decide to sell its
stake in the company, the other party will
have the right to purchase it at a price to
be agreed. The Nolet family has an additional
right to put its stake in the company to
Diageo in the 4th or 5th year after closing
for $900 million plus interest. If Diageo
buys the Nolet family stake, full ownership
of the brand will transfer to Diageo. Diageo
can choose not to buy in exchange for a $100
million payment. The family may then pursue a
sale to a third party.
Commenting today, Paul Walsh, Chief
Executive, Diageo, said:
'This transaction is strategically important
for Diageo, giving us an interest in an
outstanding high quality brand and fantastic
potential for global growth in the
super-premium vodka segment.
The new company represents a unique alliance
in our industry.
Commenting on the transaction, Carel Nolet
Sr, said:
'We are proud to be partners with Diageo, the
world's leading premium drinks company, and
look forward to working together with this
team of highly talented people.
The partnership between Nolet and Diageo will
combine our brand building and
entrepreneurial skills with the unrivalled
brand management, marketing and distribution
expertise of Diageo to fully develop the
potential of Ketel One vodka in the USA and
globally.'
UBS Investment Bank acted as financial
adviser and Sullivan & Cromwell LLP and
Morgan Lewis & Bockius LLP acted as legal
advisers to Diageo in this
transaction. ===================

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Moonshine Exhibit |
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Local moonshining history on exhibit in
Richmond
This small still, which uses propane gas
instead of wood to fire the operation, is
one of three authentic moonshine stills in an
exhibit produced by the Blue Ridge Institute
and Museum at Ferrum College that will be on
display at the Virginia Historical Society
Center for Virginia History in Richmond,
beginning May 10. The exhibition is called
Moonshining in the Blue Ridge.
Monday, May 5, 2008
A piece of Franklin County history will be
showcased in Richmond starting this week.
"Moonshining in the Blue Ridge," an
exhibition hosted by the Blue Ridge Institute
and Museum at Ferrum College, opens at the
Virginia Historical Society on May 10.
"This is the most comprehensive exhibit that
has ever been developed on moonshine in the
country," said J. Roderick Moore, exhibit
curator and director of the institute and
museum. "The exhibition was so popular at the
museum that we decided to keep it open for an
additional 11 months. National Geographic
Magazine even filmed the exhibit for their
documentary on moonshine."
Items on display in the exhibit include
actual stills, a full-size diorama of a still
operation, still makers' tools, dozens of
period photos, video interviews with
moonshiners and federal agents, documents,
jars and other memorabilia.
"Much of what people think they know about
moonshining is shrouded in folklore and
myth," said James Kelly, director of museums
at the Virginia Historical Society. "We
wanted to take this opportunity to tell the
real story of an important cultural and
economic phenomenon to visitors who couldn't
make it to Southwest Virginia to experience
the original exhibit."
On May 28, Moore will do a gallery walk of
the exhibit to explain how moonshining
paralleled economic conditions and the
availability of legitimate jobs during its
peak.
"Today the number of people involved in
moonshining appears to be just a small
fraction of the number running stills in the
1940s and 1950s, but moonshiners are still in
the Blue Ridge mountains of Virginia," Moore
said, adding that "the skills of making
smooth corn liquor or apple brandy are all
but gone because, today, moonshiners deal in
quantity rather than quality."
Distilling know-how came to Virginia's
southwest region with the first English,
Scots-Irish and German settlers, said
Jennifer E. Mason with the state historical
society. The U.S. government briefly taxed
alcohol in the late 1700s and early 1800s,
and following the Civil War, an alcohol tax
became permanent.
By the middle of the 1800s, scores of
distillers were licensed, she said. With
railroads expanding and roads improving, the
Blue Ridge distillers extended their
distribution area to include the coal mine
region of West Virginia and factory towns in
Southside and in North Carolina.
By the late 1800s, Franklin County had more
than 70 legal distilleries and an untold
number of illegal moonshine operations,
Mason said.
But Prohibition in the 1920s sounded a death
knell to distilleries, as making alcohol
became illegal.
That's when illegal stills started to
flourish, along with conspiracies involving
local politicians, the moonshiner's
adaptation of larger stills and new
technologies, the shift from brandy and grain
alcohol to so-called "sugar liquor," market
expansion into large urban centers such as
Philadelphia and the transformation of the
moonshiner into a regional folk hero, Mason
said.
Franklin County made national headlines for
one of those conspiracies involving local
politicians and officials.
According to "A Bicentennial History" of the
county by John S. and Emily J. Salmon, a
federal grand jury indicted 34 people in a
1935 conspiracy case that defrauded the
federal government of an estimated $5.5
million in whiskey excise taxes.
Those indicted included former Franklin
County Sheriff D. Wilson Hodges, a state
prohibition officer, several deputies with
the sheriff's department, former House of
Delegates member David A. Nicholson and
Franklin County Commonwealth's Attorney
Charles Carter Lee.
It took the government 25 days over a period
of five weeks to build its case. The defense
used 16 days to try to refute the case,
calling 69 of its own witnesses. Introductory
statements to the jury, closing arguments and
rebuttals took nine days.
The trial lasted 10 weeks and was the longest
trial on record in Virginia to that date,
except for the treason trial of Aaron Burr
held in Richmond in 1807.
The Franklin County conspiracy case went to
jury at 3:10 p.m. on June 29, and a verdict
was reached on July 1. Twenty of the 23
defendants that stood trial were found
guilty. Lee and two deputies were acquitted.
Most of those received light sentences and
were reportedly back in the business before
they even started serving their jail times.
The exhibit will run at the historical
society, located at 428 North Boulevard,
until Sept. 22. ==================

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Beverage Alcohol Manual / Back issues |
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The DSP Distillery Link / How to get a DSP Permit |
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Join the American Distilling Institute |
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inform
the public about craft distilling.
Members receive the DISTILLER newsletter
and the Distiller's Resource
Directory.
American
Distilling Institute / 2008
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