Déjà vu with Oregon micro- distilleries


































There is a sense of Déjà vu going on in Oregon. After two decades, it's happening again. In the last half of the eighties, the ‘good beer’ movement took hold in the quest for a better beer. Staring in the seventies, the Oregon wine industry put its roots down in the Willamette Valley. By the nineties, there were hundreds of small wineries making wine that rivaled the Old World. Here in the 21’st Century, small scale artisan-made distilled spirits are poised to remake the Oregon beverage landscape like its siblings, beer and wine.

On a recent trip to Portland, Alan Sprints of Hair of the Dog brewery lead us on a Portland metro area distillery tour from Troutdale to McMinnville in search of the magic elixir. Oregon has experienced a Renaissance in wine and beer making and now it is also undergoing a minor explosion in distilling. In the United States there are eighty-eight craft distilleries and Oregon leads the pack with nine with another four distilleries set to open in 2007. Only California, and Michigan have more craft distilleries. The July 2006 edition of GQ Magazine featured a story on the Portland distilling scene calling them ‘The New Bootleggers’. Clearly something is going on.

Here are a few of the players.
Brandy Peak, located in the coastal town of Bandon is the nation’s only wood-fired distillery and has produced grappa and brandies for years. Clear Creek is the granddaddy of Oregon craft distillers with 20 years in the business, making world-class Pear brandy and a line-up that includes eau-de-vie flavored with Douglas Fir to whiskey made with Widmer Brothers grains. These guys know how to distill fruit and retain the flavors. Central Oregon’s Bendistillery produces gin using local high desert juniper berries and lava filtered vodka for its tasting room and national distribution. The newest generation of craft distilleries includes House Spirits, New Deal, Rogue, Ransom Spirits, Indio, Dolmen and of course, McMenamins Edgefield Distillery, located in Troutdale.

Flavored vodka producer Indio Spirits has shifted their production from Portland to Cottage Grove where Side Pocket operate a distillery, cocktail mix production and bonded space for importers of various spirits. A new distillery named Highball has leased the former Indio space in Southeast Portland and is currently working on their TTB permit. Fermented honey distiller Dolmen is looking for larger digs out in Yamhill County but with dozens and dozens of wineries in the area, older buildings suitable for production and even a hip tasting room are hard to find. Beer impresario Jerome Chicvara is looking to occupy the old Yamhill Pub space in the heart of Southeast Portland by summertime with a new distillery. Fellow beer entrepreneur and writer Jim Parker has his eye on a place also close-in Southeast Portland. Looks like a distilling zone is emerging in Portland with House Spirits, New Deal, Highball, Chicvara and Parker all angling for a piece of the pie.

The product of choice that many new craft distillers started with is vodka. It’s relatively easy to make and though supposedly flavorless, Oregon distillers added their own subtle twists by filtering the spirits through huge tubes of activated charcoal like the Russian distilleries, or through crushed lava rock and limestone; all in search of a subtle flavors and smoothness. Indio Spirits has four flavored vodkas; a marionberry, a lemongrass/lime, a blood orange, a wasabi plus a straight up neutral vodka. After a few dozen variants, Rogue House of Spirits in Newport, Ore. is about to introduce their wasabi/ginger vodka. House Spirits started with its very smooth Medoyeff Vodka. New Deal has three vodkas including their Hot Monkey pepper vodka.

It’s not all about vodka though. Oregon craft distilleries are making grappa, gins, brandies, whiskeys, eau-de-vies and rums. Of particular note is House Spirits Krogstad Aquavit with a touch of caraway, anise and cardamom. Exquisite. Rogue Spirits Dark Rum is quite nice, more akin to bourbon than rum in many ways and has picked up a number of awards and rave reviews; and Dolmen Distillery’s Worker Bee is one of the few commercially distilled meads in the world. This rare distillate carries a hint of white flowers and honey, but with a nice blast of fire at the end.

Distillers are adding local juniper berries or spruce bows to their gin to make a product with a unique regional story. Look for Absinthe like products, more rum, extreme juniper gins and exotic flavored vodkas from these distillers in the new year.

Distillery Websites

Most of these distilleries welcome visitors, but some do not. It’s always best to call in advance to arrange an appointment.
Clear Creek Distillery
2389 NW Wilson Portland, Ore. 503.248.9470
www.clearcreekdistillery.com

Rogue House of Spirits
2122 Marine Science Dr., Newport, Ore. 451.867.3670

Rogue Distillery and Public House
1339 NW Flanders St., Portland, Ore. 503.222.5910
www.roguespirits.com

Ransom Spirits
2025 SE 7th Ave Portland, Ore. Same space as House Spirits.
www.ransomspirits.com

Edgefield Distillery
2126 S.W. Halsey Troutdale, Ore. 503.669.8610
http://www.mcmenamins.com/index.php loc=76&category=Distillery%20Homepage

House Spirits
2025 SE 7th Ave. Portland, Ore. 503.235.3174
www.medoyeff.com

Brandy Peak Distilling
18526 Tetley Road Brookings, Ore. 541.469.0194
www.brandypeak.com

Bendistillery
1470 NE 1st St., Suite #800 Bend, Ore. 541.318.0200

Bendistillery Martini Bar & Sampling Room
850 NW Brooks St. Bend, Ore. 541.388.6868
www.bendistillery.com

Dolmen Distillery
McMinnville, Oregon. No tours. 541.977.5812
www.dolmen.arbre.us

Indio Spirits
Cottage Grove, Ore. No tours. 503.351.1090
http://www.indiospirits.com

Where to go:

For all the hubbub surrounding beer and wine, spirits still have a ways to go before they pierce the local consciousness. Craft beers dominate the local landscape with 13% of all beers being sold in Oregon being a microbrew and Portlanders consuming maybe 60 cents out of each dollar spent on beer, on a craft beer. Oregon fine restaurants can’t get enough of the local Pinot noir or Pinot gris. The ‘Sideways’ effect from the runaway hit movie of the same name, had made Oregon Pinot noir the cats meow nationwide. Local distilled spirits have yet to achieve the same mass embrace from either consumers or the bar/ restaurateurs as their beer and wine brethren have. Still, there are ardent fans of the local swag with new converts every month.

Northwest food icons such as Greg Higgins and Cory Schreiber of Wildwood have yet to fully support the local distillers while bars at the Park Kitchen, The Heathman, Vault and the comfy upscale North 45 have definitely caught the wave. Pearl District Apotheke has a wide selection of local distillates and makes no cocktails. It’s all served neat, with ice or a splash of water. Now that’s respect. Über hip Mint and 820 continues to make adventurous avocado daiquiris and beet martinis using swag from the big distillers. So while they make some of the most interesting cocktails in town, it ain’t a haven for the local distillers... yet. It is probably at Oaks Bottom Public House in the southeast Sellwood/Moreland neighborhood where you will find the widest selection of local distillates as well as an excellent beer list. You’d expect that from publican, distiller & beer Pooh-Bah Jim Parker.

Local Bars where you will find local distillates and interesting cocktails:

Oaks Bottom Public House

1621 SE Bybee in the Sellwood/Moreland neighborhood | Portland, Ore.
http://www.bsbrewing.com/blog/?p=59

Park Kitchen
422 NW 8th Avenue | Portland, Ore.
http://www.parkkitchen.com/

45 North
517 NW 21st Avenue, at Glisan | Portland, Ore.
http://www.north45pub.com/

Vault Martini
226 NW 12th | Portland, Ore.
http://www.vaultmartini.com/

Apotheke
1314 NW Glisan Ste 2A | Portland, Ore.
http://www.apotheke-nw.com/

Mint/820
816 North Russell Portland, Ore.
http://www.mintrestaurant.com/

Oregon beer, wine and spirits guy Mike Sherwood contributed to this article.
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Corn Could Be In Cocktails Under Booze Law

LINCOLN, Neb. -- Eastern Nebraska apples and corn from all corners of the state could be in cocktails by this time next year.
A legislative committee on Monday heard arguments for allowing distilled spirits such as whiskey and vodka to be made at retail locations, much like beers are made at brew pubs.
Nationally the number of so-called micro-distilleries is growing as the demand for alcohol products perceived to be more high-end has increased.
Upstream Brewing Co., an Omaha brew pub, is pushing for the bill (LB 549), which was introduced by Sen. John Synowiecki of Omaha.
Company officials said they want to begin making light liquors such as vodka using some of the same equipment they use to make beer.
For more info contact Zac Triemert: ztriemert@upstreambrewing.com
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With the wines of the 2006 vintage aging in barrel (what I like to call the benign neglect season), I have finished my twenty-sixth harvest as a winemaker in the Napa Valley. For a decade of those years I have taught winemaking at the college level. Until recently, however, I had never been involved in extracting what some have called “the delightful poison” from wine. This past summer I was granted a permit to own and operate a still in my backyard. This short article is to relate my experience in gaining that permit. It was a surprisingly easy process.

Imagine for a moment: a one-page no fee application, once a year production reporting and up to ten thousand proof- gallons production allowed as a small producer. Not to mention the friendly people at TTB available to answer questions. That is indeed the case if you are applying for an Alcohol Fuel Producer permit. I understand that it is a somewhat more involved permit process if you intend to produce alcohol that might end up in a martini glass. The government’s intention with this permit is to allow (or) encourage the farm scale production of alcohol as fuel. If you have apples, culled potatoes, or sugar cane-pretty much anything that can be converted to ethanol- this may be your ticket to some energy independence. Blake Dick, NRC specialist at TTB told me that the interest in these permits goes up with spikes in fuel prices.
Blake was helpful and knowledgeable blake.dick@ttb.gov.

Much of the application addressed security for the still and stored alcohol. Any applicable state and local laws must be addressed. I asked the city attorney if there were any restrictions on operating a still in my back yard. He referred me to the city fire Marshall who had practical concerns. Did I have a fire extinguisher? Where was the alcohol and fuel mixture to be stored? Very reasonable concerns, easily met.

My interest and motivation in this project has at least two parts. I have a big garden, a photo-voltaic system, a Prius, and extra water storage which is also cooling water for the still. We live in increasingly unsettled times. It is prudent to have some buffering capacity and self-sufficiency. I could, if necessary, drive my car on the alcohol now in my ’61 Latour. Less grimly, I would like to be able use the heat that is abundantly available on my roof to drive the still. Unfortunately, the maximum temperature from a standard flat plate solar collector is not sufficient to drive a still. When the collector gets to about 150 degrees, it re-radiates much of the solar energy back into space. However, a vacuum insulated tube-in-tube collector can reach a stagnant temperature of nearly 500 degrees- plenty of process heat to drive a still. My experimentation involves putting that heat to work in a balanced, self-governing system.

Grapes have the highest sugar content of any fruit. For various reasons, there are tons of grapes that are available for only the cost of picking. At the end of harvest, I can make very inexpensive feedstock wine. If I can successfully generate cheap abundant heat and develop the control system, that will be another article.

David Amahaffey, Napa, CA.

Spirited Glass: Here's a toast to bourbon

By Michael Muckian
Special to The Capital Times

Gretchen Hils holds the glass of amber liquid up to the light and peers through it over the top rim of her reading glasses with almost reverential admiration.
"Look at that color," says Hils, manager of the Greenbush Bar on Regent Street. "Isn't that beautiful?"
The reddish-caramel hue of the liquid in the glass, even in the Greenbush's dim light, had an alluring quality, almost as if copper itself had been refined into a rich, robust elixir. In the world's color palette, nothing matches the shades of whiskey, and to the aficionado's tasting palate, no whiskey is quite as dynamic as bourbon.
Hils, a Kentucky native who came to the UW to pursue a graphic arts degree, is a self-described bourbon enthusiast who helms one of Madison's best small-batch and single- barrel bourbon back bars. Her passion stems both from the opportunity to promote one of her home state's greatest resources (more than 90 percent of all bourbons come from Kentucky) and from an abiding passion for the only truly American spirit.
Bartender Tom Loup pours a sample of one of the many bourbons featured at the Greenbush Bar, 914 Regent St. "It has to be made in this country to qualify as a bourbon," says Hils, who's been managing the Greenbush Bar for 11 years, but has been a bourbon enthusiast for much longer than that.
Bourbon doesn't have to be made in Kentucky, or specifically Bourbon County, to qualify as bourbon, but many think the state's limestone spring water creates the best natural additive to the spirit. Bourbon does need to be made from a mash that's at least 51 percent corn, weigh in at less then 160 proof (or 80 percent alcohol) and have been aged for at least two years in new oak barrels, the inside of which has been charred to flavor and filter the whiskey.
The end result, say Hils and others, is a truly unique spirit with an exclusively American connection and pedigree that makes the best of them world contenders. The smaller the quantity in production, the more distinctive will be the bourbon's character and flavor. In addition to mass-market blends, craft-distilled bourbons come in two varieties:

• Small-batch bourbons are distilled in a pot still in quantities of 19 barrels or less. The smaller quantity, which allows for greater experimentation among distillers, can also ratchet up the price.

• Single-barrel bourbons, as their name implies, come from even smaller, one-barrel batches. The same economies apply, but single-barrels can be even more idiosyncratic based on the nature and character of the distiller. Supplies also can be extremely limited.

Despite the exclusivity of some brands, Hils works hard to keep even the most exclusive bourbons in the price range of average drinkers. The following, each priced by the drink, are all worth exploring:

• Rock Hill Farms Single Barrel, 100 proof ($6.50): A fairly high rye content gives this whiskey a lovely color, an almost floral nose and soft, inviting palate. It would be too easy to succumb to this most alluring of bourbons.

• Eagle Rare Single Barrel 10 Year Old 90 proof ($5): With a vanilla nose and peppery palate, the bourbon, while popular, gets "hot" because of the alcohol as it aerates. Despite it being a past award winner, more balanced blending might help.

• Pappy Van Winkle's 15 Year Old 107 proof ($6.75): A powerful hitter with oak on both the nose and palate shows elements of the barrel charring in the aftertaste.

• Sazerac Rye 6 Year Old 90 proof ($5): It doesn't technically qualify in this category, but a quick taste is useful to recognize the fruit and spiciness in the mix. It also helps illustrate the important role that rye plays in the bourbon blend.

• Blanton's Single Barrel 93 proof ($6.50): One of the few bourbons whose blend adds an almost creamy quality to the spirit with honeyed caramel notes; a 2003 International Wine and Spirits Competition gold medalist.

• Booker's Unfiltered and Uncut Single Barrel 124.7 proof ($6.50): Named for the recently deceased Booker Noe, the most recent scion of the Jim Beam distilling empire, this bourbon combines the best of both balance and power. The full, rich flavor occupies the palate like an aged Bordeaux, with the whiskey aerating to open like a rose. A dash of water heightens the flavors of this dangerous beauty even further.

• George T. Stagg Single Barrel Unfiltered and Uncut 131.8 proof ($7.75): A bourbon lover's bourbon and Hils' personal favorite. Stagg's honeyed palate and nose are redolent of a dense pine forest in intensity with a touch of leather on the tongue engorged with the whiskey's fiery, full flavors.

• Jefferson's Very Small Batch 88 proof ($6) and Jefferson's Reserve Very Old 90.2 proof ($7.50): Both from the same distillery and driven by vanilla flavors from the oak kegs, the Very Small Batch has a fuller caramel palate, while the Very Old has a brighter, almost citrus quality while packing a little more punch.

• Old Forester Birthday Bourbon Small Batch 96 proof ($7): A full-flavored, nicely balanced bourbon with good grain and no evident oak flavors, the Old Forester unfurls beautifully in the glass with essences of fruit and spearmint in the aftertaste.
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Cardhu: defending the "indefensible

10 November 2003 Source: Chris Brook-Carter

The row that has erupted over Diageo's decision to alter the content of its Cardhu Scotch brand has far wider implications for the industry as a whole than whether the drinks giant is sacrificing Scotch heritage for its bottom line, as Chris Brook-Carter discusses.

When is a malt whisky not a malt whisky? When it's Cardhu, if you believe Diageo's critics. The extraordinary furore that has erupted around the company's decision to change the contents of this brand from a single malt, to what is being called a "pure malt" - basically a blend of different malts has even reached the corridors of Westminster.
Diageo defended its corner vigorously this week, by arguing that Scotch, like every other drinks category, must innovate to avoid stagnating. But the consensus within the industry still seems to be that the company has tried to pull the wool over the eyes of the trade and the consumer.
Those who have always maintained that the interests of the heritage-rich drinks industry and those of big business are incompatible are having a field day. This, they say, is just another example of the big corporation running roughshod over the collective good, in the hunt for a boost to the bottom line.
Though I know this may not be a popular opinion, I am inclined to side with Diageo on this one - at least in part. Firstly, it is not the case that Diageo has tried to sneak this past the trade. An announcement was made to journalists in June outlining the plans and giving the clear and honest rationale that the company was unable to meet demand for the brand with stocks from the Cardhu distillery alone. The question, therefore, is why has it taken this long for opposition to mobilise?
Of course it is never nice to see a famous malt brand fall by the wayside, but in this situation what should Diageo do?
Simply let sales of one of the fastest growing Scotch brands stagnate?
Indeed, I would go so far as to say that, as an industry leader, it has a responsibility to drive the category forward as best it can, particularly if this means continuing to meet demand for a brand that young consumers are clearly identifying with - which is nothing to be sniffed at within the Scotch trade. And those concerned that Diageo will now be able to churn out any old rubbish and call it Cardhu are (I hope) mistaken. This is not some tin-pot distiller producing moonshine, but one of the world's leading FMCG companies that knows it must maintain certain quality standards to maintain drinking loyalty (a lesson that was hammered home recently with the Captain Morgan Gold debacle).
This is not to say the approach has been flawless. Certainly, there is an issue of clarification and something has to be done to differentiate Cardhu single malt from Cardhu pure malt more clearly, as few consumers are going to understand the difference as it stands. This is not the same drink and clearly shouldn't be sold as such.
But the lessons to be learnt from this row are industry-wide rather than confined to the halls of Diageo HQ. 'Single malt', 'pure malt', 'pure single malt', 'blend of pure malt' and 'vatted malt' are all terms currently in use to describe Scotch brands, without any clear guide for the consumer as to the meaning or point of difference.
Is it time, therefore, for the Scotch industry to consider some form of official classification? One suggestion that has been looked at before and rejected - but is apparently being championed again by Whisky Magazine - is some form of kite mark for single malts. In a market that seems to get more confusing by the day, this is surely a way the trade can bring simplicity and credibility to the consumer purchasing process.
But the broader implication for Scotch opens up serious questions for the future direction of the industry. Diageo's decision - which we must assume is based on solid knowledge of its consumer - suggests Cardhu's drinkers are not concerned at all with the contents of the bottle and are instead buying into the image of the brand - an image defined not by taste but by packaging. And this of course runs completely counter to the direction the rest of the industry is trying to take its malt brands.
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Anyone have a used semi-auto or full auto label applicator for sale? Must be able to handle a 7.25" high label. Drop me an email or call.
========================
Guy Rehorst

Great Lakes Distillery, LLC
3950 N. Holton St.
Milwaukee, WI 53212
http://www.greatlakesdistillery.com

Ph 414-431-8683
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COLD WAR

As Vodka Sales Skyrocket, Many Newcomers Pour In Grey Goose's Payday Sets Off a Gold Rush; Hendrix Hits Vegas
By DEBORAH BALL
January 26, 2007;

What do a dive-shop owner, a government lawyer, and a dot- com millionaire have in common? They're all launching new brands of vodka, in one of business's most improbable gold rushes.
Vodka is clear in appearance and doesn't taste like anything. Yet nearly 260 vodka brands were introduced in the U.S. from 2001 to 2006, according to Adams Beverage Group. Swathed in purple glass, illuminated in pink, or infused with flavors like cherry vanilla, vodkas now account for about a quarter of all new hard-liquor brands, more than any other spirit. Hundreds more ideas are being shopped around but will never make it to market.

CASE STUDY

In 1997, Craig Dieffenbach sold SeattleOnline, an online city guide, for millions. Now the 45-year-old Seattle native is pouring some of those millions into his next venture: Hendrix Electric vodka, named after famed guitarist Jimi Hendrix. On Dec. 31, Mr. Dieffenbach stood on stage in the ballroom of a luxurious Aspen lodge, ringing in the new year with supermodel Heidi Klum and her singer husband Seal. As a spotlight projected a purple image of Jimi Hendrix onto the snow outside, the trio, with 750 guests, chanted the countdown to midnight. Later, guests took home mini bottles of the vodka and purple shot glasses. It was Mr. Dieffenbach's third party in Aspen that week -- another was attended by singer Mariah Carey.

Mr. Dieffenbach, who declines to disclose how much he spent on the three Hendrix parties, says he intends to use video from the bashes in promotional materials. "It was fantastic," he says. "It's unbelievable branding."

Near-Mythic Story

Behind the escalating vodka race are booming sales in hard liquor and the near-mythic story of one brand: Grey Goose, vodka's answer to Google. Launched in 1997 by veteran liquor marketer Sidney Frank, Grey Goose was priced at almost $30 a bottle, far surpassing Absolut, which sold for about $15 at the time. Overcoming skeptics, Grey Goose was an overnight success, selling 100,000 cases in less than two years. In 2004, when the brand's sales hit 1.8 million cases, Mr. Frank sold Grey Goose to Bacardi Ltd. for $2 billion.

"Ever since Grey Goose got sold for $2 billion, people have been seeing dollar signs," says Kay Olsen, a former marketer for Smirnoff vodka who is now handling the U.S. launch of a small Swiss vodka.
While beer sales have been largely stagnant, spirits sales are up strongly, thanks to the cocktail craze and a marketing blitz by spirits makers. In addition to launching a slew of promotions at bars and other nightspots, liquor companies have dramatically ramped up television advertising. In 1996, the spirits industry ended its self-imposed ban on television spots.
Sales of vodka, which blends easily into the sweet-tasting cocktails young drinkers prefer, have grown even faster. Vodka sales in the U.S. rose 4.5% in 2005 compared with the prior year. Sales of the most expensive vodkas -- some priced at more than $20 a bottle -- rose nearly 11%, according to market-research firm Impact. Since vodka is relatively cheap to make, profit margins on high-end vodkas can top 40%, industry executives say.

Unusual Factor

One unusual factor helping many entrepreneurs rush into the market is the liquor industry's antiquated structure of distillers, bottlers and distributors. Stemming from rules passed in the wake of Prohibition in the 1930s, this "three- tier system" was long viewed as a hurdle to efficiency. But it also creates easy points of entry for unknown small brands.
The result: Anyone with a name, a marketing pitch and some cash can launch a vodka, and outsource everything else. In fact, while few of the new vodkas are expected to make it big, many distillers, bottlers and distributors are profiting handsomely from selling their expertise to the flood of entrepreneurs.
Florida Distillers, owned by V&S Vin & Sprit AB of Sweden, recently dedicated several production lines to making new brands. One of them, a caffeine-infused vodka called p.i.n.k., is the brainchild of David Mandell, a lawyer who recently quit his job as the Federal Aviation Administration's chief of staff to pursue his new dream.

"We're getting a lot of inquiries these days, and I saw a business opportunity," says Chris Kearns, Florida's vice president of bottling operations.

MHW Ltd., a Manhasset, N.Y.-based importer and distributor, has widened its menu of advisory services to start-ups in recent years. It now helps new brands register in each state with liquor regulators and pools together small brands to negotiate discounts on delivery rates. About a third of MHW's overall sales comes from this advisory service, compared with 15% in 2000, says Chief Executive John Beaudette.

Screening Calls

Some industry veterans are starting to rein in their vodka business, fearing that too many brands are creating a bubble that will soon burst. A year ago, Distilled Resources Inc., a Rigby, Idaho-based liquor maker, stopped accepting new vodkas. Owner Gray Ottley says he already makes 19 new brands -- from huckleberry-flavored 44° North, named for the latitude of the distillery, to Zodiac, which comes in 12 different bottles, one for each zodiac sign. Mr. Ottley outgrew his existing warehouses so quickly that he built two new ones late last year.

Mr. Ottley says he was receiving several calls a day from prospective vodka entrepreneurs. To lessen call volume, he took down his Web site temporarily, and hired someone to screen calls after he puts the site back up.

"I just couldn't take all the calls," Mr. Ottley says. "We got overloaded."

Before he stopped taking new vodkas, Mr. Ottley agreed to make Hendrix. Mr. Dieffenbach explained that he and other investors were willing to sink about $3 million to get the vodka off the ground.

So far, Mr. Dieffenbach has committed to spend about $5.4 million. He paid Distilled Resources to make the vodka and French glassmaker Saverglass to produce a purple, glow-in- the-dark bottle. Over eight months last year, Mr. Dieffenbach spent $1.5 million on events and marketing before the vodka was even for sale. One event was an Oscar party in March attended by Philip Seymour Hoffman, that year's Best Actor winner.

Mr. Dieffenbach also hired Roger Baer, who has worked in liquor sales and marketing for more than 35 years. In April, at a major liquor convention, Mr. Baer spent two days pitching Hendrix to distributors. One who listened was Steve Matthas, the general manager for Nevada for Southern Wine & Spirits of America Inc., the country's biggest liquor distributor.

Mr. Matthas was skeptical about what seemed to be just another celebrity product. But Mr. Baer argued that Hendrix vodka was different because Jimi Hendrix appealed to such a broad group of consumers. He emphasized how much Mr. Dieffenbach was already spending on marketing to get key bars and restaurants interested in the vodka.

"You have to trust me on this one," Mr. Baer told him. "This is something that transcends generations. It has legs." The Southern executive agreed to distribute the vodka. Southern confirmed Mr. Baer's accounts.

For the past few months, Mr. Baer and Mr. Dieffenbach have been pushing to get Hendrix vodka into the big Las Vegas hotels and bars. Mr. Dieffenbach bought a six-bedroom house there, partly to throw parties to promote the brand. Last November, the entrepreneur also convinced the Flamingo hotel to let Hendrix sponsor its outdoor lounge for several weekends. During those weekends, Hendrix cocktails were served and a 40-foot long, purple stretch Hendrix Hummer was parked outside.

Since Hendrix vodka went on sale in August, it has sold 5,000 cases -- a decent amount, but not enough to be considered a clear success yet.

Negligible Impact

So far, the proliferation of new niche vodkas has had only a negligible impact on sales of the big brands such as Smirnoff and Stolichnaya, which sell millions of cases a year. Small vodka producers, in contrast, often sell no more than a few thousand. But big companies are taking note of the trend, launching their own niche products, and, in rare instances, buying smaller brands.

Several years ago, London-based Diageo PLC launched a grape-based boutique brand called Ciroc. Pernod Ricard SA, the world's second-largest spirits maker, has Elit, a $60-a- bottle vodka launched in 2004.

Many of the new vodka entrepreneurs lack the deep pockets of Mr. Dieffenbach or a major liquor concern. Joe Miller, who runs a dive shop in the Florida Keys, came up with the idea for a Key lime vodka one day in 2005 when his boats were idled due to high winds. He and his boat captain spent about $300,000 to launch Palm Cay Vodka that October.

Mr. Miller found a couple hundred unused bottles left over from another liquor brand that had been discontinued. He opted for stick-on labels rather than ones stenciled onto the bottle. Mr. Miller is now making the rounds to local bars and restaurants, offering to host cocktail competitions to drum up interest in Palm Cay Vodka. So far he has sold 3,200 cases.

"We hope that one of the big boys will come by and offer to buy the brand," Mr. Miller says.

In the 1990s, a marketing executive named Ronnè Bonder dreamed up the idea of setting up his own vodka still in the Hamptons on Long Island in New York, where he often vacationed. Setting up a distillery proved to be too difficult, so Mr. Bonder decided to have the vodka made in the Midwest.

In 1999, when he launched Hamptons vodka, Mr. Bonder hoped to sell 100,000 cases within five years. Instead, he peaked at about 10,000 cases in 2004. Then his distributor in California, which represented half of his sales, started to push a rival vodka instead of his.

Mr. Bonder devised cherry-vanilla and chocolate-raspberry flavors. He ordered slimmer bottles that fit better into the slots where bartenders keep liquor bottles behind the bar. The efforts didn't work, and his sales fell to just 5,000 cases in 2005. With money tight, Mr. Bonder fired his two salespeople.

But he hasn't given up. Dipping into the income he makes from other business activities, Mr. Bonder -- who will only say he is over the age of 50 -- flies around the country to make sales calls himself, often bunking with friends.

"It's been hard for him because there's a lot of competition," says Leonard Phillips, owner of Ambassador Liquors in New York, which sells Hamptons vodka. Mr. Bonder "has to do a lot more marketing, and he can't really afford it."

Last year, Mr. Bonder signed on with a new California distributor. He contacted nearly 200 bars and restaurants in California to talk them into restocking Hamptons vodka. In 2006, Mr. Bonder sold 5,000 cases.

Nonetheless, he's still optimistic. "I had a five-year plan to get to 100,000 cases, but now it's become a seven-year plan," he says. "I believe that it's going to do tremendously well."
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LETTE R TO EDITOR

Dear Editors:

Deborah Ball's Jan. 26 piece on the booming vodka business nailed only half the story. While the spirits industry has its share of entrepreneurs with gold -- fool's or otherwise -- in their eyes, the ranks of artisans vodka makers with sweat and passion in their eyes is swelling just as fast.
We make our own products, instead of contracting out, use real, natural ingredients, rather than synthetics or extracts, and offer consumers high quality spirits with depth and character, instead of the industrial stuff in niche packaging. We're in it for the long haul, not the quick buck. And I believe that in the next 5-10 years, artisan spirits will re-shape the industry much as small roasters changed coffee 25 years ago, microbrewers changed beer 20 years ago and gourmet confectioners changed chocolate less than a decade ago.
While it's tempting to focus on the sizzle side of the business, the real meat of the vodka industry lies with the artisan movement. I encourage you and your readers to seek out the real thing.

Artisanally yours,
Melkon Khosrovian

______________________________
Modern Spirits
The Sipping Vodka
ModernSpiritsVodka.com
626.771.9469
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Bill (ADI)

I took your suggestion and posed the question to Joan Dot Carpenter, TTB, about licensing required to make macerated fruit beverages i.e., berries mashed and soaked in neutral spirits.
Joan Dot was unclear, so she kicked it out among her fellow TTB Specialists for input. The responses from Team TTB were varied, but informative.
A. If the macerated fruit product is not fermented and is to be sold as a beverage, then it is a Distilled Spirits Product (DSP) and must be done under a distilling plant license.
B. If the macerated product is not fermented, but would be used to flavor wine, then it would be viewed as an essence, and can be produced under a winery license.
C. If the macerated product somehow started fermenting and fermented to an alcohol level of more than 0.5%abv before adding spirits, then it could be produced under a winery license. However, the spirits added must be wine derived, not just any neutral spirits. Also, the finished product must stay under 24%.abv. The product would be considered a wine.
Option “C”, above, shines a light down the path to developing the products I have in mind. Formulae methods and materials are obvious.
However, I have the uneasy feeling that if this question was posed again to TTB next week or next month, the answers would be different.
Thanks for the good input.
John Patrick Gill, Artisan
Tenba Ridge Winery
Blair, West Consin
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Distilling laws to change in Nebraska? Check this out.
http://uniweb.legislature.ne.gov/Apps/BillFinder/ finder.php? page=view_do c&DocumentID=85

Standards of Identity for the Craft Distiller

by Dave Bateman, Industry Analyst, Alcohol and Tobacco Tax and Trade Bureau (TTB)

What Are the Standards of Identity for Distilled Spirits? The regulations in 27 CFR part 5 establish standards of identity for distilled spirits products and categorize these products according to various classes and types. As used in part 5, the term "class" refers to a general category of spirits, such as "whisky" or "brandy." There are 12 different classes of distilled spirits recognized in part 5 of the TTB regulations. The term "type" refers to a subcategory within a class of spirits.

Subpart C of 27 CFR part 5 outlines the requirements that must be met for the classes and types of distilled spirits in order for you to properly designate and label your product. Why Are the Standards Important to You?

If you intend to produce a specific class of distilled spirit, and want to be able to print that type of spirit on your label, you must meet the minimum standards described in section 5.22 of the TTB regulations, the standards of identity for distilled spirits. For instance, the Class 1 definition in section 5.22(a) explains that the type, vodka, must first be distilled at or above 190° proof as a neutral spirit. In example, here is the definition of a neutral spirit with two types for vodka and grain spirits: 27 CFR 5.22(a) Class 1; neutral spirits or alcohol. “Neutral spirits” or “alcohol” are distilled spirits produced from any material at or above 190° proof, and, if bottled, bottled at not less than 80° proof.

(1) Vodka is neutral spirits so distilled, or so treated after distillation with charcoal or other materials, as to be without distinctive character, aroma, taste, or color.
(2) “Grain spirits” are neutral spirits distilled from a fermented mash of grain and stored in oak containers. By this definition, a distilled spirit can be called neutral spirits or alcohol as long as 190° proof is achieved. The source of sugar or starch to produce this neutral spirit is not a factor in the definition. So, to place the term “vodka” on a label of beverage distilled spirits, it must come from a neutral spirit, which was produced at 190° proof or higher.

Further, whisky definitions are listed in 27 CFR 5.22 (b)(1) to (b)(9). These include whisky, straight whisky, bourbon, corn, light, blend, blend of straights, spirit, Scotch, Irish, and Canadian. By definition, if you want to distill and label a whisky as a bourbon, rye, wheat, malt, or rye malt whisky, you must produce a distilled spirit with at least 51 percent of the grain, respectively, that is named on the label. Bourbon is unique in that it must be distilled from a fermented mash of 51 percent corn.

The regulations further state that all whisky spirits must be distilled at not more than 160° proof, and bourbon, wheat, rye, malt, or rye malt whisky must be stored in new charred oak containers at not more than 125° proof. If these whiskies are named as a straight whisky on the label, they must have been stored for at least two years.

The remainder of classes are as follows:

(c) Class 3; gin.
(d) Class 4; brandy.
(e) Class 5; blended applejack.
(f) Class 6; rum.
(g) Class 7; Tequila.
(h) Class 8; cordials and liqueurs.
(i) Class 9; flavored brandy, flavored gin, flavored rum, flavored vodka, and flavored whisky.
(j) Class 10; imitations.
(k) Class 11; geographical designations.
(l) Class 12; products without geographical designations but distinctive of a particular place.

Where Can I Obtain More Information?

The statutory requirements for labeling distilled spirits are in 27 U.S.C. 205(e) and the standards of identity regulations are listed in 27 CFR 5.22. To access the standards of identity regulations on the TTB Web site, please visit the Distilled Spirits page of

www.TTB.gov.

Also, if you need to understand what a gauge is or if you want to identify what required information is necessary to document a bottling record, this information is found in 27 CFR part 19 and is also accessible through TTB.gov.
The Beverage Alcohol Manual is another excellent source of guidance on basic mandatory labeling requirements and other regulatory matters involving distilled spirits. You may contact TTB at any time if you have further questions or concerns.

The Bureau’s Distilled Spirits Industry Analyst is available at dave.bateman@ttb.gov
or by phone at 202-302-3859 and 816-623-9405.
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Back Issues of 2005 Newsletters

Making Pure Corn whiskey other distilling books, equipment, supplies and expertise.
http://www.home-distilling.com/ search.asp
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Touring Scottish Whisky Distilleries

The Virtual Absinthe Museum
An extensive reference collection of original artifacts documenting every aspect of the history of La Fee Verte, from its use as a medicinal elixir in ancient times, to its heyday as a fashionable aperitif in the 19th century and its prohibition at the beginning of the 20th.

http://www.ttb.gov/spirits/bam.shtml distilled spirits manual circular.
This is a must for any formula or label approval..
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CVI Brands
1025 Tanklage Road, Unit F
San carlos, CA 94070
65-595-1768
Is interested in new products from microdistillers.
Contact: Paul Joseph
civibrands@sbcglobal.net
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