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AMERICAN MADE « StateWays | www.stateways.com | September/October 2016 35 "I'm seeing much more of a boom-or-bust quality to new craft distilleries," Willis reports. "It's diffi cult not to look at what hap- pened to craft beer in the '90s and feel like that's coming down the pipe. It worries me. I think we could see a pullback." So which brands and categories could best survive a decline — and why? GO BIG OR GO LOCAL There seem to be two prevailing opinions about how a craft distillery can survive long-term in America. The fi rst strategy is all about size. The goal is to create a huge, lasting, international brand. These distilleries will focus on a few core products that can really take off, explains Death's Door Dis- tillery CEO Brian Ellison, rather than a diverse line of spirits. Death's Door offers a few niche products: white whiskey, local-wheat vodka and Wondermint Schnapps Liqueur. But its global gin brand is what pays the bills. "We focus on the gin and the wheat," Ellison says. "We focus on the larger brand with a story to tell." The strategy worked. Made from juniper berries and wheat farmed from Washington Island — a 23.5-square-mile island at Wisconsin's northeastern tip — Death's Door Gin has a world- wide following. It's a staple of back bars and the gin sections in retail stores. It also helped revive farming on Washington Island in 2005, after three decades of little activity. How motivated is Death's Door by the bigger picture? The distillery has a tasting room, and rather than fi ll it with thirsty tourists, Ellison eventually moved whiskey barrels into the space for aging. Long-term, he says, this is more profi table. The other strategy for modern distilleries to succeed is through regional strength. Bully Boy Distillers refl ects this, rely- ing on its Boston location and surrounding areas. "Having a stronghold in regional markets is important," Willis says. "That's something distilleries can always fall back on. We're in three states, but the bulk of our business is done in our home state of Massachusetts." "A lot of distilleries are in 15 or more states, but they don't have a foothold in any of those," he adds. Another advantage with the regional focus is nimbleness. Small-batch producers have more leeway to experiment and in- novate, testing out what their local, loyal fans like best, and can create larger, more-diverse product lineups. Nevertheless, Willis believes that scaling up remains critical for distilleries to survive. Bully Boy is in the process of moving into a new distillery and will upgrade from a 150-million-gallon still to one with a 750-million capacity. "The distilleries that are succeeding are trying to take it to the next level," Willis says. "Those that have scaled up and have the money for sales and marketing will have the advantage." GIN IS IN FOR REAL Whiskey is unlikely to signifi cantly decline anytime soon. The recent revival of the brown spirit seems to have reestablished it as a staple drink, especially among Millennials. But what about other spirits? Craft rum and vodka are still struggling to gain larger fol- lowings among consumers. Premium gin, however, has distillers much more enthusiastic about the future. Bully Boy founders Will and Dave Willis (left) and their Boston distillery (above).