Vineyard & Winery Management

November/December 2016

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eptember is a crazy time of year at Huber's Orchard, Win- ery and Vineyards and its sister company, Starlight Distillery. Grape bins continue stacking up at the southwest Indiana win- ery, as the crush on red winegrapes starts in the Midwest. Not far from there, the retail marketplace is brim- ming with the ice cream and cheese shop, bakery and farmers market that sells the farm's produce as the res- taurant and special event space is fill- ing with visitors. Distillers Ted Huber and Jason Heiligenberg were so-called early adopters of a winery-distillery opera- tion, producing their first brandy — an award-winning brandy, at that — in 2002 and releasing it in 2004. Since then, they've gradually added other spirits alongside their wine offerings and, most recently, added a new distillery building and still on the other side of the win- ery's production area. The quaint tasting room offers three estate-grown brandies as well as applejack, vodka, gins, rums, whiskeys, bourbons and liqueurs in addi- tion to its three dozen or so types of wine. Huber's isn't the only winery to diversify with a spirits distillery. Helping influence these changes are the fluctuating national economy, the current agricultural down cycle and a general desire to broaden cus- tomer bases to destination wineries. Depending on the region, some win- eries are even adding a brewery; the trend appears to be breweries in the West and distilleries in the Midwest. The ease of adding an addition- al federal alcohol manufacturing license depends on the applicant. Certainly, winery operators are inti- mate with the licensing, operating and reporting laws at the federal, state and local levels. This familiar- ity can be vital when researching feasibility or business plans for a distillery, because the cultural shock over the number of requirements can be lessened. There are many differences for a distillery license compared to a winery. A common issue, for example, is the federal requirements for the building that houses + Brandy has a long history in the United States. + Deciding to add it to a winery's lineup involves special permitting. + Many wineries begin with brandy and then add other spirits. + There's a trend toward this business model nationwide. AT A GLANCE C R A F T B E V E R A G E S R E P O R T Adding brandy to your winery's lineup takes time and planning — and offers multiple rewards. B Y KARE N B INDER Starlight Distillery in Borden, Ind., crafts brandies and other spirits. [Photo courtesy of News and Tribune] 7 4 V I N E YA R D & W I N E RY M A N A G E M E N T | N o v - D e c 2 016 w w w. v w m m e d i a . c o m

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