Vineyard & Winery Management

November/December 2016

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w w w. v w m m e d i a . c o m N o v - D e c 2 016 | V I N E YA R D & W I N E RY M A N A G E M E N T 7 5 the distillery production. What might sound like a logi- cal solution for a public entrance may be against federal regulations, yet not an issue for a winery. Another com- plicating factor can be understanding how state and local laws for high-proof spirit production, storage and selling also apply. Laws in each state and local jurisdic- tions vary greatly. And distillery permitting can take months, compared to one for a winery. The Alcohol and Tobacco Tax and Trade Bureau reported the average distillery application approval time in July 2016 was roughly 4.5 months. Here's a look how one successful Midwestern winery-distillery operation — Starlight Distillery — has evolved in recent years, and what winery owners should think about regarding adding a distillery. A CASE STUDY The American history behind brandy can raise an eyebrow, because it's largely unknown to the general public. Before Prohibition, fruit brandies enjoyed wide popularity nationwide. It's an alcoholic beverage that matched well, back then, with the copious number of farms with orchards. At one time, peach brandy com- manded higher prices than whiskey, a spirit that didn't start gaining popularity until Prohibition was repealed. The Huber family had been making wine since it emi- grated from Germany and settled in Indiana. Commercial wine production began in 1978. Commercial distilling was licensed in 2001 and production began in 2002. The family's modern spirits operation started with a Christian Carl potstill with a four-plate column. Its first distillations were the barrel-aged brandies and clear distillations (straight from the still) of grappas from fer- mented grape skins and eau de vies from a variety of fermented fruit. As the team gained experience and expertise, it started making whiskey and bourbon — after all, Lou- isville, Ky., is only a 30-minute drive away. In 2013, Indiana passed a law that allowed Starlight Distillery to acquire a license to produce grain-based spirits (from 2001 until 2012, its license was for fruit-based distilled spirits). The new still house for grain-based spirits was completed in late 2014. Jesse Williams is the lead dis- tiller for grain-based spirits. Over the years, both Huber and Heiligenberg have been active with various wine and sprits trade groups. Notably, Huber's businesses have been a regular host of the American Distilling Institute's Midwestern confer- ences. Huber is a board member of the American Craft Spirits Association and the Distilled Spirits Council of the United States. Huber is president and director of winemaking and distillation. Heiligenberg is winemaker and lead distiller for brandies and gins. "First and foremost, I'd recommend to any winer- ies wishing to add a distillery that they study the poten- tial customer base," Heiligenberg advises. What's the point of adding a distilled spirit, or any other new prod- uct for that matter, if there isn't demand? Heiligenberg says their survey of the market required his team to create "a clear vision of the style of prod- ucts that will be produced." They also worked through the process of identifying how "the distilled products can be used to compliment a winery's portfolio and cre- ate synergy in production." The distillery was started with a goal to use every drop of commercial value in the grapes. Hence, bran- dy was the first product. But demand for other spir- its prompted an expansion into whiskey, gin, rum and other spirits. Huber specifically mentions fruit liqueurs and port style wines as examples. Among Huber's spirits are the Strawberry Infusion, made from strawberry juice and infused with strawberry brandy, as well as peach and raspberry versions. There's also blueberry liqueur, which is aged 10 years in old red wine barrels. Heiligenberg warns that blending the production calendar years of winemaking and distilling requires careful planning. "The seasonal nature of winemaking creates one of the biggest challenges when adding a distillery to the operation. A still is an expensive piece of equipment to have sitting idle much of the year. In our situation, we grow quite a few fruits that harvest at different times. This lets us keep the still in production throughout most of the year," he says. OTHER PRODUCERS No discussion about American brandy production would be complete without a mention of Germain-Robin Alambic Distillery in Redwood Valley, Calif. Hubert Germain-Robin helped found the distillery in 1980 and introduced his family's cognac practices to the United Huber's Orchard and Winery licensed its Starlight Distilling operation in 2001 and produced its first spirits in 2002. C R A F T B E V E R A G E S R E P O R T

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