2.09.2007

Microdistillers

This has been needed for awhile:

Brewpubs seek to make distilled spirits

By NATE JENKINS, Associated Press Writer Fri Feb 9, 3:50 AM ET

LINCOLN, Neb. - Zach Triemert wants to bring what he learned in Scotland to Nebraska, and it isn't how to play bagpipes.

"We hope to use Nebraska grains and fruits to make world-class spirits," Triemert, who earned a master's degree in brewing and distilling while in Scotland, told a legislative committee recently. "It will bring another source of recognition and pride to our state."

Upstream Brewing Company in Omaha, where Triemert is head brewer, is one of an increasing number of brewpubs nationwide that wants to add distilled spirits such as rum and whiskey to its list of alcohol offerings that are made onsite then sold to customers and wholesalers.

A bill before the Legislature mimics what was done for Nebraska beer makers almost 20 years ago, when restaurants where allowed to craft their own brew. Now there are about a dozen brewpubs in the state.

When Nebraska passed the brewing law, there were about half a dozen similarly run microdistilleries in the country. Today, there are 88, said Bill Owens, president of the American Distilling Institute, who says the sharp increase is part of a general rise in demand for a range of specialty products, from beer to bread.

Big distillers are also cashing in on the demand for high-end booze. While revenues from sales of the cheapest, or "value," spirits decreased from 2005 to 2006, revenues from the most expensive spirits, called "super premiums," jumped nearly 19 percent during the same period, according to the Distilled Spirits Council, a trade group that represents mostly large, mainstream distillers.

Revenues from sales of super-premium vodka jumped the most — more than 43 percent — a figure sure to catch the attention of distillers because vodka, based on sales, is the most popular spirit in the country.

The heightened demand is partially due to more exposure to high-end spirits at tastings and other venues, and a national resurgence of "cocktail culture" where booze "mixologists" generate the same sort of excitement as top-level chefs, said Shawn Kelley, spokeswoman for the council.

"People aren't drinking more," she said. "They're drinking better."

Winemaking states such as California and Oregon lead the microdistilleries pack, but increasingly the endeavor is moving to the country's midsection. Minnesota, Iowa, Kansas, Missouri and Colorado all have what Owens calls "craft distillers."

When Seth Fox started a distillery in Kansas 1 1/2 years ago — the first distillery in the state since the 1880s — he figured he might be able to sell up to 1,500 cases of his Most Wanted Vodka. He sold double that, and has since branched out to produce other spirits. He uses Kansas grain to make the vodka.

"Kansas? Vodka? People don't believe me," Fox said.

Microdistilleries like his have popped up despite a mishmash of state and local laws that in some cases haven't been reformed since Prohibition and can take more than a year to navigate before operators get a permit, Owens said.

The government arm that regulates alcohol in Nebraska does not view the potential for microdistilleries as a threat. Hobert Rupe, director of the Nebraska Liquor Control Commission, said the interest in niche liquors is simply the third step in an alcohol evolution marked by more consumer interest in high-end, locally made products.

First it was beer, then wine and now spirits, Rupe said.

"You're seeing people go higher end, the idea of going local is appealing," he said.

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On the Net:

American Distilling Institute: http://www.distilling.com/

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